12 Ways Your Business can Reduce Costs and Increase Profit
- Know your strategic costs. You should understand the things that make and save the most money and try to aggressively cut everything else. Costs directly linked to product quality, excellent customer service, profitable new sales or your defined competitive edge are strategic. You should consider everything else overhead.
- Review all expenses and costs. According to a study of the 80 most productive companies in the world in the book Less Is More: How Great Companies Use Productivity as a Competitive Tool in Business, profit-oriented executives ask one simple question before they make any decision: “What’s the good business reason to do this?” If there’s no easy answer to this question, reconsider those costs.
- Embrace Technology. Take a look at your current administrative processes and identify areas that could be automated using technology, instead of manpower. The business world is changing rapidly and keeping up with the latest advancements by harnessing technology will result in significant reduction of operational costs.
- Create a monthly budget, and stick to it. You can’t manage what you can’t measure. Although two-thirds of owners agree they are responsible for cost control, many don’t have monthly budgets, according to a report of small business owners by the National Foundation of Independent Business. According to Bob Fifer, the author of the book Double Your Profits, if you want to save a lot of money in very little time, set a budget. It can save you a significant amount of money every month.
- Lower Marketing Costs. Traditional forms of marketing are costly and outdated. You should leverage the power of internet to reach out to millions of users online. As you might already be aware of, there are both free and paid advertising opportunities available online. Instead of hiring a marketing agency, you can make use of free classifieds websites and cheap CPC advertisements to promote your business. Not only it would come out cheaper, but also be more targeted and effective.
- Bid out costs regularly. Any cost that does not go out for bid is a wasted cost-saving opportunity. Don’t accept price increases without seeking competitive bids. Even telling a supplier you are considering putting work out to bid can generate cost-saving ideas.
- Automate expense controls. You can better control most of your company’s expenses by spending a little time using basic online banking tools and controls. Set the authority to approve all expenditures, and restrict others using automated entitlements, authorization and spending limits, particularly for strategic or high-value expense categories.
- Customer Support. Every business deals with customers and customer support is one area that nobody can afford to ignore. Having said that, maintaining a customer support team of your own can be a costly affair. Add to that the cost of recruitment and training. That’s why the majority of small businesses prefer to outsource customer support activities to an external vendor.
- Got a happy customer? By telling others what they’ve gained from using your products or services in presentations or informal conversations, your sources can encourage others to use your products or services.
- Make experience count. Get free or low-cost help-and give local college students a chance to learn the ropes-by hiring interns.
- Join an association. Many trade and business associations have reasonable membership fees and offer discounts on everything from insurance, travel and car rental to long-distance phone service, prescriptions and even golf course fees.
- Get an Audit performed on your Telecom and Utility Billing. According to a study by Aberdeen, “…few enterprises have had a comprehensive and accurate way to determine what they are spending on telecom and utility services, with whom and why.” The study also notes that 85 percent of mid-market companies pay their telecom bills in full without auditing and 75% of organizations have errors or savings opportunities on their utility bills.
When you need to improve your business telecom and utility infrastructure or implement new business cost reduction processes, having an expert outside point of view can often be critical for the best outcomes. Call for a FREE consultation LT~CRS NATIONWIDE: 866-504-4050. And Yes…we WILL call back!
At LIMITLESS we are your trusted partner and understand how to best help our Clients reduce costs, while ensuring you stay highly effective and efficient with your services. We strive daily to help you become more financially sound, putting more money back in your wallet. The average savings we find our clients is between 17% – 36%.
We have saved companies tens of thousands and even in some cases millions on their telecom, utility and vendor expenses with our proven cost reduction process.
At LIMITLESS we use our Powerful Process to identify cost savings, improving and negotiating contracts, finding billing errors and recovering billing errors. Our Proven Results allow our Clients to reinvest the “savings” into growth initiatives or apply these “found profits” to their bottom line.
Our clients realize that they derive the most benefit by concentrating their efforts on their core service or product. Most business people simply do not have the time or in-house expertise to analyze technology, suppliers and pricing alternatives.
Contact LIMITLESS today for a FREE CONSULTATION to discover how to get control of your unmanaged spend and reduce expenditure on business services.
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