Friday, March 31, 2017

Owning a Factory: How to Cut Your Costs in Three Simple Steps


In order to be a successful business owner, the bottom line is that you need to make money. No matter how good an employer you are or how fantastic the product you manufacture is, you will not be able to stay afloat unless you bring in more capital than you spend. So how can you go about doing this?

One of the simplest and most effective ways to achieve such an aim is to reduce your overheads in order to increase your profit margins. Although it may feel like this is easier said than done, almost every business can find some way to decrease their spending without the measures they take negatively impacting their enterprise.

If you’re intrigued but in need of some inspiration, here are a few ideas to get you started…


#1: Re-negotiate the Cost of Materials

One of the greatest expenses attached to running a factory is the cost of obtaining the raw materials used to create your product, so this is a perfect place to start if you’re looking for ways to reduce your overheads. Begin by getting in touch with a variety of companies for quotes to see if any of them are willing to offer you lower prices than your current contacts. Should they do so, you have two options, both of them beneficial: firstly, you can go with the supplier that charges less; or secondly, you can go back to your existing provider with the quotes you’ve received and see if they’re willing to re-negotiate your contract.   

#2: Shop Around for Your Equipment

Another sizable outlay will be necessitated by the equipment needed to run your factory, but like the cost of materials, it’s all about learning to shop around for your goods in order to reduce your expenses. There are plenty of suppliers out there to choose from, and many will be more willing to negotiate than you imagine if they realize that not lowering their prices is likely to lose them a sale. You also have the option of renting if you want to lay out less money at the outset, or of buying good-quality equipment and machinery second-hand from a company like Clarence Jones Machinery to help you secure a reduced price tag.   

#3: Go Green

Factories, by their very nature, must use a lot of energy to power their equipment and keep it running, so one great way to cut your costs is by going green. Simply switching to more energy-efficient machinery and lights can really help to reduce your expenditure, and it has the added boon of not only being environmentally friendly, but of giving your company bona fide eco-credentials that many customers will find appealing. 



 Make the change today: cut your costs and increase your profit margin to help your business thrive. 

The State of Household Debt in Canada

We have a serious debt problem in this country. Canadian household debt has been on the rise for decades, but 2016 was the first year that the amount of money Canadians owe has surpassed the national gross domestic product (GDP). The average person owes 1.67$ for every dollar they are making, and this number continues to rise steadily, despite the average salary increase not keeping up with the cost of living. This disturbing trend affects all aspects of our lives, including our consumer debt, our mortgages and our ability to get mortgages, not to mention the overall economic stability of the country. 


So that begs the question, what can one do to avoid becoming just another indebted statistic? This info graphic from Loan & Go breaks down the different ways Canadians have found themselves in so much debt, and offers up some tips on how to combat it in your day to day life.

 
                                                                CLICK TO ENLARGE

Saving Is a Critical Part of Money Management




‘’Education is not the learning of facts, but the training of the mind to think,’’ said Albert Einstein. When it comes to financial management, it requires all that thought because throughout life there are important decisions to make. There are always competing demands for your money and while you cannot be certain to be right every time, the better your decision making, the better your prospects. There are compelling reasons for saving whether for a deposit to buy real estate, accumulating an emergency fund or towards a comfortable retirement.

As you set out on your career you may already have debt. Most graduates will have funded their further education with a student loan, often a federal one with a good interest rate and several years to pay it back. More seriously, many have also used a credit card to fund their daily life. Any such debt is expensive with a high rate of interest applied. With a regular paycheck now imminent, it takes all that thought to balance the competing demands for your money. You should think about saving but also about getting rid of that card debt with a 500 fast cash providers ; it is much cheaper.

If you set out a saving strategy, you should be clear of wasteful debt, but also have the self-discipline to manage your money well because there are many sensible things to spend it on. There is also a good deal of temptation along the way.

Marketing is a specialist subject; it puts temptation in your way. If you have a credit card, you need just to hand over that piece of plastic and you have made the transaction. Online it is even easier; computers can store your information so you can buy at the press of a button.

There are some guidelines to remember, both to control your spending and to encourage your saving. You must have a budget in place so that you know what you can afford and what you should avoid so that your financial management achieves your aims.



Automation

You should arrange to transfer a fixed monthly sum out of your checking account each month as soon as your pay check arrives. It will result in your almost forgetting it is happening and it certainly prevents you from overspending if you are tempted.

Another Bank?

Perhaps that money is still too accessible. Put it somewhere that is more difficult for you to access. The fact that you cannot transfer it online within the same bank can act as a barrier to temptation.

Reverse the Procedure

If you have your pay check placed in a deposit account each month then transfer out your monthly requirements from there, the chances are that your saving discipline will be reinforced.

Using a Savings App

Such apps are widely available and will analyze your cash flow for you and actually advise you what you can safely spend without touching your savings.

Routine

If you need any reminders to put some money aside then get into a routine; diary the day each month when you do it so you are aware of an action you have to take.

Continue

If you have comfortably paid off an existing loan without being under any great pressure, you should consider continuing to regard the monthly amount as inaccessible. You should increase your savings accordingly because t will provide you with even more growth while removing possible temptation at the same time.

Conclusion

You can put obstacles in your way to prevent you from spending on a whim. If you have the time to think again because you need to actually transfer money in order to buy, then your thought processes may result in your changing your mind for the better if you have your saving cap on.  Debt is stressful and good financial management that is well considered should ensure that you will have few financial problems, now or in the future.