Cutting costs: maximizing results
Updated: Mar 30, 2020
In these times, cutting costs has been a difficult decision for business owners. How do we cut costs without losing our ability to function efficiently as a business? Often times, businesses cut costs by laying off employees or cutting consultant hours.
Let's rethink the strategy of downsizing our staff. If you want to increase your bottom line
and maximize results, you need a talented and reliable team to back you. While it's tempting to target staffing since it's one of the largest expenses, I urge you to consider other cost savings measures.
Paper: Are you still printing brochures and other marketing materials? Are you printing reports and contracts? Going through reams of paper and ink? Most businesses have a love affair with paper and the operations behind it such as large printers, ink, maintenance contracts can drive your operations costs to 15%. Get rid of that printer, ink and paper and move to digital. Email your marketing materials. Post them to Facebook. Attach your invoices to an email. Use digital signature programs like DocuSign and Adobe. Store your files in the Cloud.
Office Space: How often does your client visit your office? Do your employees need to go to an office to plug in their laptop? With all of this great technology, we can work from any location that has wifi. Why have an office? Office leases are long term and expensive. Move to remote work. This will result is significant savings.
Narrow your Business Focus: Many business have multiple layers and functions to diversify its portfolio. That business model works for some businesses, but for others, a diverse portfolio can increase costs. Consider focusing on one subject matter, and do it well. I met a restaurant owner who worked full time at a hospital, and managed a breakfast eatery. Her eatery was very successful - lines out the door everyday. I asked her how she did it. She told me she only focused on making 4 things: eggs, bacon, toast and pancakes. It was simple and easy to execute.
So, take a hard look at your business costs. You need your team to be successful. Keep them. Reconsider your business model and how you operate. I'm sure you will find ways to reduce your cost and maximize your business!