The route to success for any business is by making more money than you spend. You can either do this by selling your services or products or by slimming down on your expenditure. Both ways are viable. When you own a design business this can be quite hard to do. You need all kinds of materials, employees can make mistakes, projects overrun, the list goes on. There are ways in which you can save money and help your business grow, some are outlined below.
Reduce Costs Of Manufacture
If your company designs products which require electrical components then you’ll need to get these manufactured at an external company. You can save way more money by putting in a bigger order. If you like a certain type of electronic component and see yourself using it often then put in for a larger order instead of frequent small orders. You can save your business money ordering in bulk. If you do need to order smaller amounts, use a company like macrofab who can do it for less money. You should also be consistently trying to get a better deal. Phone the manufacturing company you use most and negotiate a reduced rate. It may work because they will be worried about you jumping ship. What have you got to lose? Reducing the cost of manufacture is a sure fire way of saving your business money.
Cut Back The Waste
When you’re testing different materials for a product you can end up wasting a huge amount. You need to set the mentality and example. Make sure all wastage is accounted for and added up. Post this number on a wall each month. By really driving this you can get your employees to be more frugal and less likely to be gun-ho with the materials you use. The less you waste the more you use and in turn the less you need to order from suppliers.
You also need to cut back on the wastage of time. You pay your employees to do work, the more work they do the more money you make so ensure they are working to an agreeable target that keeps them on track. If you feel they aren’t working so well then go down the disciplinary road. You can also incentivize hard work by offering bonuses and promotion to those who do well and turn in a large quantity of quality work.
Use Cheaper Materials
You may be against this because you want to provide quality materials to your customers, which is fair enough. But sometimes a product does not need the most expensive of plastics or materials to get the job done. If the internal material is different, then use cheaper stuff. You can save a huge amount of money by downgrading the material you use and the customer won’t even notice if it is on the inside. Just make sure you test it and quality assure it first, if it’s right and works, then go ahead and save some cash!
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