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When things are going well and the profits are pouring in, then perhaps a focus on cost savings doesn’t have to be at the top of your priority list. Most companies though, in these days of slim margins, need to pay attention to areas where savings can made. Here are some ideas for places to start looking.<\/p>\n
Negotiate Better Terms With Suppliers<\/strong><\/p>\n At least once a year you should sit down and review the payment terms your regular suppliers are offering you, and ask for better ones. Early payment discounts can be very valuable, as can quantity price breaks. If your cash flow is reasonable, consider ordering bigger quantities less frequently, and ask for a discount. If you are borrowing money, take care that you have the best rates available, and if your loan is in good standing, don’t be afraid to go back to the lender and ask for better terms.<\/p>\n Outsource Where Possible<\/strong><\/p>\n If you only need three quarters of a person, say, to deal with salaries and wages, then outsource the work, rather that under-employ a whole person. If you have a short term project, it makes sense to outsource rather than employ someone only to have to let them go when the project is completed \u2013 which might be easier said than done. Focus on your core competencies, and let other experts do the rest.<\/p>\n Use Space To The Maximum<\/strong><\/p>\n Do you have spare office or warehouse space? Perhaps you’re planning on expansion eventually, but in the meantime, can that space be rented out? Perhaps you could trade services, for example, rent an office out to a marketing expert in exchange for marketing services. Or perhaps you have a store that can accommodate a store within a store; this can be a great way of attracting more customers for both enterprises.<\/p>\n