Thursday, 28 February 2013

Simple - But Powerful - Cost-Cutting Measures For Businesses

Simple - But Powerful - Cost-Cutting Measures For Businesses

You do not need to be a company finance wizard to implement some simple cost reduction strategies that can significantly improve your business’ bottom line. Even during the best economic times, smart executives look for cost saving ideas for companies, because they know every dollar saved can become profit or can be invested back into the business. The most effective cost saving ideas for companies can reduce costs while also improving the operating efficiency of the businesses.

For many businesses, labor is the single largest expense. Any discussion of cost saving ideas for companies should begin with a focus on staffing levels. Are all of your employees working at full capacity? Are there redundancies where some employees are performing essentially the same work, or where one employee can easily absorb the responsibilities of another? Finally, reflect on whether certain tasks can be outsourced, Web support, administrative tasks, manufacturing, and call center operations are all candidates for outsourcing. Strategically executed staff reductions can save you money on salaries and benefits, while often increasing the efficiency of your business.

Look at your list of current vendors and consider soliciting competing bids. The amount you spend each month with insurance companies, retirement plan management companies, printers, janitorial service providers and other outside vendors is likely to be significant. Make sure you are getting the best deal. Ask your vendors to serve as partners in helping you to control costs. Some vendors may even offer cost saving ideas for companies and can show you how simple tweaks to the services you order can result in big savings.

A few simple controls on company travel can result in serious cost reduction. First, evaluate the conferences and trade shows you attend annually. Many businesses keep the same trade events on their calendars each year, even though research shows that the trade event industry has been suffering from declining attendance for years. Look at the events you attended last year, and consider how many bona fide sales leads resulted from the events.

Second, research holding meetings remotely. While there is still no substitute for meeting with clients face to face, some matters can be handled very well through mobile meeting tools. Web communications platforms like Citrix and Skype make it easier than ever to hold meetings with full audio, presentation, and video chat capabilities without leaving your office. Finally, establish daily spending per diems for employees who are traveling, to show them you are serious about company finance. Set guidelines for hotel, flight and train expenses, and consider partnering with corporate travel agencies that provide cost saving ideas for companies.

Computer equipment becomes obsolete after a few years, and office furniture wears out. So why would you want to own either one of them? Consider leasing your company’s computers and mobile devices. You will be assured that your company always has access to the latest equipment and software, and leasing companies often provide support and software updating services. This may save you significant money on information technology support costs. Renting office furniture allows you to easily replace desks, chairs and tables as they wear out, and it gives you the opportunity to try different furniture configurations with minimal financial risk. Leasing or renting computers and furniture improves company finance by allowing you to make one low monthly payment instead of spending tens of thousands or more on a purchase. This can immediately improve monthly cash flow.

When researching cost saving ideas for companies, be certain to speak with other business executives and owners. Entrepreneurs are creative by nature, and many will have developed cost-cutting measures that you may have never imagined.

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