Cost Control and Budget Planning. Plan and Execute!

if we neglect company cost and budget control,it will create a big impact to the company.
every 10% cost lowering, will help to increase profit of 5%.
clients is not equal to revenue, market not equal to profit, the crucial thing is how you can cut cost for the operation.

there are 12 points in cutting cost in the financial control:

1. 砍价专家
develop a financial control policy by a professional team of finance management. it include collect all the past years figures and documents, check the market and sales analysis, budget planning and etc.

2. 砍人手
human resource is important to the company. necessary training need to be execute in order to train an employee to know where is his /her potential to help the companies. else, company need to give necessary action to the employees in order to avoid "wrong" person work for the company.

3. 砍机构
decreasing department. sometimes an employee may have to b multi tasking. every department need to aim to help company to maximise profit and minize cost.

4. 砍固定资产
Fixed Asset is non flexible cash. all the fixed assets should be able to produce investment revenue at least above 25%.
if we would like to increase our cash, then it must have the additional value. else, we may have to borrow more money to secure the fixed asset.

5. 砍采购成本
build up rapport relationship with supplier, partners in order to lower the cost of business.

6. 砍预算
all departmental cut budget,and submit revenue report. ask every department analyse on budget.

7. 砍库存
stock reduce the cash flow and profit. decrease stock level.

8. 砍劣质客户
if those bad potential client, or bad debts customer, or those customer loss in trust, we do not have to entertain them anymore in order to avoid bigger losses.
focus on those good customers and get more new potential customers.

9. 砍日常开支
such as phone bills, petrol, entertainment, office expenses, travel allowance expenses and etc.
in terms of entertainment, we can choose the certain restaurant or those which we have member priviledges in order to make it standard for the cost.

10. 砍面子
no luxury. client just need efficiet , speed , high quality services and loyalty. low cost is always the crucial for the company.

11. 砍会议，砍聚会
straight to the point in the meeting to save more time and do more quality work for our time.
therefore, always prepare before the meeting. for those late in meeting , should have necessary penalty.
Once the plan has been confirmed in the meeting, must execute it in a certain timeline.

12. 封刀
always calculate profit and planning budget before execute. then, it will be able to control corporate cash flow, reduce human resource. by then, we wont get losses after we have done all the effort. 先算后做。。


Last but not least, financial management is always crucial to a corporate. cut cost, earn revenue and profit. understanding how to earn profit, even understand every employee, every plan and execution, to every product revenue and loss situation, need to shown in figures.

figures tells us how the company doing. Profit making company will be success and be able to contribute to the community, create useful product and cultivate more efficient environment.

let's us learn together to make more profit!