Is your Business Cost-effective? How to Create a Streamlined Model

Small and independent businesses in the UK are continuing to evolve in line with the wider economy, with recent reports suggesting that over half of these entities will be looking to increase their IT budgets during 2014. While positive economic sentiment is encouraging multiple entrepreneurs to spend more in expanding their ventures, however, there still remains a pressing need to minimise costs and create a streamlined, profitable business model. Striking this delicate balance can be extremely difficult, especially when business are competing for a larger share of the market.

Creating a Cost-effective Business Model

While the temptation to invest more into your business may be significant, however, creating a cost-effective business model remains to key to maintaining profitability. With this in mind, consider the following steps towards towards achieving this goal: –

• Pay Attention to Small Details: In the world of consumerism, there is an old adage which suggests that the small print of any agreement is key to determining its value. The same principle applies in business, as seemingly small and easy to overlook details can easily cost businesses significant sums of money over a prolonged period of time. It is therefore important that you develop a keen eye for these details, and prevent the more mundane and functional aspects of operating a business to derail its carefully plotted financial course.

• Remember that Time is Money: On the subject of old adages, it is also worth remembering that time can often be a attributed a financial value when operating a business. Whether you are looking to bring a product to market, deliver goods to consumers or simply repair broken items of equipment, speed and efficiency is crucial if you are to minimise the cost of these individual activities. This is why companies such as Dura Slab have had such success with their range of fibreglass gully and manhole covers, as their lightweight and anti-slip nature makes them easy to remove and reduces the labour involved with drainage repairs.

• Consider Each Individual Cost as an Investment: Whenever you invest money into your business, it is in the expectation of generating some from of human, social or financial capital. With this in mind, it makes sense to break your expenditure down into individual costs, before evaluating each as an investment and determining the level of return that it is likely to deliver. Not only will this help you to create a streamlined and cost-effective budget, but it will also afford you an opportunity to prioritise your spending as an entrepreneur.