Build A Better Business – Review Your Costs regularly

There are various ways to increase profits one is to make more sales the other is to reduce your costs for the same level of sales.
Some of the main factors are

Eliminate unnecessary costs. You need to constantly keep your costs under review, e.g. are you on the right energy tariff, can you get your raw materials cheaper elsewhere with the same quality, can you negotiate lower bank charges, are you paying too much for your insurance and do you need all the cover you are paying for.

Ensure your assets are being utilised efficiently. For example if you have empty space in your property maybe you can sublet, identify any inappropriate assets that are not being used effectively

Understand your hidden costs. As an example if you recruit on an ad hoc basis and you recruit the wrong person, not only will you have to pay the recruitment fee if you used an agent, the knock effect of more training and the fact that the employee is below the standard necessary and so may make many mistakes with all the follow on consequences for your business. It’s important to identify hidden costs and put effective policies and processes in place, if possible, to minimise errors and reduce the need for fire-fighting.

Use the latest technology. An example of this cloud accounting software which is a very cost effective and flexible solution for most businesses up to a turnover of £5M. The cost savings in not having to maintain the software on your equipment and the flexibility of being able to use it anywhere on any device make it very effective.

Using Skype or VOIP can reduce your landline costs and maybe appropriate for smaller businesses

Go paperless if you can Using electronic billing and filing all your documents on a computer can save you stationery, postage and storage costs

It goes without saying that we can help you conduct cost reviews and identify areas where you could reduce your cost base