Reducing Costs
A simple scoring method
To find big costs savings, look at your accounts (eg: bank statements, purchase ledger) and list the main costs.
Rate each of these costs for saving-potential according to:
- The ease with which you can realise saving without damaging the business.
Score between 0 and 5:- 0 means that you cannot save any money without causing terminal damage to the business
- 5 means that you can make big savings with no impact on business results
Score between 0 and 5:
- 0 means that the saving is minimal, with a negligible impact on your level of debt
- 5 means that you can make big savings that will ease all your debt problems
Costs with the highest scores are the prime candidates for making savings.
Example (1)
not replacing a senior manager who wants to retireThis is easy: score 5. The saving is significant but not massive: score 2. Overall savings potential score is 2 x 5 = 10.
Example (2)
making a junior member of staff redundant.This is hard: score 1. The saving is low: score 1. Overall savings potential score is 1 x 1 = 1
Return to Reduce Business Debt article
Develop Your Potential
Our personality questionnaire can help you:
- become much more self-aware;
- develop your leadership, management or influencing skills;
- find a career that matches your personality;
- Improve teamwork and team relationships.
You can either do the personality test yourself, or administer multiple questionnaires for use in team building and leadership development.