Need to know how to cut operating expenses in the sportswear business? You can successfully cut your operating expenses, but you’ll need several resources to help you get the job done. Operating expenses are funds that are used to operate the sportswear business. Some examples of sportswear operating expenses are utilities, rent, salaries and more. There are other operating expenses that you may not even anticipate. These operating expenses keep your sportswear business running.
- Try to cut your operating expenses in the sportswear business by reviewing your operations expense reports for the past six months. Set a goal to cut your business' operating expenses by fifteen percent for the next year. Identify categories on the operating expense report that have the highest expenses. Consider reducing the staff in your sportswear business, because this is going to be your highest operating expense in most cases, and you can also reduce employee hours or close the store an hour earlier. Consider closing the store on slow business days.
- Take a very close look at your purchasing procedures to help you cut operating expenses. Ask yourself questions to help you reduce your operating expenses. Who orders the sportswear for the business, and can you find another vendor and get better pricing on your sportswear? What sportswear is not selling so you can eliminate that line? Plan a meeting with the sportswear vendor and let him know that your goal is to reduce operating expenses by fifteen percent for next year. Ask him to find and locate other vendors to help reduce operating costs.
- Hire a certified public accountant (CPA) to help you cut your operating expenses. Visit the CPA’s office and inform her that your goal is to cut your operating expenses by fifteen percent for the next year, and ask her to show you what can be done to achieve that goal based on your business records for the past six months. Seasoned CPAs will find a way to cut your operating expenses. Take this advice and do not forget it; all the while, work as hard as you can to increase sales to help cut your operating expenses if you want to stay in the sportswear business.