Improve Business Profitability: Manage Overhead Costs

Your Overheads Efficiency Ratio is Worsening

Are your Overhead Costs, or Fixed Costs high?  Reduce these costs and improve business profitability. Overhead costs: rent; permanent labour and other costs that do not fluctuate with your day-to-day production levels. They have a direct impact on your Operating Profit.

Determine Causes and Solutions

There is a tendency for Operating Costs to increase overtime. Is your business getting more sluggish? Is your business accumulating more “barnacles” that slow it down? Then measure and monitor your efficiency in this area. Optimise your overheads and improve your profitability.

Selecting Next Diagnostic Step

Learn to use the 12Faces Diagnostic Process to best advantage, click More Info.

Improve Business Profitability by Managing Overhead Costs

Monitor Key Statistics

ScoreBoard is a 12Faces tool that extracts the hidden information in your Profit & Loss and Balance Sheet reports. Monitor this information on a monthly or quarterly basis. Then highlight and fix problems before they have gone too far.

Optimise Your Overhead Costs

Reduce your Overhead Costs and improve your Overheads Efficiency Ratio. Look at current procedures for any accumulated wasteful habits. Turn these around and then grow your business.

Improve Business Profitability: Labour Efficiency 

There is a tendency for Labour costs to increase faster than an increase in Revenue. As Labour is an expense, this has a direct impact on your Profits. Learn about measuring labour efficiency here.

All About Overhead Costs

Not sure where to start? Look at this collection of articles on Cost Reduction. Covers locations to abandon; supplier relationships; fixed costs; staff costs; products to discard; overhead margin analysis; labour efficiency ratio and more.

Typical Overheads and Remedies

Learn how to manage staff and others. And at the same time improve your leadership skills. Go to the group of articles: Staff Management: Plus Yourself and Others.

Furthermore, go to Outsource Sales and Marketing to find out how to choose professional advisors.

Course: C2.0 Optimise100

Either, your business has been operating for some time or you want to grow. Eliminate the wasteful habits; check your pricing and overhaul your costs. These will all drag on your Profitability. Your goal is Sustainable Business Growth. Then this is the course for you. Sign up now.

Tools: TrendBoard

Find the extra information hidden in your Profit & Loss and Balance Sheet reports. Properly interpreted, these reports will unleash valuable information about the sustainability of your business. Following are examples of what you will find: could my business fail over the next 12 months; what is ruining my cash flow; how much will I get if I sell my business right now. Click here to see an example of a TrendBoard screenshot.

Tools: ChangeBoard

ChangeBoard is a Sensitivity Analysis tool. Are you thinking of increasing prices? Then undertake this with some surety, instead of flying blind. For example, a survey of 1,000 firms in Europe showed that an average of 11% increase in Profit was achieved by a 1% increase in Price. Additionally, ChangeBoard can predict changes in staffing; Profit; Cash Flow and Working Capital. Click here to find out more about Sensitivity Analysis and ChangeBoard.

How to use our Diagnostics

Click on relevant links above to drill down and find possible solutions to your current issue.

Know of other Diagnoses and Solutions?

Please let us know of other possibilities by emailing us with an outline.  We will update our resources so you will be helping those who follow you.

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