There are simple and effective cost cutting measures for business
which they can implement and have effective management. Read this
article to know more on the numerous ways of having a leaner business
structure.
When you are venturing out for starting a new business you should surely think of cost cutting. Though, it is not restricted to only new businesses. Every company or business firm has some measures in place which allow them to contain the spendings on their business. We will see the cost cutting ideas in the following paragraphs. These are applicable to both, small as well as large organizations.
Administration: One of the important tips is to decide on what is absolutely necessary to have in a business or company in terms of basic requirements like furniture, elevators, lights, toilets, etc. That is how you can have an effective management of the affairs of your business.
Non-Popularity: Similarly, companies which are involved in manufacturing and production, they can reasonably save by researching and getting similar machines which are either locally made or else of companies which are not so well-known. However, it is needless to say that along with the research of such organizations, quality is not compromised. But first and foremost issue is to get over the fact that only the known big brands will help you serve better.
Maintenance: Closely following this factor what comes next is the maintenance. Maintenance is more applicable and appropriate for cost cutting in small businesses because the production is comparatively much lesser than otherwise. Maintaining the machinery comes in handy as a sure shot way of cost control strategy in the long run as there are very less chances of damage, hence, contributing to the longer life of the machinery.
Marketing: The main chunk of funds go into marketing and advertising your business. By thoroughly studying the market and aiming exactly at your target audience and, appropriate time, placement of adds, the duration, etc. can be one of the good cost saving ideas for companies. Alternatively, always refer to the earlier marketing strategies implemented by the company. Studying and noting its reasons of failure or the drawbacks will churn out a marketing plan showing more positive results.
Personnel: Another important cost cutting measures for companies is personnel management. Firstly, hire eligible, qualified and efficient personnel. This is directly proportional to the output and net result of production. Secondly, newcomers, freshers and interns should be hired for helping and assisting with smaller issues, for example, formatting the lay out of the content on the Internet if you are a company that deals with content writing.
Electricity: A major cause of concern for not only global warming but your pockets too! Save on the electricity bills by closely monitoring the requirements and timings of electrical appliances. For example, turning off the excess lights during day time, during lunch hours, the air conditioners when natural air can make do, etc. Also, invest in energy-efficient appliances. It will cost you more initially but it not only has a long life but will remarkably cut down the bills too.
Mails: Other things to be considered for cost cutting measures is restricting the usage of papers i.e. encouraging use of emails instead of the traditional snail mail. Efficient and cheap method that also contributes towards saving the environment.
Incentives: More focus should be given on the salaries and incentives of employees rather than providing them with recreational or extra facilities. This diversion of funds will keep the employees in good spirits!
So these were some cost cutting measures for business as well as companies. Hope it provided useful tips and helps you. If you have any suggestions or additions to these you may please add it here through the comments section given below and share it with others.
By Torque Earnest
Last Updated: 10/1/2011
Read more at Buzzle: http://www.buzzle.com/articles/cost-cutting-measures-for-business.html
When you are venturing out for starting a new business you should surely think of cost cutting. Though, it is not restricted to only new businesses. Every company or business firm has some measures in place which allow them to contain the spendings on their business. We will see the cost cutting ideas in the following paragraphs. These are applicable to both, small as well as large organizations.
Administration: One of the important tips is to decide on what is absolutely necessary to have in a business or company in terms of basic requirements like furniture, elevators, lights, toilets, etc. That is how you can have an effective management of the affairs of your business.
Non-Popularity: Similarly, companies which are involved in manufacturing and production, they can reasonably save by researching and getting similar machines which are either locally made or else of companies which are not so well-known. However, it is needless to say that along with the research of such organizations, quality is not compromised. But first and foremost issue is to get over the fact that only the known big brands will help you serve better.
Maintenance: Closely following this factor what comes next is the maintenance. Maintenance is more applicable and appropriate for cost cutting in small businesses because the production is comparatively much lesser than otherwise. Maintaining the machinery comes in handy as a sure shot way of cost control strategy in the long run as there are very less chances of damage, hence, contributing to the longer life of the machinery.
Marketing: The main chunk of funds go into marketing and advertising your business. By thoroughly studying the market and aiming exactly at your target audience and, appropriate time, placement of adds, the duration, etc. can be one of the good cost saving ideas for companies. Alternatively, always refer to the earlier marketing strategies implemented by the company. Studying and noting its reasons of failure or the drawbacks will churn out a marketing plan showing more positive results.
Personnel: Another important cost cutting measures for companies is personnel management. Firstly, hire eligible, qualified and efficient personnel. This is directly proportional to the output and net result of production. Secondly, newcomers, freshers and interns should be hired for helping and assisting with smaller issues, for example, formatting the lay out of the content on the Internet if you are a company that deals with content writing.
Electricity: A major cause of concern for not only global warming but your pockets too! Save on the electricity bills by closely monitoring the requirements and timings of electrical appliances. For example, turning off the excess lights during day time, during lunch hours, the air conditioners when natural air can make do, etc. Also, invest in energy-efficient appliances. It will cost you more initially but it not only has a long life but will remarkably cut down the bills too.
Mails: Other things to be considered for cost cutting measures is restricting the usage of papers i.e. encouraging use of emails instead of the traditional snail mail. Efficient and cheap method that also contributes towards saving the environment.
Incentives: More focus should be given on the salaries and incentives of employees rather than providing them with recreational or extra facilities. This diversion of funds will keep the employees in good spirits!
So these were some cost cutting measures for business as well as companies. Hope it provided useful tips and helps you. If you have any suggestions or additions to these you may please add it here through the comments section given below and share it with others.
By Torque Earnest
Last Updated: 10/1/2011
Read more at Buzzle: http://www.buzzle.com/articles/cost-cutting-measures-for-business.html
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