Why 9 in 10 Businesses are Overspending on Day-to-day Expenses
August 31st, 2008Experts estimate that 90 percent of Australian businesses are overspending on day-to-day expenses, by as much as 75 percent in some cost categories!
Looked at the operating costs of your business lately? You might be surprised at the savings that can be gained with a systematic approach to cutting costs.
The easiest way to lift profits is to cut the fat out of costs. Cost-cutting and profit increases can amount to much the same thing if handled correctly. Cost-cutting does not necessarily mean slashing and burning budgets on a ‘let’s-see-if-this-works’ whim, nor does it mean the intense scrutiny of entertainment expenses in August, before reverting to three-hour lunches in December.
But what if a company could save 20 percent a year on its stationery spend? Or 26 percent a year on its courier costs? Or 76 percent annually on its printing bills?
Wouldn’t that represent real savings - and an increase on the bottom line?
The truth is that a significant cause of poor business performance in Australian companies is the lack of attention given to the cost of running the business.
The reasons for this lack of attention are many, but here I am going to focus on three of them:
Tags: business, cost, costs, expense, finance, managment, Money, operating, reduce, reduction, save