What is the biggest cost to a business?
The biggest cost of the enterprise is the management cost


First, let's understand what the cost of a business is. The cost of a business has many aspects. For example, there are the cost of raw materials, the cost of house rent and water and electricity, the salary cost of employees and the cost of operation and management of the company.

What are the operating costs of the company?
1. Including management reception fee
2 Development expenses of the marketing department
3. The business, tax, environmental protection and other expenses of the enterprise

Enterprises are divided into trading enterprises or production enterprises, and the cost of trading enterprises is concentrated in the marketing part. The cost of production enterprises is mainly concentrated in the cost of production and marketing, mainly in production cost.

The management cost of an enterprise affects the lifeline of the enterprise. Therefore, the biggest cost of the enterprise is the management cost. There are three invisible costs: communication cost, decision cost and trial and error cost.



How to reduce the management cost and improve the vitality of the enterprise has become a more important topic now.

In view of the current phenomenon of high management costs, we dig out several reasons under the surface:
1. There are many departments, the responsibilities are not clear, and the personnel are bloated.
2. The setting is unreasonable, resulting in decreased execution and low operational efficiency.
3. There are many managers, unclear functions, and poor employee autonomy, resulting in high costs and low human efficiency.

Is there anything we can do to fix it?
The first is budget control, allocate manpower and expenses according to the budget,
The second is organizational restructuring, redistributing functions, and ensuring that people and positions are responsible.
The third is the performance management of the marketing department. Driven by interests, it can realize open source and reduce expenditure, reduce costs, and realize the contract system to reduce marketing expenses.
The fourth one adopts the partner model, allowing employees to become bosses and partners, which directly reduces labor costs and improves employees' initiative.

#cost of a business#trading enterprises#production enterprises#management cost

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