At all times, people have sought to increase production with minimal costs. The fate of the enterprise, as well as its employees and owners, depended (and depends) on efficiency.
Instructions
Step 1
According to Henry Ford, the best way to reduce production costs is to reduce the cost of the manufactured item (product). To do this, it is advisable to take a time-tested product and improve it by taking away all unnecessary things. It is necessary to reduce the weight of the product, replace the materials with more suitable ones. This is called minimization optimization.
Step 2
The use of credit leverage, borrowed funds can have a positive effect on the technical equipment of your production. There is no need to use watering cans on the farm when they can be replaced with plumbing and hose. You can purchase new machines on lease - this is a loan for a business, which is given against the security of the machine itself and on the condition of providing a business plan.
Step 3
A business plan is a necessary document for any major transformation. It should clearly state in which way you are going to achieve success. A successful business plan includes a list of sequential actions broken down by time intervals. You can involve business consultants in the preparation of this document, which can be found on the websites of freelancers (FL.ru, Freelansim.ru) and specialist networks (Professionali.ru, E-xecutive.ru). Using a quality strategy will not only benefit from optimizing production processes. Lenders will be ready to give additional loans, because the business plan is the guarantor of your awareness.
Step 4
Sales is an important process for increasing production. The prices at which you offer your goods and the number of sales will directly affect the success, including quantitative, of your enterprise. Reduce all avoidable additional costs. Sell your products at a price that is acceptable to both you and the buyer. Take care of product positioning in the market - your product should have clear differences from competitors, and any of your salespersons should tell potential buyers about these differences. This approach will allow you to have sufficient margin to generate income and invest in further expansion.
Step 5
Use the 80/20 Principle (Pareto's Law) to select the most profitable products. Only a small part of the assortment brings the greatest profit - this law works for most of the existing markets. If one wine out of ten makes more than half of your gross profit, it makes sense to only produce that variety with tenfold zeal. Calculate the production profitability of each product from the assortment. Leave only what makes money in production.
