Introduction
Controlling costs in a business is a crucial aspect as it helps in enhancing financial discipline in the management of the business. In the graphic design business, there are major costs incurred during various operations thus the need to capitalize on controlling costs with the aim of promoting financial stability of the business. The process of controlling costs within any given business requires the implementation of different strategies that focus on planning the financial aspects affecting the business operations (Caffieri, Love, Whyte, & Ahiaga-Dagbui, 2018). In that case, controlling cost is a process that require the involvement of all major stakeholders in the business to consider all the relevant aspects regarding the business operations. In my graphic design business located in Toronto, I will focus on the implementation of different strategies of controlling costs with the aim of ensuring that the business achieves the set goals and objectives regarding its financial stability and the overall performance.
Methods for Controlling Costs
The first element on the checklist of the methods of controlling costs in the business will entail identifying all the major costs associated with different business operations (Gorbunova, Maximova, & Ekova, 2017). The identification of the given costs is a crucial method of controlling costs as it helps in understanding the nature of costs incurred by the business when undertaking the graphic designs operations. In this case, the major costs may include raw materials, supplies costs, capital expenditure, salaries, and wages of the staffs among other costs. The second aspect in the controlling of the costs in the business involve deciding on the costs that require to be controlled centrally and those that are the responsibility of the individual departments in the business (Hammer, 2015). In this case, the control method helps the management to deal with each cost and ensure that the costs incurred within the running of different departments are controlled individually.
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The fourth method implemented in the business involves the engagement of the employees in control process. Considering that a graphic design business involves employees in different departments, it is important ensure that they understand the goals and objectives associated with the running of the business for them to engage in the implementation of strategies that seek to achieve the set goals and objectives. According to Langer (2016), encouraging employees on cost saving suggestions acts as an important aspect towards the overall controlling costs in a business. In the graphic design business, I will capitalize on ensuring that the employees that engage in the best methods of controlling costs receives incentives, which will act as a motivating factor to the individual employees. Another important aspect in the checklist of methods of controlling costs in the business will involve undertaking a review of how different activities and costs contribute in the achievement of goals and objectives regarding the business (Dale & Plunkett, 2017).
The fifth aspect of consideration during the process pf controlling costs in the business will involves the establishment of a budget for the business and engage in the process of monitoring the actual costs defined within the budget. According to Hugos (2018), a budget focuses on outlining the costs that are bound to be incurred by the business in different operation. Through the budget an individual can understand and monitor the costs in a systematic way that ultimately helps in the achievement of success during the control of costs in the business. In this case, the budget may address costs such as the costs of raw material that are involved in the manual graphic designs and the costs of associated with salaries and other utilities within the business. Addressing the mentioned costs will provide the business with the ability to identify the costs that are priority in the running of the business and those that have less priority within the business (Chang, 2016).
According to Shermon (2017), benchmarking of key activities and costs within the business may help in the provision of long-term opportunities for engaging in cost reduction within a business. In this case, I will focus on benchmarking the activities associated with the business and ensure that I can identify long-term strategies for reducing operating costs. Lastly, it is important to eliminate unnecessary activities and identify opportunities for recycling and reusing materials with the aim of saving on costs. According to McIvor (2018), a business may incur unnecessary costs that may be associated with avoidable aspects such as unnecessary travel, which result in costs that create a financial burden for an organization. In that case, it is necessary to focus on avoiding the unnecessary costs and engage in processes that recycle materials in a bid to save on cost.
Conclusion
In conclusion, the process of controlling costs within any given business requires the implementation of different strategies that focus on planning the financial aspects affecting the business operations. Controlling cost is a process that require the involvement of all major stakeholders in the business to consider all the relevant aspects regarding the business operations. The first element on the checklist of the methods of controlling costs in the business will entail identifying all the major costs associated with different business operations. second aspect in the controlling of the costs in the business involve deciding on the costs that require to be controlled centrally. Lastly, it is important to eliminate unnecessary activities and identify opportunities for recycling and reusing materials with the aim of saving on costs.
References
Caffieri, J. J., Love, P. E., Whyte, A., & Ahiaga-Dagbui, D. D. (2018). Planning for production in construction: controlling costs in major capital projects. Production Planning & Control , 29 (1), 41-50.
Chang, J. F. (2016). Business process management systems: strategy and implementation . Auerbach Publications.
Dale, B. G., & Plunkett, J. J. (2017). Quality costing . Routledge.
Gorbunova, A. V., Maximova, O. N., & Ekova, V. A. (2017). Developing methods of controlling quality costs. In SHS Web of Conferences (Vol. 35, p. 01019). EDP Sciences.
Hammer, M. (2015). What is business process management?. In Handbook on business process management 1 (pp. 3-16). Springer, Berlin, Heidelberg.
Hugos, M. H. (2018). Essentials of supply chain management . John Wiley & Sons.
Langer, A. M. (2016). Controlling Costs and Realistic Budgeting. In Guide to Software Development (pp. 81-97). Springer, London.
McIvor, R. (2018, July). Integrating process improvement into business process outsourcing: a capability approach. In Academy of Management Proceedings (Vol. 2018, No. 1, p. 15953). Briarcliff Manor, NY 10510: Academy of Management.
Shermon, D. (2017). Systems cost engineering: program affordability management and cost control . Routledge.
