Rapid Profit Improvement (Series Post no. 10 – Reducing Expenses)
As previously mentioned, many Business Owners and Managers face the ongoing challenges of trying to identify additional business profit while running and working in their businesses. This is not an easy task and often requires the engagement of an experienced set of professional eyes – like ours – which can rapidly uncover previously hard-to-see profit opportunities as not only do we have the experience of knowing where to look but we are also looking from a fresh perspective.
Case Study No. 10 – Reducing Expenses
An engineering business asked if we could review their overheads as they thought they were getting out of control. Using our Rapid Profit Radar Diagnostic, we compared their overheads costs and contracts against the services they actually used. Our analysis highlighted numerous issues, including insurance being paid on assets that the business no longer owned, hire charges being paid on equipment that had been returned to the supplier, mobile phones and landlines that no longer existed, licenses being paid for software they did not use, and a lease vehicle that had already been returned.
It took us two days to identify and rectify the issues. The overhead savings from the removal of the non-existent services added up to approximately $5,500 per month or $66,000 p.a. Additionally, we were able to obtain refunds from several of the suppliers amounting to approximately $25,000.
What is more, our Rapid Profit Radar Diagnostic, highlighted significant issues in the business’s processes which we were able to correct to help prevent a reoccurrence of the same issues.
We always run a Zero-Risk policy with our customers… No Profit Improvement – No Fees.
For more information on creating or improving a business model please call John on (021) 625-871, and further more information please visit Into the Blue.
