While making growth decisions, stakeholders need a careful evaluation of the cost associated with it. Cost related decisions have profound impact on the long-term profit margins, often taking years to recoup if cost go out of control. While capital expense stay predictable and fixed, economic cycle directly impact company’s revenue. For smaller businesses when economy is slow or if inflation is growing faster than current growth rate, revenue may note cover the cost incurred.
Our consultants come with a strong understanding of strategies and options available to protect your company against future losses while economy slows down. We take-out costs and re-deploy for growth in a lock-step fashion starting with low hanging cost take-out initiative immediately followed by growth related execution. Consultants will help maintain similar working capital structure with a high potential for short- and mid-term growth trajectory.
We differentiate cost reduction and cost take-out. Finding where the cost is highest and re-deploying the cost elements for higher returns is part of Cost Take-Out service.
safety net & build wealth
You can transform your business to a revenue-producing asset that lets you work as much or as little as you want.
business planning & strategy
TBL maintains a rich database of cost drivers in various industries and has developed best practices of cost behaviors and swings. We come in with an understanding activities in an enterprise that affect cost levels. We develop influence maps to demonstrate relationship between activity and costs. Often in less than seven (7) days we develop cost functions and tell you the biggest impact of how cost can be contained. This tool-kit has allowed us to identify cost leaks and patch them efficiently.
- Evaluate new manufacturing methods and service practices
- Make short-run marketing decisions
- Make short-run production decisions
- Plan/budget future activities
- Make long-term decisions across the company.
research beyond the business plan
We also ensure that the whole team is included in the process and that no one is left out during the turnaround. The most crucial part is ensuring some degree of financial stability during the turnaround.
This is the most worrying part for most clients going through or needing a turnaround; it means that incoming cash flows will change completely. We help ease these issues through fantastic financial projections and a realistic view of what can be accomplished.
Creating a list of potential qualified prospects for your service or product can be daunting when you’re beginning your business. However, this needs to be considered as a follow up on your Target Market Analysis so you can hit the ground running.
Value Chain Strategy of Business Functions to reduce cost
Cost drivers and process influencing cost variance that helps small business reduce cost:
- Make or buy decisions
- Evaluate decisions of idle assets, facilities, intangibles
- Product portfolio
- Obsolete inventory
- Study impact to income statement