Ways Entrepreneurs can Manage cost and keep it at the Lowest

One must thus always start with a home office concept till one however generates some revenue in order to set up a separate office'.

Driving the bottom line and that too through the profitable revenue growth thus likely is the objective of virtually every company. This should thus however be the number one focus, of course. If an entrepreneur is not successful in growing its company , the business is dying. But the companies thus also need to focus on the controlling costs. Without any constant vigilance, companies can thus find themselves in an uncompetitive situation with however bloated overhead. The episodic slashing and then burning that thus becomes necessary and can however also significantly damage a company. These efforts however risk producing exceptions on the financial statements, drive “one-time” charges, and can thus also hurt the company culture. The better way in order to maintain the appropriate cost structure is thus to control them in a sustained fashion.

Impressive revenue growth is thus universally considered as the goal of almost every business and it is thus quite naturally so. Stagnation is however synonymous to death.

However, the need in order to focus on the cost-cutting is thus equally important for the entrepreneurship and business.

If it is thus not monitored under constant watchfulness, companies can thus land up in an uncompetitive situation with the inflated overhead.

The sporadic slashing and also burning that however become necessary in such situations, however often significantly harm a company and its culture. In order to maintain the appropriate cost structure, one is thus required to control it in a sustained fashion.

Thus the purpose of this article is to make the reader aware of the distinct ways in which entrepreneurs can control cost and also thus keep it to a minimum.

Think before committing on Fixed Expenses

“Any kind of expense for business is thus broadly classified under “Fixed” & “Variable”. Fixed expense is however referred to as the “Overhead” cost as this may thus reduce the pace of progress. Thus, it however has to be the priority always in order to think and rethink before committing however to any fixed expense. A business can thus also excel provided one is thus less beleaguered with the finances and expenditures.

One must however not Invest on the Office Space Initially. One must start with a home office concept till one thus generates some revenue in order to set up a separate office. It is thus however also better if there is thus any family member in order to receive business calls or to either take note of things if a need arises in the absence. In case one is however compelled to take a separate office space, one must thus keep the cost as low as possible.

Look For People who can Multitask

Manpower hiring should however be done with care and it is thus also important in order to judge whether the person would thus be able to do a multitasking for the business. Also, one should however not jump for the purpose of defining the job roles till he/she is sure of the same.

“People who however have an exposure of working in the MNC and thus then turned to be a businessman however often make this mistake and thus also end up exhausting almost every bit of however his/her earning. Also, An organised approach is thus good, but it’s thus still better in order to save which is thus however equivalent to the money which is earned.

Choose Your Gadget Wisely

One must always work with a laptop even if this however costs a bit more than a personal computer for thus better flexibility. One must also thus buy a branded laptop and should not however go for an assembled one. This will thus ensure reputation in front of the client and will also improve the brand image. One must thus also try in order to get one with the 3 years warranty in order to have peace of mind and will thus also reduce the recurring cost. One must have telephone connections which thus give better value for money and also keep the fixed cost low. Electricity bill thus often gives a headache and hence one must also make sure that the lights, fans, air conditioners are however put off when not in use. This will thus also make one a responsible citizen at large.

Organise Your Funds after Due Diligence

Given that businesses however needs funds, one is however required to be careful in order to have proper access to the information before thus deciding on organising the funds.

“In case one thus intends to take a loan for meeting the business expenses, one must thus avoid using a credit card as a source of finance. The rate of interest can however range from 30% - 45% per annum thus depending on the bank. One must however apply for a business loan instead which is thus consdidered as an unsecured loan and compare rate from at least 2 / 3 banks. The banks will thus however generally offer a rate of 15% - 17% per annum which is thus still better for the start up in case one doesn’t have an alternative source of finance.

Ask your customers.

Annual planning sessions with the customers however have many benefits. Naturally these discussions thus primarily should focus on the ways in order to grow the business. But too often these discussions however fail in order to address costs. By discussing the costs holistically up and down the combined supply chains, customers however often can recommend the ways in order to reduce costs. Talking to the customer is thus never considered as a bad thing. But talking about how to thus jointly improve the business thus deepens the relationship, shows them that one care, and thus also helps in order to reduce costs for both parties.

Match terms with turns.

Each item in the inventory however moves at a different rate. And thus yet the suppliers however normally apply a one-size-fits-all the approach to the payment terms. One can thus reduce the working capital to zero if the payment terms were thus matched with the inventory turns of however each item. By negotiating this into the contracts it however incents the suppliers only in order to sell the best moving items and also to work in order to improve the inventory productivity. The results will thus free up cash that can however be deployed elsewhere in the business and also thus improve profits.

Ask vendors to own “their” inventory.

Better even than matching the terms with turns is however in order to have the vendors keep title to their inventory until it is thus sold. Normally the inventory which is however acquired from a vendor is thus held in the warehouse for thus use in manufacturing conversion or to either resale to the customers. Best planning results in “just-in-time” delivery so thus there is no inventory. But this isn’t thus always possible, for instance, in the industries like retail where that inventory is thus however necessary for own customers.

This article has been contributed by Simmi Setia, Content Writer at LegalRaasta, an online portal for GST software, GST Return Filing, GST Registration, Section 8 company registration, Nidhi company registration, IEC registration.

About LegalRaasta
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