Most people will tell you that the only way to make your business run smoother is to make more money. More profit means more ability to hire staff, purchase equipment and invest in proper infrastructure.

But that’s business 101 for most people. The report we read analyzed 2010 sales, profit per employee and payroll as a percentage of sales data for private companies in six major industries: construction, manufacturing, wholesale trade, retail trade, healthcare and education. And in today’s economic climate, and many fear that today’s problems aren’t solvable anytime soon, cutting costs by improving efficiency is a far better long-term approach.

But where can large companies cut costs anymore? Travels budgets have been slashed, hiring freezes are in effect and upgrading hardware/vehicles is almost out of the question.

Sageworks’ data suggests that industries with a decline in sales have compensated by cutting expenses, including overhead, employees and employee costs. Businesses have increased their efficiency to the point where they’ve increased their profitability back to pre-2008 levels or even better.

GPS systems that enable employers to track company vehicles and help plan routes before leaving the building can help tremendously. Reltima’s GPS Management Systems, which we like a ton, are suited to do just this. Companies with HUGE fleets like UPS and FedEx use similar technology to save on their costs, and we’re happy to help set you up, too.

Here’s to higher profits, and lower expenses, in 2011.