Cost Reduction Strategies
When you grow your own business, sometimes you do not have enough time to find that perfect vendor who offers the least expensive yet still great product and service. Even if you are very satisfied with your vendor and have no intent of switching to a new one, you may not have had a clout and established credit at the time to negotiate better rates.
Now that your business has at least a year or two of track record, it is a perfect time to launch a cost reduction effort by renegotiating your contracts with existing vendors. Many vendors will be willing to give you discounts, especially if you buy in bulk and have been loyal customers. Some vendors will not budge so be prepared to switch to alternative providers offering a better cost/value ratio.
Davidoff & Associates can work with you to identify expenditures that may be reduced without jeopardizing the quality of products or services or back office operations, and then renegotiate your contracts. This will improve your cash flow and allow you to redirect the surplus funds to key areas needing investment. If you are ready to begin your cost reduction effort and need help with the strategy, do not hesitate to contact us to get the ball rolling.