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94 ideas for reducing costs and improving profitability

Introduction to 94 ideas for reducing costs and improved profitability

"Do you want to know 50 Great Ideas Building profits you can put to immediate use in your business to increase profits and reduce costs? "

If YES read all these ideas have been implemented by customers and have benefited from their companies to give their dramatically increase their profitability. Most ideas can be put into action immediately. Each idea has the potential to give you many % points increase in net profits.

Research shows the benefits have increased by 4% -56% and reduce costs by 18% -37% Within 2 years using the simple 5 step process called Advantage card model. Usually, a reduction of 5% of the cost of performance is sufficient for companies with the largest deficits.

Companies can calculate the value of saving those 2 simple formulas

If the company recorded a loss

Total costs and expenses = absolute value of sales + + loss / tax income – ie X =

Minimum savings you make in 2 years = 5% of X (which was calculated above)

If the company made a profit

Total costs and expenses = Sales + + Net income / income tax – ie Y =

Minimum savings you make in 2 years = 5% Y (which was calculated above)

 

If How can you save? Improve your profits?

 

 

General Advice regarding the earnings improvement and cost reduction

1. Recycling and reuse. Plastic bags, envelopes and other packaging suppliers are good trash bags. Another example is to use the standard envelope with boxes printed on the front of the envelopes where provide information for internal mail traffic. Upon receipt, the recipient can reuse again to send his mail to another employer internally.
2. How about saving and re-use of photocopying or printing, where there were errors in the handout or printed. If it does not contain any confidential information of these waste materials can be used to write or scribble notes by staff that the use new laptops and notebooks. Ideally stop buying new notebooks and notepads. You save costs and the environment.
3. Learn to copy and print on both sides of paper. Buy copiers and printers that can do it with ease and provide a company policy requiring all employees to photocopy on both sides of paper.
4. Insulation for your roof, attic and walls (including exterior walls electrical outlets) will absolutely save you money over time. Much of this you can do yourself. While you're there check the caulking around doors to the outside, if you can see today between the door and frame – the purchase of a roll of adhesive foam gasket door and close the cracks.
5. Consider investing in reusable items. Rechargeable batteries are a good option if your battery consumption is high – The question you should ask yourself is: why is your battery consumption high and what can be done to reduce this?
6. Having a non-smoking policy or reduces the smoke in time. Many staff spend much time outside the office in smoking areas. Sometimes staff other accompanying jointly lose a lot of productive time.
7. Limit alcohol on the premises of the company and functions. Alcohol is an additional expense, you may be removed altogether, or at least reduced significantly.
8. Stoppage in within your organization such as the staff together and pooling funds for Lotto and filing footy! They are acts of personal staff during the hours of work.
9. napkins paper with arrest and paper towels. cloth towels are more absorbent and can be used again and again. They also clean up much better than paper.
10. Think about buying before doing so. Ask yourself if you need or simply want. Do you already have something that will perform the same task? Is it good or should be replaced after a few uses? More importantly, are you ready to put your profitability improvement and cost reduction goals have? If an item is superfluous just say no.
11. Use the 24 hour rule. Wait 24 hours before making the purchase of the non-critical.
12. If you subscribe non-essential services, such as satellite radio, prepare yourself mentally to cancel the service and then call their accounting department. Tell them you are cancellation – they will be transferred to several people, but every time I tell them the truth – you want to cancel because you can not pay for the service. If you persist, you offer a discount – a substantial reduction – to continue the service because it is much cheaper for them to keep a customer than to get new. If they do not want to give you a discount – cancel the service and do without while you save money.

Alerts on profit improvement and cost reduction

1. Do not only consider the option the least expensive – it is certainly not always the best option. Many, many times, an initial savings will cost you later. Scrutinize the cost of the life cycle in addition to the cost of acquisition.
2. If you buy used, make sure … This is particularly true of cars. It's worth the investment to have a mechanical control of the car (unless you are fully competent in this area – Are you sure?).
3. Do not go completely overboard. It's great to be frugal, it's not very happy to be petty miser. If staff need to watch something really good business but keep your priorities.

Phones and communication

1. When it comes to phones consider consolidating all your landline, VoIP and cell phones. This way, you'll be able to streamline the number of lines and methods of communication and be reducing costs. You can also use the streamlined list to negotiate with your service provider or its competitors to obtain better prices.
2. When he comes to phones Cellular wonder if most of the staff in need. Again deemed to streamlining staff who work in places outside and must be contacted by the head office, or vice versa.
3. When cell phones are set clear rules on use. Any violation of this must be borne by the employee and recover their wages.
4. Consider sending SMS or short message service or e-mail members of staff in foreign locations or those who can travel abroad with whom you can communicate.
5. Consider using the VoIP like Skype or Google gchat. For example, the costs AUD 4.00 Skype for unlimited calls to all mobile phones in Australia or a month. Considering the cost Optus AUD 109.00 per month for the same privilege.
6. Cable television whether it is necessary for your business. Instead have cable TV special in your lobby, it can be a good idea to use preview. Your customers or suppliers who use your lobby would not seek to display complete shows or movies that are broadcast on cable television during their hours.
7. Understand your traffic patterns and what you spend more than your phone company or you know said. Many companies rely on their support to tell them what to do. This is misguided and reflects laziness "> laziness from the person making the determination. Given the choice, a telecommunications carrier will always be you sell a gold-plated Mercedes, if you need it or not, a 50-year lease, which only increases the cost of each year, you can never get rid of, even after the wheels have long fallen. Do not fall into this trap. You make the rules. It's your money!
8. Package your services in something you can explain to the carrier in their terms. Measurement by the dispatch department, type, distance, and unit costs market. Roll it all up from absolute granularity ideal for 100,000 foot level.
9. Identify the minimum level of service that is required to meet the needs of your organization. This does not mean cheap, it means that the combination of services you buy must meet your exact needs, without being either higher or lower than your needs. You do not have to pay for the widgets that you can not use, and you do not want your users to dispense with the services that are essential to the success of your business.
10. Identify the carriers that offer services in places where you indicate a need for service. For example, it does matter if the carrier has XYZ national service for major cities if your primary location is not on their list. Get comps market from reliable sources. Carriers can tell you the best rate is nickel, while others may have to pay a penny, and they can never enlighten you beyond what they need. Other Top End users of the scene probably the best information rate, you can informally exchange. Do not just look at interest rates which are generally followed, but look complete list of services. Recognizing that the largest firms with the highest volume are not necessarily pay the best rates. They often suffer ossified contracts which were postponed after too many "deals good guys" have been cut. Carriers are always quick to include others who are paying more money than you are. Do not worry, they only mention the highest, keeping a bargain private.
11. Invite all carriers to compete for your business that has any chance to win your business. Even if just a single circuit. The more the better. Do not invite the carriers that you would not seriously consider giving their companies, which is called using the "horse stalking. "If you do this, the market does respect you. Do not give a clear advantage while every other carrier does not get. Make it fair. Use an equal footing. Make everyone compete using the same information, published at the same time, and under the same rules. Do not give anyone more time than you could do inside. Open the information of all private carriers, it shares with the minimum number of people required to do the internal work. The more people who know your internal influences, the more they will share it with the market, and not your advantage.
12. Set the pace. Your incumbent will use excuse after excuse to slow down the process. Why Should You help expedite the process, which will only result in their having to write a couple of fat profits they make on your business? This is not a time for nostalgia. Define the terms you, your calendar, and assignment to carriers earn your business. Not in the past. In the present. Once you have tentatively identified a carrier, be sure to find a list of 2 or 3 others who may also suffice. Never tell a carrier that the result is that when you have your contracts signed. It is a very small community of suppliers, and your information will be shared (Again for the worse) if you reveal it before the transaction occurs.
13. Measure and report all of your margin of success to your leaders they can understand your performance.

IT Cost Telecommunication Department

1. Your IT department should implement systems connectivity costs including WAN circuits, T1 type services, and other telecommunications services used for remote office connectivity.
2. Identification of costs – Prepare a physical list of all your data online, circuits, etc., set up for remote office connectivity. Include information that will help you evaluate the service needs for appropriate later, as the location, bandwidth, and the number of users to the site. Create an inventory of all telecom expenses from your recent Carrier telecom invoices. Telecommunications costs can be as high as 1 to 2 per cent of turnover or more depending on the composition your business. Office des Changes, growth by acquisition, and other issues can create situations where there are "ripe" by inspecting what you pay for. Reconcile invoice detail with the inventory list Connectivity created the first step. It is, compare what you think you have what you are getting charged. For large companies or even smaller with many offices, this is no small feat. Then prepare yourself for an intense project or ask for help outside of those dealing with telecommunication bills to live.
3. Total this circuits / lines that are no longer used or which may be eliminated. Measure this and the potential savings you have in reducing the bandwidth some remote office services while providing adequate response time.
4. potential savings are in: lines, circuits are no longer used or needed, the ability to consolidate services to remote operation, the ability to reduce the bandwidth while maintaining acceptable processing speeds.
5. At high growth companies with many offices often have services in place or more dormant capacity necessary in many places. Also, if you're not reconcile your invoices related to the data, you almost always overpay.
6. There are many companies that focus on the identification and recovery of costs for your business. One advantage is that these companies pay a tax or is based on the results of the dollars recovered or saved. His approach contributes to a society in three ways: the analysis of past charges and recover overpayments. This may extend to one year or more of overpayments and may be a tangible amount depending on your environment and historical society, reviewing contracts and negotiating with suppliers to determine appropriate use of contracts, evaluation your current telecommunications needs and recommend cost effective solutions.

Heating and Air Conditioning

1. In many parts of the world and in Australia, especially during the summer the temperature rises to soaring limits. It may be a good idea at this time to harvest solar energy and use it for your heating and cooling needs. Government also provides many incentives and rebates in transition towards the use of solar energy.
2. During the warm season, it can be a good idea to change your work hours so that employees in certain sites and factory area where the temperature rises to levels well levels can start early and finish before the temperature rises. Alternatively great work can take place during the night.
3. Install fans ceiling, if possible. This was the method used before air conditioners come. This is a great way to save on heating and cooling costs.
4. Open the windows. Unfortunately, in many office buildings, it is not possible to open the windows because it was sealed off. These buildings are reliant on electricity to maintain the temperature inside and lighting needs. Arranging necessary to open the windows not only reduce your heating costs, but also lighting.
5. If your heating system system works by gas, you may be able to talk to your service provider and ask for a stay during the warmer months. This will help you save on fixed costs. If this is not possible, you may be able to sign a wage that you use the package.

Electricity

1. effective use bulbs. Even the government provides many incentives and rebates reducing overall costs of these energy saving bulbs.
2. Install systems and methods where the bulbs in some areas are off automatically. I have seen in some areas where security lighting or lamps are lit at night and forgot to be off in the morning. Having a system which switches off the power of these lights or safety during the day and makes the system automatically saves considerably on electricity that lights consume an enormous amount of electricity.
3. Application and train your staff to stop and spend all electrical equipment and laptop computers before leaving office at the end of the workday. Much people do not turn off electrical equipment and laptops when not in use. The main reason for this may be practical for them, but not now. routine checks should be made to ensure that this policy is followed. This not only electricity, but also reduces the risk of electrical fires when staff is not available to treat them.
4. Application and train your staff to use electricity only when absolutely necessary. Many offices may use natural light during certain seasons and times of the day. This is also true when you open the window to regulate your internal environment and temperature.

Water

1. In some areas of work the workers have a shower before work or after completion work. Where showers are provided for use shower kits reduction. Again the shower these kits are provided by reducing the government and if are not many incentives are available for use.
2. Demand for and educate your employees to limit the time to shower.
3. If your toilet and do not have two convenient buttons for half flush and full flush or change to install. This will save the quantities substantial water during the year or on a long term basis.
4. Gentlemen's toilets should be equipped with urinals appropriate. This prevents the water again be thrown into the toilets and commodes.
5. Wherever possible the use of cubic economy water in the urinals. This is a new invention if you do not use water as the cubes are able to purify the environment and urinals using chemical odors and killing bacteria.
6. Use automatic shut-off after breaking up a limited amount of water. It's a good idea if you have people to wash their hands in public restrooms. If more water is needed all you want is to press a button. The top use of excess water and drain.
7. If possible use disinfectants for the hands without water.
8. Repair leaky toilets and faucets.
9. use of mulch and other water systems discount lawn office systems such as drip and providing additional shades to reduce evaporation.
10. Reducing the duration of the watering and the number of days that you do every week.
11. If your company uses water-filled tanks in open use blankets to provide additional shade to reduce evaporation. Some companies have swimming pools in the activities recreational buildings that may require the same treatment.
12. Learning to rainwater and storing them in huge tanks. You can use this and save a ridiculously high amount of cash you spend on the water.

Entertainment

1. Stop providing free tickets and corporate boxes for many sporting events or other functions and activities.
2. When members of the senior levels of the food and entertainment allowances set daily limits.
3. Although staff may have under food and entertainment allowances have a clearly defined policy on how money can be spent and for what purposes it may be spent.
4. Demand for and educate the staff not to order food for delivery or room service.
5. The company must have a system where the staff member first uses his personal credit card for food and entertainment which will then be reimbursed by the company on actual bills. If the staff member is unable to provide the appropriate documents to support and bills or spent on items which are not allowed by company policy that payment will be withheld or paid net.
6. Stop buying or streamline purchasing newspapers, magazines, periodicals and books for the management and staff to browse and enjoy during office hours.
7. Do not order fresh flowers for every manager office. You can use fresh flowers at the main reception or lobby area and even better if you can use natural-looking artificial flowers and floral arrangements that are kept clean and free of dust.
8. If the company provides annual trips to all staff, it must be provided on the basis of cost reductions or profit improvements during the year. For example, you may be able tell your staff that if some costs are reduced by 20%, they would be rewarded by this particular business trip. If this is not the case you do not spend that money. However, if the staff is able to reduce costs as requested, you win anyway
9. Some companies have the habit of taking their key management in exotic locations in remote areas for a few days to reflect and develop business strategies. Although I do not condemn this great idea, it may be better to reduce costs by having fewer days with a tight schedule and fewer trips to do.

Purchase of assets and their use

1. Of many departments buy new furniture and equipment in case of need or if within a limited budget, without thinking further. Before you decide to buy new elements to consider carefully the furniture and equipment that can be in your storage space. This is quite possible, when facilities Many organizations today closedown and empty of furniture and equipment storage facilities. To do this effectively but you would need the support of Your personal account which must keep track of all fixed assets and have full control of his movement.
2. Before purchasing assets, it may be a good idea to ask other departments or other strategic business units if they have such active and you can buy them reduce costs, or perhaps even share them. This will not only save money for your department, but also to help Ministry of sale or sharing service to reduce its own costs.
3. If you're a small business startup, you may be able to buy most of your assets in the garage sale or auction closedown. Even if you had to spend a little more about the restoration and cleaning you would be able to save a lot about them.
4. Another option that most companies now consider buying auctions Online stores like eBay.com and overstock.com

 

Food and Beverage

1. Reduce variety of coffees, tea and milk purchased for personal use. Many companies have used to buy different types and brands of coffee, exotic and different blends of tea and milk to meet the whims of each and every member of staff. When do this the company will incur additional costs in the purchase of small quantities of a wide variety of items. You may be able to ask for suggestions from staff before making the transition. reduction of variety at all professional levels.
2. Have always be limits to individual orders. Do not buy large quantities or in bulk. Only buy what is needed for perhaps a week or two. This will not only reduce theft, but also the deterioration is quite possible that certain foods and beverages have expiration dates.
3. Remove some of your food and drinks lists such as free cookies, fruit, soft drinks and sodas for your staff.
4. Install a system for purifying water for drinking water rather than ordering bottled water. Maintain cleaning system in good condition.
5. If your company has a tradition of offering the free breakfast at certain days or a barbecue, it is a good idea limit the number of days it takes a month. Also have a fixed limit on how much can be spent on these occasions.

Automobile and related costs

1. Ask your staff to always take into consideration is this trip really necessary? "When they ask this question, they may be able to consider other options such as sending the product or packaging by a courier, delivering it to the place indicated on their way home, etc.
2. Request staff to work together to consolidate trips or reduce the additional trips made during the day. I saw people from different departments travel to a site particular, at the same time in different vehicles. The worst of all you will see that each department has its own vehicle for such trips. Not only will see what happens between departments, but you'll also notice this in the staff working in a particular department. Staff can go to a particular place, but they have no intention or provide moments together so they can be able to do so by sharing a trip. For example, for particular staff member may leave at a customer location, at eight hours and another member to leave 10 minutes later to a place in the same way. Of course, I understand that this is not possible all the time. But what is important to note is that currently there no active method of planning and organizing visits to workplaces.
3. Always check tire pressure for your vehicle. Check candles. Use new or quality oil for vehicles. All these measures will reduce maintenance costs and operating expenses.
4. Consider keeping a journal and track how often and how far you drive each vehicle business. This way, you'll be able to negotiate reduced insurance.
5. Less drive also saves the cost of maintenance, Tires, supplies and fuel.
6. Demand and staff education to change their driving style to be ideal speed and less aggressive driving. This again would save on vehicle maintenance, supplies and fuel.
7. Staff travel long distances that must be given or advanced driving lessons. Accidents happen that can cost the company lots of money and the lives of personnel. Putting limits on the amount of driving hours allowed during a period of 24 hours.

Staff costs-Getting more without additional costs

1. The productivity of factors obviously one way any manager can accomplish more with existing resources is to improve the productivity of these resources. Improved productivity your staff is an ongoing effort and one that is important for the employee, your company, and for you as a manager.
2. Train and develop your target employees training opportunities specific to each employee who helps him do more. Training can be internal programs minimal cost for anything other than the time one of your executives. Or you can use programs from external suppliers who can teach employee-specific skills that enhance its production capacity.
3. Coach and focus employee efforts-Too often we allow our employees to "find their own way." Be more active in the delineation of staff responsibilities, focusing their efforts on important tasks, and coaches for greater productivity is a good thing. Expect higher productivity and you'll often get it.
4. Give them tools-Our employees want to be productive and product quality results. Invest in your employees by giving them tools that increase productivity.
5. improving the quality of the program-often Incorporate employee productivity is hampered by the poor quality of the delivery of their efforts. More than not, they can not see problem is the "can not see the forest for the trees" issue. For example, if your programming team to correct many problems that are discovered after software enhancements are put into production, you have both a problem of customer service and a productivity problem. Each Once I set up a program to improve the quality, I met resistance from people my superiors. It after showing them the figures before and after the program as they really believe it improves the production team.
6. Provide additional incentives for more work in some situations you have a lot of delay, need to reduce the backlog, but do not want to hire more people. To tackle the problem, the staff offers incentives to work on additional projects "on their own time, "which meant outside of normal hours. This type of program can be very effective, but must be careful to avoid creating the impression you pay for overtime. schedules get overtime, not professionals. You also only want to authorize the additional work those who do an acceptable job, in other words, how to qualify for the work incentive is to do your normal work as well. Use program like this that stepwise short, say three to five months, compared to what it can become a regular work schedule.
7. The factor of perception - Improve your employee productivity can actually be achieved by changing the perception of productivity team. I do not advocate any type of deception, but there are things you can do for the team seem to be more productive.
8. Organize Client Services-Creating a structure and implement the processes that contribute to your employees quantify the problems, implement changes in an orderly manner, an escalation of appropriate questions, and followed consistently. Improve customer service team will automatically appear to be more productive.
9. Manage customer expectations of your ability-If your team is overcommitted to the capacity of what they can offer, the natural conclusion will be that they are not getting the job done. Manage your customer's expectations of the real capacity of your team to deliver and it seems that the team is more productive. We should be managing this way anyway, but it is easy to get overcommitted.
10. Filter the backlog of your department, consider requests Upcoming speakers in your department. Quite often, requests are made for items that are unnecessary or that do not provide the actual value of the company. Reducing the backlog and establishing more stringent approval requirements for new applications may create a perception of improved response.
11. More Communicate, communicate the status of outstanding issues more than you have been. Nothing makes a customer feel more frustrated with not knowing the status of a support issue or request pending. Keep your customers and users "to light" creates a feeling of being more productive and improve customer service.
12. Over deliver, coach your staff to take additional measures to support your stakeholders. Little extras go a long way towards improving service, and more satisfaction creates an image of the responsiveness and productivity.
13. Submit your achievements Team You might be surprised how we all forget what we do every month. It is so easy to get caught up in day to day issues and problems you forget to think about things that have been conducted in the past. Start tracking your team's achievements and publishing highlights month. If we forget what we do, I can assure you that customers do not know everything we do. Share this knowledge with them, and you can see that customers are really interested and that their point of view of how you handled your department or business unit goes to up.
14. Before you start trying to improve the productivity of your staff, conduct an assessment to determine how they are already productive. If possible, establish a baseline and measure improvements as you implement specific actions that either improve the actual productivity of your team or the perception of its productivity. Capturing real data in key areas will help support what is really going on.

 

 

Conclusion

 

The the more you understand the power of this list, the more you realize that you need hand over all the other ideas to benefit your business. Go to href = "http://www.profitmaps.com.au/"> www.profitmaps.com.au to obtain and use a 5 step simple process that can do for your business.

As mentioned every idea has the potential to increase your net profit margin by many% points. Research shows profit increase by 4% -56% and reduce costs 18% -37% within 2 years. Usually, a reduction of 5% of the cost of performance is sufficient for most loss-making enterprises.

To get the maximum benefit and ensure that measures taken to improve your results online results, you need a structured methodology or a process on a permanent basis as suggested in Step Process 5 href = "http://www.profitmaps.com.au/"> www.profitmaps.com.au.

About the Author

Skanda Kumarasingam was senior manager and professional primarily in general management and management accounting roles either with profit centre responsibility or in supporting senior managers with profit responsibilities. He has held management roles in KPMG (Audit and Consulting), Coke (Regional Internal Auditor and Leader- Financial Impact Teams in the Asian Region), PepsiCo, Marks and Spenser (UK) , Gap(Singapore), Next (Singapore) and Ernst and Young (Business Training Centre- Kingdom of Bahrain). Skanda has over 15 years experience in senior management and professional business training roles.Go to www.profitmaps.com.au to see more powerful ideas such as these.

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