Question

Pretend that you own a small business in a highly competitve. You're facing a significant amount of loss. What are the best solutions of increasing your revenue and reducing your cost in the short run?

Answer 1

A small company is defined as a company that is characterized by either a few staff members, minimal market share, low scale of production, low earnings and a small scale of financial investment. On the opposite, it is a big organization that has more resources that can be used. On the other hand, the brief run is a description of a period of operation whereby one-factor input is repaired while the others vary in nature.

Explanation:

In this case, it is a small company, dealing with substantial quantities of loss; there are various ways of increasing earnings while lowering expenditure; given it is a competitive market scenario. First, there is the alternative of multitasking the employees; whereby one will be capable of carrying out more than one kind of operation in the organization, therefore lowering the amount of expenditure on incomes. Additionally, updating production, interaction and marketing activities will bring down expenses while increasing profits; as making use of relevant technology has the result of developing a higher offer of benefit. The use of efficient and prompt strategies will also come in helpful; this is where the plans executed by the business will have a greater possibility of being successful; thus making operations successful in the long run. Cutting production expenses, lean production and auditing operations are some of the other methods through which costs can be reduced while increasing incomes at the same time.