Capital tightening, small and medium-sized windows and doors, corporate control costs, six strategies

For a long time, many doors and windows companies have been active promoters of the “expansion model.” The greater the scale of the company, the more invincible it is. However, from the perspective of capital structure theory, the scale does not necessarily have benefits.

The motivation and ultimate goal of any business development is to make profits. When there is little difference between the sales revenue of a company and a competitor, the control of cost becomes the key for a company to obtain a competitive advantage. Therefore, reducing costs is the only way for the door and window companies to survive the ice break. Especially in the era of "cash is king", cost control is particularly important.

Then, how should the doors and windows enterprises control production costs and operating costs so as to minimize the cost of the enterprise and maximize the cash flow?

1. Establishing a reasonable budget final account system Doors and windows enterprises should establish a reasonable budget final account system to effectively estimate the cost expenditures of the whole company and various departments, and implement the production cost control measures to specific personnel, specific positions, and specific issues. On the detailed cost indicators.

2, the development of cost control standards "No rules, not a radius." Formulate relevant regulations and procedures so that each participant in cost control knows what to do, what effect and degree to achieve, and give them a direction and goal.

3. The establishment of a cost supervision and accounting system Whether it is a door or window enterprise or an enterprise in other industries, there are more or less phenomena that waste company property or erode corporate property. In order to curb the occurrence and spread of such phenomena, and thus eliminate such incidents, companies need to increase their internal audit efforts and establish an effective supervision system.

Control costs should include full monitoring before, during and after the event. An enterprise may establish an internal audit team, strengthen internal cost audits, conduct a rigorous review of all expenses that will occur or have occurred, evaluate its rationality, and provide feedback.

4. Enhancing the procurement of transparent doors and windows Any economic activity of a company can not be separated from the purchasing department. It is the key to the cost control of doors and windows enterprises. However, whether it is procurement of raw materials, machinery and equipment, parts and components, or the purchase of other office equipment and office supplies, it is impossible to avoid the "grey area." It can generally be limited in two ways:

(1) Centralized purchasing method, that is, through the comparison of multiple methods of goods purchase, increasing the transparency of procurement, selecting companies with higher cost performance to cooperate, and regularly re-screening selection;

(2) An enterprise may adopt a "split-off quotation" method, which is to quote prices one by one according to the cost of various processes for the production of various raw materials and components. The cost of each process plus normal profits is the quotation of raw materials and components. Outside the normal range, you can abandon the re-election.

5, refine the cost of all aspects of doors and windows enterprises from raw material procurement, to product design, production, quality inspection, inventory, and then to product sales, cost control goes through every link. The cost control of each link must start from the subtleties. The large amount of capital loss in the enterprise is often caused by the details. Therefore, control costs must start from the details, so that every employee in the company pays attention to details to prevent some bad events from happening, and really put cost control into practice.

6. Cultivate cost control awareness Doors and windows The cost control of a company is very important. It is not only a behavior, a habit, but also a reflection of employees' sense of responsibility. The formation of such a culture requires the leadership of the company and all departments and employees to work together.

In short, only by strictly controlling corporate costs, investing cautiously, and not blindly expanding, can we create more cash flow.