Expenses > Income

Discussion in 'Business & Economics' started by naturallygorg, Sep 6, 2016.

  1. naturallygorg Registered Member

    Messages:
    19
    This year is not a good one for our company. Our expenses are getting higher. So, we want to start immediately with our cost cutting campaign. We'd like to prioritize our electricity and telecommunication expenses and the rest are to follow. We might be forced to decrease or cut some of our mobile postpaid plans for some of our staff. I'm sure a lot of them will react negatively.

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    Anyway, I hope you could share some of your cost cutting strategies and hopefully we could get add more to our campaign. Thanks.
     
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  3. deepslate Registered Member

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    I think you better hire someone that could manage your telecom expenses, if you have the budget you can get a telecom expense management company to do it for you. It would definitely improve your organization's processes and produce well-documented savings.
     
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  5. cosmictraveler Be kind to yourself always. Valued Senior Member

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    Do as many other companies do, raise the costs of your products.
     
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  7. Baldeee Registered Senior Member

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    863
    What sort of business are you, by which I mean are you sure that electricity and comms the best place to start?
    Are you sure that everyone is making full use of their time?
    Is the issue simply that you're not selling enough, in which case you'd be better off hiring new decent sales people?
    Are you prices too low?

    Of course businesses should cut costs but only to achieve a lean operating model.
    Cutting too deep in the wrong places could cripple your business.
    Cost cutting should just be one element of a business turnaround, and don't think of it as cutting cost but of streamlining processes.
    The streamlined processes is what you're after, and by doing that the costs should reduce.

    But you have to ensure that you have a viable business strategy in the first place.
    No amount of cost-cutting will help if you're not selling enough, or even if you're over-trading.

    So what are the actual issues?
    Cash flow?
    Lack of sales?
    Expenses too high - and if so are they fixed or variable costs (i.e. should usage go up and down with sales volume, or will they likely remain static irrespective of sales volume?)?
     
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  8. naturallygorg Registered Member

    Messages:
    19
    We figured out what the problem is. We did an audit and it seems like the person in charge of telecommunication billing is manipulating the bills and he's pocketing the rest of the cash. For now my boss said to focus on converting EDI invoices so there's no paper trail.
     

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