Now that times are hard, even businesses are compelled to reduce costs so that they can better maximize their profits. But is it really wise to limit the resources that aid the business in its efficient and productive operations? The answer to this is both a ‘no’ and a ‘yes’. No, because too much cost-cutting can hinder operations efficiency, and yes because knowing exactly which costs and up until how much to cut could be an effective and practical way to go about these expenses.
We often hear how consumers are advised to never economize at the expense of quality. This is because items that are overly cheap are more often than not surplus goods and may therefore turn out to be sub par in terms of quality. The key in any business transaction is to pay for something you know will be well worth every dime. As a matter of fact, such principle should not only be applied by consumers but as well by businesses. While business costs can be daunting, maintaining the quality, efficiency, and the productivity of your operations, goods, and/or services is still paramount to any other endeavor. That way, you will be able to win and sustain the market’s satisfaction.
Nevertheless, splurging is not necessary when it comes to keeping up with the quality and efficiency of the business operations. Sounds impossible? It’s not! The solution lies in knowing which costs should be retained and which ones should be minimized or totally forgo.
Here are some effective cost-cutting tips for many businesses:
1. Apply energy-efficient techniques in your office or business establishment.
Are you drowning in an overwhelming surge of utility costs incurred by your daily business operations? If you are, then perhaps it’s time you made some major overhaul in your consumption of electricity and other utilities. You can do this by making your building energy efficient, so that the working time of your HVAC systems can be reduced. Turn off all electric appliances and lights when not in use, and try to upgrade them from time to time so that you are able to keep up with the latest energy efficiency standards.
2. Make use of new and paperless marketing techniques.
The viral effect of social media networks such as Facebook and Twitter has made them the perfect tool for modern-day business marketing. Because of these facilities, there’s lesser need to print leaflets, brochures, and come up with highly expensive advertising schemes just to be able to expand the market. With just a few clicks on the Internet, people can already get a hold of your goods or services.
3. Invest on human resources outsourcing programs.
Hiring human resource firms can significantly help in increasing your business’ productivity, not to mention ensure that you are acquiring the services of the best job-hopefuls for every vacancy in your business.
4. Research on the needs and wants of your target market.
Having a better knowledge of the preferences of your target market will help you reduce costs by producing only what is needed and wanted by the people. Take for instance, if you know that the latest trend in mobile phones are QWERTY keypads and touch-screen technology, then it’s about time that you do without the old-school cellular phone keypads so that you can focus your investment on what the market will most likely buy. That way, more profits can be generated and surpluses can be avoided.
5. Restrict use of supplies.
Sometimes, we barely notice that we are already spending more than we actually should on supplies like reams of paper, staple wires, pens, and the like. This is because we take for granted the outflow of such items which can sometimes result in employee theft, overuse, and misuse. See to it that every dime you spend on the business goes to the business and not to abusive employees who are taking advantage of the laxness of your supply policies.
6. Tie up your suppliers.
If you are doing business with various suppliers for your goods or services, try to consolidate these business partners so that the risks can be reduced. Similarly, you can also save money because suppliers typically offer good prices for higher volume orders. It can also help minimize the money you spend on the processing and delivery of such goods.
7. Take technology to your saving advantage.
Ever heard of “virtual” meetings? Traveling expenses can be quite pricey especially if you’re sending out the entire board committee to an overseas meeting with a big client or partner. However, now that technology has advanced further, businesses can do without flying miles just to get a deal closed. With video chat conferences, it’s now possible to meet with prospects from different parts of the world without actually leaving the office. Isn’t it a great way to save time and money?
Cedric Loiselle is an experienced writer who enjoys imparting useful information to many readers. The topics he usually writes about include business and finance, home improvement, health, as well as legal issues.