Running a business involves many costs. But you know that already. There are many anticipated and undesirable costs that you have to deal with. I have not yet met a construction company confronted with low costs. It’s impossible. Take a look at your last month’s figures. Can you calculate the total cost? Sometimes it’s hard to pay attention to these details. You should however. The costs can nibble your money right in front of your eyes.
You can act to reduce these high costs.
Fleet of vehicles
If you manage a large fleet of trucks and vehicles, you need to know why their operating costs are growing every month. It is crucial to analyze the problem. If you do not know how to do it, ask someone to do it. Analyze the size of the fleet and the quantity of vehicles. The end result will shed light on their performance. Think about whether you should sell them and buy better models or whether you will continue to spend money on problem solving.
Opt for ecology
Everything is recyclable. The “green” environmental standard has changed considerably. What was previously reserved for households can now apply to businesses. Everything can be reused. Whether it is disks, paper, binders … If it is no longer possible to reuse them, recycle them. This has two advantages:
- Reduce purchasing costs
- Reduce the waste collection bill
How often do your employees have a solution? They are the first users. If that has not happened so far, they should be encouraged to do so. Reward them for finding an idea to save money. If you do not know where to start, a first step is to do a brainstorming to find out how to honor your employee. You can offer employee benefits, extra leave, a free lunch for a week or just a cash bonus. If the company can save money with this idea, it deserves attention.
New technology (hardware and / or software)
Your obsolete technology costs you more money than it brings you. Retaining old technology (hardware and software) with weekly interventions significantly affects the company’s budget. It probably does not have the necessary functionality for a certain project. Which forces you to use third parties to solve your problem. And leads to additional costs. So what to do? Opt for new software or / and hardware that works. This is a one-time investment that will pay for the long term. The need for weekly maintenance will disappear. And the cost involved will be reduced to a minimum.
This aspect is more complex, but it is worth the detour. At a time when all are trying to produce more with less effort, the versatile workforce is welcome. What does it mean? Look for specialists in your team who have the ability to perform multiple roles.
Order of amendment
Do not forget the change order when you build. Make sure that you have invested in a very controlled order change process. You have to make sure that everything is done properly and that everything is well documented. Any additional costs will be approved. In this way, you will have a complete view of the circumstances and changes that occur.
Tax on transactions
It’s always the last time. When you’re in a hurry, you always buy something with high taxes. You swore it would be the last time and you continue. So it never is. All building materials can be purchased duty-free and stored until you need them. I do not know if you know, but transaction taxes are not payable until the goods are actually transferred to the construction company.
At first glance, it is the opposite of what has just been explained. If you dig a little, you will see that it makes sense. How? By investing in the future of your core employees. They must be happy at all costs. It’s a way to keep them on your side when times are tough. Invest in safety programs to reduce compensation costs for workers. Consulting them to know how to reduce the high costs is not useless to earn points from them.