Reducing waste is a paramount to any business, especially the small ones. You want to drive down cost to increase profits. However, there are many areas that are overlook when running a business.
I will share some waste and how to reduce or eliminate them completely.
1) Cash Flow, Sales and debtors analysis (invoice)
Check your cash flow and sales daily and debtors invoice note. This will help you to know what is in the bank and what is left to be collect from the debtors.
2) Expenses.
Monitor expenses, especially cheques paid out to buy resources. For example, you might think you have let say £100,000 in your business bank account but the actual amount comes from substrating the cheques you pay out from the money in the bank. Most of the time we forget that we pay out some money with a cheque. Especially when you don't write it down (on the small note area of the cheque to remind you) before you gave the cheque to the person you paid. It is really important to check this because as you know already the money does not leave your bank account until later when the person decide to pay the money in plus you need to add the clearing time from the bank before the cheque is actually taking out of your bank account.
So checking really carefully will help you a lot.
3) Paper and printing equipments.
Put a sysem in place where you monitor and make sure your staff know what they are printing before they print. Calculate what each paper cost you in printing, that would help you to cut down cost of printing by using like printhead that would last long and works out cheaper for your business.
Also check out the advise at http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1079438575&type=RESOURCES
4) Shop Around.
To save money on office resources or raw material, you need to shop around to get good deals. Although, you might save it will take me lots of time shopping around to get the best deal online. However, there is now an Application that you could use to save youself time and money called "MY SHOPPING GENIE". You can go to www.myshoppinggenie.com/amola to get yours absolutely free. Or click the side banner.
