It is well known that UK Chancellor George Osborne is determined to turn the North of England into an industrial power house, primarily by driving investment in depleted regions and affording local authorities greater power within their area. While this plan has yet to have a definitive impact on the UK economy, it is at least creating improved business sentiment in Northern regions, with confidence expected to be higher in Yorkshire than anywhere else in the UK during the next six months.
The Importance of Individual responsibility: How cost management can make your business successful
While external factors always impact on specific markets, regions and businesses, it is also important that firms assume responsibility for their own destiny. This is particularly true in the current economic climate, which is increasingly volatile and vulnerable to the threat of a worldwide recession. With this in mind, the best way to safeguard your business and its future growth is to implement stringent cost management measures in 2016, as you look to optimise profit and create a more sustainable model for the future.
Here is how you can achieve this: –
Focus on reducing all Unnecessary Costs
Before you begin to focus on the important aspects of funding your business, it is wise to eliminate unnecessary and excess costs that inflate your annual budget. Take energy consumption, for example, which includes all utilities such as gas, electricity and water and can quickly spiral out of control if it is not managed carefully. By partnering with forward thinking firms such as United Gas and Power and accessing technology that enables you to monitor and reduce your energy consumption on a daily basis, you can save money and create a leaner business model.
Distinguish between strategic and non-strategic costs
This is the next step for any cost-conscious business, as there are many types of expenditure that underpin commercial activity. While some of these are strategic and crucial to the growth of your existing business, however, others are entirely non-strategic and relate to the operational procedures that drive production. While both of these are important, it is strategic costs such as those relating to marketing and sales that must be given priority, as you look to save money on the day-to-day manufacturing and distribution of products (without impacting on quality, of course).
Consider creating a flexible and project-driven workforce
Time is money for any business, and there is arguably nothing worse that employing a large team of staff to manage a disproportionately small volume of work. While firms historically maintained a vast payroll in order to cope with busy periods, this is extremely costly and wastes valuable capital that is at your firm’s disposal. Instead, it is far better to invest in remote and Cloud technology that enables you to employee freelance staff members on a temporary basis. This not only leads to annual wage savings, but it also ensures that you have access to the best industry talent according to each individual project.