There are two ways to cut costs. One is by butchering down your business, and the other is by improving efficiency. Whilst scaling down operations is undoubtedly preferable to having your business close its doors, it is worth looking into the latter before making any extreme changes that may affect your success down the line. The ultimate goal is to implement business growth in an uncertain economic landscape.
Little things like updated inventory systems can make a world of difference. You can click here to find out more about what is new in the world of barcodes and how these could help you in the process. It is precisely in these more minor and often overlooked aspects of your business that you stand to achieve the most by optimizing.
A New Staffing Paradigm
So that does not sound like a small change? We apologies for the dramatic subheading, but it emphasizes our point. You could change requirements regarding where and when different staff members work. Why should you have a member of your staff sit in the office from nine to five when their workload does not justify it? Cutting down on staff hours may seem unkind, but it beats the alternative of retrenchment.
Taking this to the logical next step, why should your staff need to work at designated premises at all? Most of the work your employees do tends to be digital, the kind of tasks they could very adequately perform from home. This small change in implementing a remote work environment for your team can save thousands in office rental expenses.
Less is Less; and That is a Good Thing
A massive burden on efficiency is the diversification of operations. Simply put, the more stuff you have on offer, the more logistical challenges and expenses you are sure to incur. This includes more staff, perhaps even paying salaries to people who serve only a redundant purpose specific to a single product.
Trimming the fat, so to speak, alleviates the strain of additional expenditure, and mitigates the risk of sitting on large volumes of products that do not sell all that well. If it is not a cornerstone of your business’ income, cut it, or at very least halt operations until expanding becomes viable again.
Hitting the Apex without Cutting the Corner
Cutting corners is a term synonymous with bad business practice, and for a good reason. It implies taking steps beyond the most feasible acceptable practices to cut costs. This is usually synonymous with illegality, and that is certainly not what we are suggesting.
What we recommend is to understand every facet of your industry, thereby seeking opportunities to minimize on redundant measures in product and service delivery. As an example, it is indeed illegal to force staff to work more hours per week than legally permitted.
It is not illegal to outsource the same work and take the strain of delivery someone else’s problem. What this measure speaks to is fine-tuning every aspect of operations in a way that is far more specialized than standard practice would demand under normal economic circumstances.