See 8 ways to reduce costs in the company!
It doesn't matter the size of your business — knowing how to reduce costs in the company is essential to keep your accounts balanced and, of course, to make more profit. After all, that's the goal of every entrepreneur, isn't it?

And there are two ways to make more profit. One is to increase sales, but this can require investment and requires a lot of planning . If you don't have time for that and don't even want (or can't) invest, the second option is the best one for you: reduce the company's costs!
Don't know how to do this? Don't worry! Here we are going to bring great tips for you to be able to reduce the company's bills and make more money at the end of the month.
First steps: understand what organizational costs are
Before knowing how to reduce costs in the company, it is essential that you know very well what these costs are. Only then will you be able to cut or reduce them without jeopardizing your operation.
After all, our goal here is to make you more profit by selling the same amount you sell today, not producing less.
A company has two types of costs, fixed and variable.
Fixed Costs
Fixed costs, as the name implies, are those that remain the same regardless of your production or sales volume. This is the case with rent, which remains the same whether you sell ten or a thousand products in a month.
Other examples of fixed costs are your payroll , accounting, IPTU and insurance you have contracted for the company.
Variable costs
Variable costs are those that increase or decrease depending on your production or sales volume. If you have a garment and need to produce twice as many pieces this month, you will need to buy twice as much material. That is, raw material is a variable cost.
Just like salespeople's commission in a retail store. The more an employee sells, the higher his commission at the end of the month.
Other variable costs are your energy bill, purchase of products for resale and taxes that are proportional to the company's billing .
How to reduce costs in the company: see these 8 options
Now that you've taken the first steps and have a detailed understanding of your costs and operational processes, it's time to check out our tips and start planning to cut costs for your company!
Just don't forget that before you follow any of the tips here, you should look at your own company. Each one has its characteristics and specificities and, therefore, not always what works very well for one business brings positive results for another.
Negotiate with your suppliers
Regardless of the sector in which you operate, to analyze how to reduce costs in the company, it is important to know how to negotiate with your suppliers . And here we are not only talking about buying products for resale, which is very common in retail, but also about service providers.
In addition to prices and payment conditions for the purchase of inputs, you can negotiate, for example, with your internet provider, looking for a plan that is financially more advantageous.
It is also possible to negotiate with suppliers of systems that you subscribe to, tools, cleaning and health services and even with the owner of the property that you rent for the operation of the company.
But keep in mind that, in order to have a good reception for your proposals, it is important that you are always up to date with your financial commitments and that you have a good relationship with the suppliers you work with.
Automate repetitive processes
The saying that time is money applies here. Repetitive activities such as filling out spreadsheets, sending messages and managing leads , for example, can be easily automated nowadays with the help of technology.
This way, the employee who used to spend a few hours on these activities can use that time for more productive tasks. Or, in some cases, automation even allows you to reduce your payroll, as fewer people are needed to perform the same activities.
Choose the ideal tax regime for your business
And if you really want to know how to reduce costs in the company, you always need to keep an eye on taxes. When you choose a tax regime that is not the most suitable for the business, you end up paying more, either by working with higher rates than necessary or even by paying some taxes that you shouldn't.
Therefore, to reduce costs in the company, count on the help of an accountant. This professional will know how to indicate, in addition to the most appropriate regime, the most advantageous CNAEs for your company, in addition to applying some tax avoidance practices (a 100% legal strategy that aims to reduce the tax burden of a company through some loopholes found in legislation).
Take good stock control
Have you ever heard that money stopped equals damage? This is a truth that applies a lot to the stocks of companies. After all, how to reduce costs in the company when the stock is full of products or materials that have no outlet, the money invested in these items is stopped? You end up having extra costs to buy and store things you don't need right now.
And the resources that were invested in the stock could yield much more if applied to other things, such as investments, improvements in the company or even some other necessary purchases to make the processes more productive.
Renegotiate debts and bank fees
If you have debts, your first steps towards cost reduction in the company should be renegotiation and discharge. This is because debts are usually accompanied by interest, which is very harmful to business accounts.
If you cannot pay them all at once, contact your creditors and negotiate new amounts or payment terms. Thus, little by little, you will organize your cash and stop spending money on paying fines and interest.
Another way to reduce costs in the company is to get in touch with the financial institutions of which it is a customer and negotiate some rates. Often, these amounts seem small, but the negotiation is not difficult and, in the long run, this can make a big difference in your budget.
Improve process management
Good process management allows you to control bottlenecks such as rework, duplication of tasks and carrying out actions that cost money, but add very little value to the business.
In this way, it is possible to implement improvements to these processes in order to save both with the payroll and with the purchase of inputs and payment of bills . Here, we return to the statement that time is money!
Employees who are dedicated to unnecessary tasks that add little value or are duplicated can bring much better results and demand less resources when they start to dedicate themselves to other more productive or meaningful activities.
Use technology to your advantage
Technology can be a great ally for your company on many fronts, including cost reduction. Nowadays, management systems are increasingly complete, offering analysis and reports that allow data-driven decision making.
Thus, managers can understand, through information made available by software, which costs can be cut and which need to be maintained so that the company can profit more without jeopardizing the quality of what it offers.
In addition, technology can also help to have more productive routines by automating tasks, especially those that are more repetitive or time-consuming.
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