Improving the bottom line of a business is actually very simple as it means impacting just one of two areas:
- Increasing revenues, or
- Decreasing costs.
I said it was simple, not easy! But when times are tough (and when aren’t they?) and you need to reduce your cost of doing business, Brett Hay, a consultant with Expenses Reduction Analysis, says there is a simple 7-step process that can cut costs 10 – 15%. You can read a more detailed description of the process here, but in summary point form, the 7 steps are:
- Analyse your costs
- Where possible, rationalise your purchases
- Benchmark your spending
- Talk to your suppliers
- Beware of buying in bulk
- Manage your people
- Monitor your success
Maybe now is the time to start reviewing your costs and seeing how much your bottom line can improve.
If you would further information on how Avondale Business School can help your organisation, contact Warrick Long
P: 02 4980 2168