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Your profit can be consumed entirely by a unknown thief called overhead. High overhead cost will creep up in your company and wreck havoc with your margins. Before you know it you may be spending more on desks, office supplies, computers, software that nobody uses, telephone costs, mailing cost, custom made letterheads, business cards, too much office clerks, and all sorts of hidden costs called overhead. Did you notice that office supplies have the habit of disappearing ? When was the last time you looked at your telephone cost? To systematically reduce these costs: start by putting one person responsible for reducing these costs. He should make an graph of these costs and determine their trends. Hereafter he should make a plan to reduce these costs. Promise him a percentage of the savings as an incentive. Start controlling overhead or soon your company may be overdead.
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