Cost effective finance from Expence Reduction Analysts

Everyone becomes cost-conscious when the money is harder to come by but focusing on great financial offers for businesses and individuals can also be a big opportunity for franchise growth.

Financial services is a term that sums up a host of provisions from mortgages and home loans to credit access, from general banking to cost reduction. In times of financial ease money flows freely; in times of economic distress we all have a tendency to tighten our belts, whether in a domestic or corporate situation.

One firm aiming to boost the bottom line for business is Expense Reduction Analysts which specialises in core expenses such as IT, telecommunications, office supplies, printing, cleaning, energy, freight, and insurance while also streamlining associated costs like bank fees, human resources, travel and accommodation and many other everyday business expenses.

Demand for such services has been increasing, and even more so as whispers of a recession echo through the market place. Senior management is now more often looking to improve the bottom line.

How a franchise can improve your bottom line

"We typically provide solutions that generate savings of between 15 and 25 per cent, often much more without sacrifice to quality and service. In fact, our clients usually see a vast improvement in this area," says Michael Nicholas, director of Expense Reduction Analysts Australasia.

It's a business that can help small firms and franchisees to achieve better results, it can also be a business services franchise opportunity. So how does it work? A consultant works entirely on their client's behalf, independent of suppliers or agents, providing an impartial review of a company's expenditure, examining potential profit leaks and identifying areas for savings that, once achieved, can be used to fund business development or go to directly improving profit and perhaps more importantly cash flow.

Other benefits include improved inventory management, time-saving cost-analysis and management tools, improved internal compliance and improvements in corporate culture and staff morale. Introducing new ideas, technologies and trends will boost a company's competitive edge.

Consultants make long term forecasts about what will work followed by a program that includes regular monitoring and review processes to maintain the success.

Franchisees within the Expense Reduction Analysts accounting services franchise system work on a no savings-no fee basis. Fees are only charged when business operating costs are reduced in the targeted areas.

Franchisees audit and analyse current expenditure patterns and prices compared to Expense Reduction Analyst's own internal benchmarks and market research. They conduct interactive workshops to discuss their findings, prepare and implement supplier briefs based on workshop outcomes, shortlist suppliers and assist with the interview and selection process, then plan the implementation approach with suppliers.

Consultants continue to help resolve issues over an 18 month transition period and ensure significantly reduced business operating costs, investigating further savings through staff or systems change and the emergence of new opportunities.

The business services franchise provides an intensive training and induction program including a six day initial induction course in San Diego, California followed by a quick start implementation program and a further six-month mentoring and personal development program in Australia. Marketing support includes a brand awareness strategy conducted through leading business publications and industry magazines. The group's website provides a reference for prospective clients inclusive of case studies and testimonials.

The contingency based fee structure of the home based franchise business shares the savings with the client on a 50/50 basis over the contract period, usually 18 months. "When you think about it, our clients pay us with money they would ordinarily have spent on goods and services, so in effect, we're already in their budget," says Nicholas.

"We have a terrific track record of achievement so our consultants are generally well rewarded for their efforts. Our contingency based fee allows us to provide our services at no risk and also aligns our own financial interests with those of our clients."

This article appears courtesy of Franchising Magazine