Reducing costs may sound simple but it surely isn’t, especially when you want the best for both your company and the client. You need to approach the problem of cost reduction smartly and methodically. This is usually achieved through careful observation of your spendings and eventually targeting the thing that can be excluded from your overall budget. Reducing unnecessary cost will increase your business’ profitability.
Before you start planing, you need to identify costs that appear to be easily eliminated without leaving any negative effect on your business or your customer. Start with trivialities like buying treats for people in the office like juices, doughnuts and similar. If, on the other hand, you don’t want your staff to work without these then opt for a cheaper solution.
Evaluate your staffing costs
The productivity of your business is based on direct effort your employees invest in your business. Evaluate your employees input and see whether they could work more for the money you pay them. A way to achieve great cost reduction is through offering your employees a three-quarter-time employment option that includes a reduced benefits package… At least until your business flourishes again.
Further, cut out lunch breaks. If your staff used to have one hour breaks, cut them in half and set them to 30 minutes to increase productivity. Also, reduce your recruiting and training costs by promoting current staff. Give chance to college interns and instead of full time salary give them half and a good recommendation.
Analyzing your purchasing practices in order to identify costs may help you to get the idea about any economies you can achieve.
Some options you can adopt are joining a quantity purchase group or buying in bulk at a discount. You can also renegotiate service contracts. You can also buy directly from the manufacturer or wholesale or even purchase equipment and furnishings from resale vendors.
A great way to save up when it comes to your office energy is definitely by going green. Some things you need to invest in in order to get a great return and one such thing is energy-efficient lighting, thermostats set to achieve greater efficiencies. Also, properly ensure all utility meters are working correctly. When it comes to office insulation, it is important to have it tested for its R-value (how well it insulates) and if necessary contact an insulation contractor to replace it. Speaking of insulation, don’t forget to tend to windows and doors – have your office windows tinted or replaced with dual-paned models and turn off unnecessary lighting after office hours. Also, seal leaks that seam to have been causing problems.
Instead of going over the top with PRs you hire, opt for a cheaper services. Not all that’s cheap necessarily means low-quality. Quite the opposite. There are a lot of young people building their reputation and deciding to go with low cost of their services. The same goes for social media and Internet technologies department. If you implement marketing strategies that are more controlled and choose to focus your marketing efforts to your targeted audience you will save your business’ money while at the same time increase customer response rates.
Sometimes most money goes on expenses that seam small at the time. These are usually thing we don’t pay attention to – phone usage, supplies, paper for copying and similar.
If you monitor and control personal use of these cost centers are looking at a significant saving on the long run
If you are in the business with different types of goods, you already know that often damages occur in transport or for keeping the goods in unsafe places. In order to prevent such occurrences, we suggest you invest some money in building container shelter. These are great for storing away the goods because they keep everything in its original shape. These are usually very easy to install and dismantle, they’re cool and safer. Plus, they can be of great design.