Traditional Culture Encyclopedia - Traditional stories - How businesses can save money
How businesses can save money
How does a business save costs? \x0d\\ general source of costs of business operations will have two parts, one is the explicit operating costs, the second is the implicit cost of capital. \x0d\1. Minimize fixed costs, the focus of reducing fixed costs is as follows: \x0d\(1) Liquidate ineffective assets, liquidate assets that are not involved in the production and operation activities \x0d\(2) Necessary fixed assets are used as much as possible through renting and other means, turning fixed cost expenditure into current cost expenditure. \x0d\(3) Analyze where your strengths lie and outsource production processes that you do not have an advantage in as much as possible. \x0d\2. Minimize current costs and accelerate turnover \x0d\(1) Reduce material costs \x0d\(2) Reduce personnel costs \x0d\(3) Reduce accounts receivable \x0d\(4) Rationalize the cost of technological innovations \x0d\(5) Reduce management costs \x0d\3. Strive to utilize the upstream and downstream funds \x0d\(1) All costs to be expended on assets are prepaid by upstream suppliers as much as possible, and strive to pay after one turnover. \x0d\(2) All revenues are required to be pre-paid by the buyer for orders or collected on pre-sale accounts wherever possible.
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