Simple Business Solutions delivers exceptional outcomes by applying psychological principles, market research, and creativity. What can we help you achieve?
Cost Reduction Analysis
Imagine what you could do with thousands of dollars added to your bottom line. Our cost reduction analysis identifies all the ways to save your business money. See how to reduce cost and immediately increase cash flow.
Cost Savings: Rapid, Significant Impact
If you operate on a 25% cash flow margin, then every $1 in cost savings is worth the same as $4 of revenue. In other words, if Simple were to identify $10,000 in cost savings during your cost reduction analysis, you would need to increase sales by $40,000 to achieve the equivalent increase in cash flow.
Simple Business Solutions generates thousands of dollars in annual cost savings for businesses. Simple's cost reduction strategy experts perform your comprehensive expense reduction analysis with no guarantee of compensation. Simple earns its share of the cost savings only when realized by your business.
Cost Reduction Strategy: The Cost Reduction Process
As mentioned above, if you operate on a 25% EBITDA margin, then every $1 in cost savings is worth the same as $4 of revenue. Therefore, every cost reduction strategy that’s plausible is worth exploring. As such, below you’ll find the steps involved with a sound cost reduction analysis that could lead to an increased bottom line for your organization.
Compile Business Expense Statements
Simple identifies your business operating expenses and gathers information required to complete a comprehensive cost reduction analysis. This may include invoices, contracts, and other documents pertinent to the expenses to be analyzed. If it impacts your P&L or balance sheet, we analyze it carefully.
Analyze Operating Expenses
To maximize cost savings, Simple Business Solutions analyzes virtually every aspect of your business overhead, including, but not limited to:
- Marketing and advertising expenses
- Telecommunications expenses (landline, mobile, data/internet)
- Merchant services fees (a.k.a. credit card processing fees)
- Insurance costs
- Office machine expenses
- Retirement plan administration costs
- Waste and recycling costs
Present Cost Savings and Expense Reduction Recommendations
Upon completion of the cost reduction analysis, Simple Business Solutions meets with you to review the identified cost savings and present a plan for implementing the cost reduction strategy recommendations.
Implement Cost Reduction Analysis Recommendations
Simple will assist you in acting on these cost savings opportunities. In many cases, you can appoint Simple Business Solutions to act on your behalf to implement them.
Cost Reduction Results: $18,000 in annual savings
Furniture and Interior Design Firm in Arkansas
Ways to Save: Simple Cost Reduction Strategy Examples
Simple’s cost reduction strategy goes far beyond conducting a competitive bidding process. Our methodology to reduce costs is far more intense, precise, and detailed. Simple identifies cost savings through these methods, including, but not limited to:
Process, system, or technological improvements
Simple looks at how processes & procedures can be made more efficient, increasing your productivity. Sustained business cost reduction is achieved through gains in efficiency. Cash flow increases when your business collects revenue from customers more quickly because your product/service delivery cycle times are decreased, and customers are happier because your customer experience has improved. We apply our seven step process to keep your business processes lean, mean and profitable.
Simple studies how products and services are used and recommends cost reduction strategy options for you to consider.
Correction of billing errors
While eliminating errors and overcharges is an obvious and common sense approach to business cost reduction, it is also tedious and time-consuming labor. Our vigilance is the key to preventing billing errors, overcharges and ongoing payment for unnecessary products and services. We routinely monitor the prices and terms of your invoices and contracts. We track your vendor contract expiration and/or auto-renewal dates and the terms and pricing that apply upon renewal or contract expiration. Simple identifies and corrects billing errors, then requests credits, and works on your behalf to negotiate better pricing and terms on contract renewals. Cost reduction analysis requires the utmost in diligence, and we exercise that for you.
Elimination of overcharges and unnecessary services
Simple eliminates waste by identifying what you actually use. We'll help you determine whether you are paying for products/services that you no longer need, or that you aren’t using as much or as often as you thought you would. We go even further by helping you consider why you aren’t using the product/service and then assess the likelihood that you will (or will not) use it in the immediate future. Part of every sound cost reduction strategy is not paying for things that do not provide trackable value.
Rate reductions from current providers
Simple works with you to keep your current providers competitive. Cost reduction analysis doesn’t need to be an adversarial process. Instead, we use it as an opportunity to think creatively and collaborate with your trusted suppliers to everyone’s benefit. When we seek rate reductions on your behalf from current providers, we do so in a positive, win/win manner.
Savings from alternative providers
Simple helps you select and manage the best providers for your business in terms of service, quality and cost.
Reasons to Use Our Expense Reduction Consulting Firm
- You may think that conducting a competitive bidding process is all an expense reduction firm does to reduce costs. Actually, our cost reduction strategy is far more intense, precise, and detailed. We identify cost cuts through a variety of methods, not all of which require a change in service provider or vendor.
- Our extensive due diligence process triangulates the best suppliers by balancing quality, reliability, and cost of ownership. The supplier with the least expensive cost may fail horribly in terms of quality or reliability -- the old adage "You get what you pay for" is true. Likewise, the supplier with the highest level of quality and reliability may charge a substantial premium for its service, while an alternative provider may offer a similar level of quality and reliability at a more competitive cost of ownership. Our cost reduction analysis consultants continually scan the marketplace to identify and vet the best suppliers.
- Cost cutting recommendations do not always require supplier changes to implement. If you are happy with an existing supplier relationship, or if there are other business reasons why you desire to remain with a current supplier, our cost reduction strategy recommendations may be implemented by renegotiating with the current supplier.
- Our cost reduction analysis consultants help you quickly implement the cost cutting recommendations. The faster the implementation, the sooner your cash flow will increase.
- Our compensation is tied to your success. We earn based on the amount of cost savings identified for your business.
Beat the Cash Flow Crunch
Simple's expense reduction experts perform your comprehensive cost reduction analysis with no guarantee of compensation. Simple earns its share of the cost savings only when realized by your business. Imagine what you could do with all that money added to your bottom line... Contact us today for a free consultation.