Money Matters on Business

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There are various types of business costs, which depend on the nature of the business. Certain activities such as auditing and consulting services result in lower costs compared to companies engaged in manufacturing and trading.

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Reducing operating costs is not a difficult job. For illustration purposes, assume that we are discussing about the company that sells goods.

higher costs of trading concerns are as follows:

1 Purchase of shares
Second Payment of freight charges for bringing the inventories
Third Payment of salaries and wages of employees
4th Electricity and water costs
5th Telephone and internet access costs
6th Discounts given to customers
7th Advertising and marketing expenses
8th Payment of various types of tax authorities
9th Transportation and delivery costs of stock
10th Office supplies

the following three ways you can significantly reduce operating costs.

1 Monitor your inventory stock.
Trading companies usually have more shares because they expect more sales. This usually happens during the holidays such as Christmas. While a fresh inflow of goods is important to occasionally take steps to identify slow moving stocks. Create an event sale and dispose of them at a discount. In this way, they can generate extra income that can be used towards meeting other expenses.

At the time of procurement of goods, you should be careful in choosing goods that have better marketability. Research and to test the market first, so you end up with tons of slow moving items. Look at your competitors and see which items are selling fast.

2 Cut the overhead expenses.
Reasonable use of telephone, internet, water and electricity will significantly reduce costs. Turn off utilities after hours. Proper supervision should be applied when using the telephone and the Internet in particular by the employee. Use electric fans instead of air conditioning during non-peak hours. Switch on the inverter devices such as air, because they spend a smaller amount of electricity.

3 Follow promotional costs.
Review your ads in newspapers and television stations daily. Find out what someone is doing, but that does not work. Stop those advertisements that are not effectively pulling in more customers. Ads in brochures and leaflets are generally not effective. People just throw them. However, adding a discount coupon on the flyer could get a better positive result. Test your marketing efforts.