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-   -   What Cost Reduction Techniques Does Your Small Business Use? (http://www.smallbusinessbrief.com/forum/showthread.php?t=43033)

AngelBiz 21st August 2011 10:34 AM

What Cost Reduction Techniques Does Your Small Business Use?
 
Small business owners need to use a systematic approach to reduce cost in small business while still keeping your foundation intact allowing you to take advantage of the upturn in economy when it happens. Earlier we suggested that you should take surgical knife approach to cost reduction as opposed to using machete.

By applying this approach your business may come up with tactics that will be different from some other type of business. You have to tailor the systematic approach to your business and situation. However, there are common tactics that can be employed by almost all types of businesses. Below we describe those techniques categorized by stages in the cost reduction approach.

Read more - http://www.angelbusinessadvisors.com...siness-owners/

What other techniques have you used to reduce cost for small business in a prudent manner?

DeniseTaylor 29th August 2011 01:41 PM

One technique we use is to employ the 80/20 rule. This strategy has many applications and can be used in countless ways.

But this context, one spends the majority of one's time doing things that get results that matter to the majority of one's customers. Instead of taking on projects that can consume lots of manpower, without knowing if it will result directly in sales or improvement, one finds ways to combine efforts or make those efforts work in multiple ways.

For example: instead of creating a whole new marketing program which may or may not be effective, one would combine those efforts with other activities so that ones eggs are not all in one basket.

Another example is to get staff mutli-tasking and multi-hatted, where possible.

As I said, this can be applied in many ways, but a very brief way of saying it is to work smarter, not harder.

AngelBiz 30th August 2011 08:23 PM

Quote:

Originally Posted by DeniseTaylor (Post 150805)
One technique we use is to employ the 80/20 rule. This strategy has many applications and can be used in countless ways.

But this context, one spends the majority of one's time doing things that get results that matter to the majority of one's customers. Instead of taking on projects that can consume lots of manpower, without knowing if it will result directly in sales or improvement, one finds ways to combine efforts or make those efforts work in multiple ways.

Denise - Good use of the 80-20 rule. It's amazing how this rule can be applied in multitude of situations.


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