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Learn to reduce your costs
Learn how to maximize your business resources and cut unnecessary expense.
Written by: Ana Paula Hernández Alday
The company tile floors and the Alvarez family will take no more. There is no cash flow, accounts payable and no people in the administration area suggests the reduction of payroll to the end of the year. This is not an isolated case. Actually this is the picture before which there are thousands of companies recorded a significant reduction in income and a decline in profits.
Only in the first quarter, the INEGI reported a 8.2% contraction in the Mexican economy, which is reflected in the drop in business at 7.8% and manufacturing by 9.9%. Although the crisis can not stop, it is time to take action to reduce your costs and increase the profitability of your business. How?
Sylvia Perales, director of operations Mexico Expense Reduction Analysts (ERA Mexico) and a specialist in managing operating expenses, make a first recommendation: "The way that resources are held not in production but hidden areas and items within the business. "
How to be more efficient
"In small companies, the diversion of cost or high cost is due to the lack of formalization of business processes, which are not limited to the procedures of the production area," says Bruno Blackmore Sanchez, manager of the Fraud Investigation consulting firm Ernst & Young, adding: "To reduce costs is important to analyze the processes of different areas and be open to perfect them, because there are always ways to improve."
In most companies, expenditures higher are considered strategic: payroll and production costs. While operating expenses, representing only 10 to 15% of income from a business, are not seen as an item of which could result in significant savings. "Nothing is more false," Perales says, "because a 20% reduction in operating expenses a company can increase its net income by up to 40 percent."
Per diem, printing, business cards, stationery, cafeteria, cleaning supplies, courier services, meals, corporate gifts and all that is required within a company for it to work, are some operating expenses that are scattered in different areas of a company. Therefore, make sure they are properly used, especially in areas related to running your business where revenues are not recorded, but only expenses such as administration, security, logistics, telecommunications and human resources.
cost reduction aims eventually to maximize resources and achieve greater efficiency in an enterprise. Here the first steps to initiate this process.
- Know your operating expenses and reduce them think have an immediate benefit in your statements.
- Define your needs, ie, establishing what your business requires and what areas you think you spend more. Notes
- the market. You must satisfy, and perhaps there are things you can improve from the inside out.
Before you engage in a process of maximization of resources also have to understand what each expense. To do this, talk with the head of each of the areas involved in the operation to justify and describe the benefit of the expenditures. Lean on the following questions.
- what the money is spent?
- What is the objective sought? How
- benefit the company?
Once you understand the cost, the next step is to delegate responsibility for the process to address finances or general management. Holders of these departments will be responsible for reviewing area by area in which resources are invested. Another useful tool is to have weekly and monthly statistics of the purchasing department.
to reduce costs there is no general rules. On the contrary, "each case is different and each process is a case. You can not apply for savings or reduction of certain material to the entire company, because it may affect your vendors or customers. Long term this will backfire, "said Perales.
savings Vision
One of the most common problems in business is the resistance to change. "There are deep-rooted customs and practices which over time become myths, 'This can not' or 'always been done that way', are typical taboos," says ERA Mexico specialist.
The idea that your suppliers are part of your team is true, but beware, they are also in a competitive market, they sell and, therefore, look after their interests. Attention! Often buy out of habit and perhaps are not as competitive prices. So monitor the market to work only with those who provide you with quality and good price.
An unwritten policy in most companies is the use of petty cash. This is a resource that can generarte great savings if you make purchases on a large scale economy, ie wholesale. Do not forget that the lack of time and the emergency department daily significantly raise your cost of operation, so he always wears a tight control on purchases.
Similarly worth paying special attention to three areas where costs can be realized excessive or capital flight which raise operating costs. "The first relates to the purchasing department where fraud can occur by acquisition, the second is the misappropriation of assets, ie products theft or misuse of services (car and driver) and, finally, the alteration of financial statements in operating expenses reflected in vouchers and bonds, "explains Blackmore.
To jump right to the analysis of these costs is important to get and analyze purchase orders, receipts and invoices. Another recommendation is to make sure your employees do not perceive the reduction of expenses as a negative, on the contrary, let them note that as in a house, in order to save on a company is to find solutions to not sacrifice quality of life and increase profitability. In the end, this will bring benefits to all that may be reflected, for example, sales or profits bonds work.
Blackmore, Ernst & Young, says that the easy way out to the problems of no use, "such as cutting staff, which is a measure that can affect your income in the short term but the medium through a decline in the quality of service. " Before cutting expenditure is necessary to make a comprehensive analysis. "There is a process reengineering, just to make small changes in practices and customs to reduce costs in strategic areas of operation," concludes Perales, Mexico ERA.
Typical errors
- View the market as the only factor affecting the profitability of your business, regardless of internal reasons.
- recognize that not every company can improve and streamline their processes.
- not pay attention to operating costs and consider them all as necessary and impossible to reduce.
- Make certain expenses and purchases unwritten laws and not debatable for modification.
Tips to save
- Shop the monthly (or annual) wholesale. This will prevent diversion of resources daily or weekly through petty cash.
- Affiliate to any price to save club. Remember that if you buy a scale you can get better deals.
- Enroll in a business exchange system, where you can pay in kind some products and services your business uses as input operation.
- Take the spaces within your company, business or office, provided that employees are not uncomfortable.
- Analyzes the possibility of acquiring or renewing machinery, vehicles or computer equipment through leasing.
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Laptops 3D take over Mexico
Toshiba's first laptop with this revolutionary technology, which enhances the experience of games and multimedia .
Backed by twenty-five years of innovation in portable computers, Toshiba once again breaks the pattern of the traditional PC laptop when making their first 3D: 3D edition Satellite A665, which also is also pioneer in incorporating the new props Sleep & Music, fully designed by the Japanese company to be able to hear your music even with the computer off.
With an elegant style, performance and convenience features a bright 15.6-inch 3D screen HD TruBrite ® 120Hz technology with 3D glasses NVIDIA ® Vision automatically transforms your entertainment in a feast for your eyes.
This equipment offers the intelligent performance of the Intel ® Core ™ i7 and the blazing-fast graphics card NVIDIA ® GeForce GTS 350M, which together provide a large amount of power for multitasking and multimedia brilliant.
What's more, Toshiba has complemented this amazing team with one of his most recent novel and utilities: Sleep & Music, which allows you to enjoy music stored on your mp3 through the speakers of this laptop without having to turn it on. Another feature of value is the possibility of adding a Blu-ray option with which will increase your chances even more entertainment.
Many of the attributes inspired by the user are included by the manufacturer in this single model, such as horns Premium harman / kardon speakers with Dolby Advanced Audio, Fusion ® X2 Special over and exclusive utilities Bulletin Board Reel Time and supervisor of state of the laptop, which gives the Satellite A665 the highest level.
"This is a team we are especially proud of because it represents a very clear not only our proven quality, but our leadership in innovation and our openness to what the user needs. We are not bringing to the market only a powerful laptop but fun and cool, something the market had asked us to haunt, "said Socrates Huesca, product manager for Toshiba Notebooks and Projectors in Mexico.
The Satellite A665 3D Edition is available in Latin America in July.
Bibliography:
Technology 21 http://tecnologia21.com/
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There are some aspects of a computer that we should consider before buying.
First you have to think about what use we will give our computer equipment, whether it is office, home or school use. Different activities require different skills such modern equipment.
The ideal is to find a balance between capacity and price. Do not get carried away by mark, but on what we really need and can afford. Also remember that if we buy a computer, we must think of the use of current software.
That said, let us turn to the important points to consider during the search for your ideal computer.
* Processor is responsible for carrying out the tasks of the team, this speed is measured in gigahertz performance and the current trend ranges from 2.4 GHz to 3.1 GHz, also many with two processors working in sync to provide greater efficiency or DualCore, so this type of processor is recommended.
* Hard Drive: This is responsible for storing all your data and programs so that more capacity is recommended.
* RAM: is an additional virtual memory to improve performance of your system to run applications.
Graphics card: it is not essential if it is within your purpose, but if you use your computer's processing includes video, images and video game condition can not be missed.
* There are also additional ones such as recordable CD / DVD, audio cards, size of monitor, mouse, etc.
By Alicia Sanchez Castillo
Friday, January 28, 2011
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Hello!
As you know this website is to keep contact to the entire community IDeSS, but a comprehensive understanding of the functioning of the platform will allow us to participate actively and make the most of this tool.
To begin, we must explore a bit what is in our web community.
A right at the top, you will find a small section called "Tags." This tool enables you to filter the blog posts. That is, if you do not want to see them all at once and only for a specific search, you can select the appropriate label. To this end, the end of the publication, the label will appear that you belong and identify with it.
Below the tabs, you will find a search engine: a blank space where you can write. This tool is more specific than the labels to find a publication or a specific comment. Under
browser, you will find a dropdown menu. Here are the different pages of the blog: The Principal (where the publications), and the Survey Chat.
To the left of all these tools is the area of \u200b\u200bpublications. There you can read updates on the page and comment on them (at the end of the publication is the option). Also, at the end of each publication, can be shared publications through the mail, facebook, twitter, buzz or blogger.
the bottom of the page you will find two commands, one that says: Home and another that says: Check Old. This command will allow you to return to the home page or check publications that no longer appear on the home page.
Finally, the end is a small recreation area called "Fish." It is a virtual application where you can feed the pet fish. Really has no more use than pass the time.
I hope this information is helpful.
much success.
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Welcome to the new year 2011!
We are about to begin a longer period of learning with the desire to cultivate a fruitful personal growth.
Students, I would like to congratulate them for their ambition of self-improvement and wish a wonderful course. Also, I would remind you that this space is dedicated to you. Here you will find useful information and a variety of interests for development. However, this space is open for you and your concerns. This blog is presented as an interactive platform where you can receive information and updates from the world around us and, in turn, to participate with comments, questions or suggestions for topics on which they would like to learn more.
Tutors, I extend a strong appreciation for your noble task of supporting the minds eager for knowledge and I reiterate the importance of their task in this period that now begins. We remind you that this space is for you too, because we are all part of this community IDeSS.
nothing else at the moment, I extend a warm hug to all tutors and students. Together we embark on this new adventure. I assure you it will be a wonderful experience.
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- Population. These Population increases have not occurred very often in our history and less in the case of Figueres where the English population has been reduced. Viewing the percentage of immigrants (about 30%) we must address the integration of this population, "Or we will integrate or disintegrate."
- Unemployment. This has especially hit the towns where the increase in foreign population has been higher.
- market share. Importantly Olot share loss and gain spectacular Blanes and Lloret. In all the regions of Girona Win market share.
- Variation of motor vehicles. I have not taken into account.
- banks. I have not taken into account.
- Number of industrial activities. This significant increase in industrial activity, highly concentrated in construction has caused industry crisis has hit especially Figueres. We put all our eggs in the same basket.
- Number of business activities. Very important and growing figs and retailers at the same Blanes Blanes and Salt.
- Surface m2. Not seen remarkable data.
- Indexes. Should analyze the loss of economic activity and especially in Figueres Girona.