A small list of thought-provoking questions for managers:
- What are the top five expense items on your income statement?
- How have you reduced these expenses in the last year?
- What are your top variable costs?
- How have you reduced these variable costs in the last year?
- What are your top fixed costs?
- How have you reduced these fixed costs in the last year?
- Do you know what your monthly revenue must be to break even?
- How much have you reduced this breakeven point in the last year?
- Have you lost business because your pricing was too high in the last year?
- Do you know your actual capacity utilization?
- What action have you taken to improve utilization rates?
- Who are your top five vendors or suppliers?
- When was the last time you negotiated a better price from them?
- What is the first thing that your customer does with your product when they receive it?
- How can you combine the value of your product with their process better?
- What costs/expenses/processes do you have that do not add value to your customers?
- What actions have you taken to remove non-value added costs in the last year?
- What is the revenue and net income per employee at your company?
- How does that compare to your competitors?
- What should be THE top priority to boost your company's bottom line?
High-performance Profitability Enhancement and Cost Reduction Specialists
Copyright, Evans & Associates 2015