When it comes to running a business, there are always ways to trim costs and increase your profit margin. While some low hanging fruit may be apparent, other ideas may only present themselves when you open your thinking to new possibilities. Sometimes your best option is to consider calling a professional third party who will be in a position to offer you fresh insight from an outside perspective.
Expenses Inventory. First, you'll want to take an expense inventory. A visual representation of your budget is useful here to see where all of your available assets are going. Create a pie chart according to these percentages. In this process, you may be surprised to find some expenses that could be eliminated or reduced. Multiply monthly expenses by twelve to see the annual impact. Small expenses add up. A leaky faucet can fill a bucket in no time!
Reconsider your suppliers. If you maintain an inventory, a couple times a year at least, check to see if you could adjust where you source from. Consider not only price but quality and timeliness when making any sourcing adjustments.
Optimize Utilities. Can you find ways to reduce your utility bills? If you're in a state with great incentives, it might be worth it to get solar panels. Even simple things like turning of the lights when not in use (consider motion detection sensors) and switching to affordable energy efficient lighting can add up to hundreds or thousands over a few years time. These savings could then be invested into efficiency upgrades or other cost-saving options.
Tap into your people power. Maybe your staff has ideas that could improve the work dynamic at your business. Ask for their suggestions. Consider making this process anonymous for the most honest results. Find out what they like and dislike about their job. Find out if they have any ideas about how to make their work more efficient and meaningful. Are there any opportunities or desire for cross-training? You may be amazed at some of the synergy this may unlock!
Hire an experienced professional team to do it for you! Typically, lean business consulting services likeLean Focus LLC will present a professional analysis of your expenses, showing you how to make your lean business even leaner. Their people-centered approach holistically evaluates and improves both the logistical inner-workings of your business system and the heart of your business -- your employees and clients.Share