An entrepreneur's guide to cutting costs, not corners

An entrepreneur's guide to cutting costs, not corners
Published: 19 January 2012 (1313 Views)
ACCRA - The New Year is full of many opportunities to start afresh in your business, one way in which this can be achieved, is with costs. Uncontrolled costs can be your worst enemy. When left unchanged they run the risk of driving your business into the ground.

How can this be fixed? There is no quick fix, blanket solution to cost issues, these vary according to businesses and their needs and often require custom consultation. To get started however, there are a few easy steps you can take:

1. List your expenses for the last 3 months- Over the last few months, what has your business spent money on?

2. Divide these expenses into recurring and one time expenses and provide descriptions and justifications for each? This will help you to determine future expenses to expect.

3. Divide your costs into fixed and variable costs? Which costs do you incur regardless of how whether or not you produce (for example rent and licensing fees)? Which costs change according to how much you produce?  

Now comes the most difficult part, what can you get rid of? Are there duplications? Are there inefficiencies? As I mentioned earlier the process of cutting costs and maximizing profit is complex and for each business requires a more customized approach. However these steps do serve as a valuable starting point.

Juliana Taylor is the founder of Start Smart Ghana Ltd. She can be contacted on email :info@startsmartgh.com

- www.entrepreneurshipafrica.com

Tags: entrepreneur,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Evan Mawarire talks of 'heartbreak'

by BBC | 18 January 2019 | 15 Views

Open letter to Nelson Chamisa

by Peacemaker Zano | 18 January 2019 | 16 Views

New uniform tickles Zambians

by BBC | 18 January 2019 | 7 Views

Rights group petition Switzerland President to ban Mnangagwa

by Mandla Ndlovu | 18 January 2019 | 14 Views

Government Internet Shut Down Justified

by Gift Mashoko | 18 January 2019 | 8 Views

Africa Human Rights Film Festival

by Agencies | 18 January 2019 | 5 Views

The case for the internet shutdown

by Nobleman Runyanga | 18 January 2019 | 71 Views

Bulawayo activist on Chiwenga's alleged hit list skips the border

by Mandla Ndlovu | 18 January 2019 | 142 Views

Kirsty Coventry speaks on resignation

by Mandla Ndlovu | 18 January 2019 | 166 Views

Belarus deal to make Zimbabwe transport logistics hub

by Staff reporter | 18 January 2019 | 96 Views

Govt, civil servants resume talks

by Staff reporter | 18 January 2019 | 84 Views

9 facts, myths about Zimbabwe mayhem

by Tichaona Zindoga | 18 January 2019 | 74 Views

Riots aftermath: Who pays the reconstruction bill?

by Staff reporter | 18 January 2019 | 54 Views

Massive job losses, Bulawayo worst affected

by Staff reporter | 18 January 2019 | 63 Views

Bosso players to undergo medicals

by Staff reporter | 18 January 2019 | 43 Views

Mutsvangwa calls for laws regulating social media

by Staff reporter | 18 January 2019 | 52 Views

New transport fares announced

by Staff reporter | 18 January 2019 | 76 Views

Chamisa told to put national interest first

by Staff reporter | 18 January 2019 | 38 Views

MDC perpetrating violence, violating human rights

by Anesu Pedzisayi | 18 January 2019 | 51 Views

Government orders schools to open

by Staff reporter | 18 January 2019 | 62 Views

Jonathan Maphonjwana Moyo 'kills' wife, daughter, hangs self

by Staff reporter | 18 January 2019 | 66 Views

'Chamisa's MDC liable for stayaway damage'

by Staff reporter | 18 January 2019 | 53 Views

St Faith's sets new A-Level record

by Staff reporter | 18 January 2019 | 60 Views

Business back to normal

by Staff reporter | 18 January 2019 | 50 Views

Muchinguri-Kashiri warns saboteurs

by Staff reporter | 18 January 2019 | 46 Views

Bishop, ex-wife in house wrangle

by Staff reporter | 18 January 2019 | 44 Views

Man torches hut, injures four family members

by Staff reporter | 18 January 2019 | 23 Views

Teenage brothers terrorise residents

by Staff reporter | 18 January 2019 | 24 Views

Army, Zanu-PF role in protests exposed

by Staff reporter | 18 January 2019 | 30 Views

Zimbabwe inflation shoots to 42,09%

by Staff reporter | 18 January 2019 | 25 Views

Zimbabwe military maintains heavy presence in hotspots

by Staff reporter | 18 January 2019 | 25 Views

Mnangagwa's govt sugar-coats effects of shutdown

by Staff reporter | 18 January 2019 | 25 Views

Evan Mawarire challenges placement on remand

by Staff reorter | 18 January 2019 | 24 Views

Temporary forex relief for companies

by Staff reporter | 18 January 2019 | 27 Views

Zimbabwe churches call for another GNU

by Staff reporter | 18 January 2019 | 23 Views

FC Platinum's big Esperance test

by Staff reporter | 18 January 2019 | 20 Views

Zifa get kit sponsorship

by Staff reporter | 18 January 2019 | 25 Views