Simple Business Solutions Blog

Reduce Small Business Operating Expenses

Maximize profit. Reduce expenses to increase cash flowThe impact of cost reduction is rapid and significant.  Every dollar of cost savings goes directly to the bottom line of your business. If your company operates on a 25% cash flow margin, every one dollar saved through expense reduction is worth four dollars of extra sales.  In other words, if ten thousand dollars in cost savings were identified during a cost reduction analysis, your company would need to grow revenue by forty thousand dollars to achieve the equivalent increase in cash flow.

For many small businesses, such an increase in cash flow (through incremental sales) is not feasible to achieve as quickly or easily as it is through a cost reduction analysis.

Small Business Cost Reduction Methodology

1 Compile Business Expense Statements

Simple identifies the business operating expenses and information required to complete a comprehensive cost reduction analysis on your company.

2 Analyze Operating Expenses

Simple analyzes all aspects of your business in order to maximize your cost savings.  Cost savings are achieved through:

  • Process, system, or technological improvements
  • Behavior modifications
  • Correction of billing errors
  • Elimination of overcharges and/or unnecessary services
  • Rate reductions from current providers
  • Savings from alternate providers

Areas of the cost reduction analysis include:

  • Advertising & Marketing
  • Telecommunications
  • Merchant Services
  • Business Insurance
  • Human Resources Administration
  • Operational Costs
  • Legal & Regulatory
  • Finance & Accounting
3 Present Identified Cost Savings and Recommendations

Upon completion of the cost reduction analysis, Simple will meet with you to review the identified cost savings and provide a plan for implementing the cost reduction recommendations

4 Implement Cost Reduction Recommendations

Simple will assist you in acting on these cost savings opportunities. In many cases, you can appoint Simple to act on your behalf to implement them. See why you should use Simple Business Solutions to Cost Cut >>

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Redding, CA 96001

(530) 262-6060
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