LIKE most in an economy teetering on recession, small businesses are doing everything they can to keep costs down. But analysts say that, while businesses are trying to replace lost profits by increasing sales or reducing expenses, stopping the leaks one drip at a time is another way to contribute to the bottom line. Expense Reduction Analysts principal consultant, Great Southern region, Will Singer, said small to medium-sized enterprises could benefit in the downturn by adopting a no-drip culture. "A no-drip culture is simply the process of attending to every leaky tap in your business - the evergreen equipment lease that automatically renews, the contract that hasn't gone out to bid in several years, the old fee structure that no longer provides the best price for your current business volume," he said. "The more you look around the more leaks you are likely to find." Mr Singer said the no-drip culture focused on eliminating waste, not cutting out necessary and productive business tasks. "By adopting this as part of your business plan, the goal of saving money will permeate every part of your company and lead to increased profits," he said. Mr Singer said businesses should always question the necessity of expenses, write down the savings expected for a cost and then double it, ensure the changes identified to create savings were implemented, and introduce a method to measure the savings. "As your record grows, you will be well on your way to a no-drip culture that values adding profits to the bottom line," Mr Singer said. Expense Reduction Analysts is a global network of consultants specialising in finding extra profits by reducing expenses in non-core categories
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