Date: 20th May 2019
In the life of a Business there are times when you may want to reduce expenses.
Perhaps you have an unexpected short term reduction in revenue, a new competitor putting pressure on your margins, changes in seasonal trends – and so on.
Here are some ideas on action you could take to counter market conditions, and maintain profits in difficult trading conditions.
- Budget – create a new one and stick to it
- Reward responsible spending – rather than penalise bad spending
- Bank – re-negotiate terms and conditions
- Review location costs – rent, labour, tax
- Review your admin and book keeping needs. See www.mrstradie.co.nz for cost effective, professional and efficient services.
- Review marketing programmes and evaluate use of new techniques such as Facebook, Google and Websites – see www.totalbrand.co
- Re-negotiate or shop around for new suppliers of services (insurance, energy, stationary, communications, IT).
- Instigate a key staff retention programme – www.humanconnectionsgroup.com
- Early payment discounts – pay your bills on time
- IRD – do not get a Red Flag – it could be expensive
- Review operational procedures – look for improvements and efficiencies
- Make sure you are collecting data on your key relevant metrics – to ensure you make good decisions based on data not a hunch.
Get in touch with me to sit down and discuss your business over a coffee.
BOOK YOUR FREE 1 HOUR CONSULTATION & FOLLOW UP REPORT
P.S. This article is part of my Secrets of Success series, aimed at helping business owners and entrepreneurs with some of the key components of business success. The insights I wish I’d had at the start of my business career. I hope that by passing on these little gems of knowledge I can give you some support and help you along the pathway to growth and prosperity.
Posted in: Secrets of Success Blog