It’s important enough for businesses to operate cost-effectively when times are good, but when the state of the global economy is what it is; neither great nor showing any sign of improvement, the need to reduce business operating costs increases exponentially. Although businesses may not be able to increase their revenue during lean economic times, they can however, cut their business operating costs – without affecting their service standards – in order to better weather the storm.
Tips for lowering your business operating costs.
Create a dynamic budget that works
Don’t make the mistake of creating a budget once a year and never consulting it again, create a dynamic budget and continually consult and alter it as need dictates. The budget you created at the start of the year might very well be a very different one to what you need a few months later, so continually consult and alter your budget, you’ll find you’re better able to operate and move with the times.
Relocating for lower operating costs
Although not always an option, the reduction in operating costs that can be achieved by relocating to a more affordable office space with flexible terms and conditions is remarkable and a surefire way to operate more cost effectively. An MWB serviced office could be just what your business is looking for, for in addition to an affordable workplace that offers a high degree of flexibility, your business will also benefit from an enhanced business image and the excellent networking opportunities that arise from working in close proximity to other businesses.
Business Graph – Failure by George Hodan
Reduce office supplies and expenses
Reducing the amount of supplies your office consumes can significantly reduce your operating costs and result in a more favourable bottom line. There are many ways to reduce expenses around the office whilst still providing your clients with an outstanding level of service, starting with the amount of power your office uses. Ordering all your office supplies from the one supplier may entitle you to discounts and you can also often reduce expenses by buying your supplies in bulk.
Continue to invest in training for your employees
Although you’re looking to reduce costs, it will however prove advantageous to continue to invest in training for your employees. Your employees will be able to provide your clients with higher standards of service which will lead to word of mouth referrals – the best form of marketing about – and they’ll also feel much better about their position and therefore feel more engaged and more inclined to produce work of a high quality.
Continue to invest in marketing to increase business exposure
Once again, although you’re trying to reduce your business operating costs, there’s still a need to invest in marketing to increase the amount of exposure your business receives. In tough economic times it’s natural to look at reducing marketing budgets as a means to reduce costs, but you have to bear in mind that if there ever was a time in which your business needs exposure, now is it. This is however, a great time to look at more dynamic, effective methods of marketing, and if you can source cheaper marketing services that produce equal to or better standards of work, go for it.
Outsource where possible
Reducing your dependence on fulltime staff is essential during periods of lean economic growth, and even more so during times of economic stagnation. Numerous office tasks and duties can be outsourced, and in many cases the standard of work produced by an outsourcing agency far exceeds that which would have been performed in-house, and at more cost effective rates too.
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