At the last corporate webcast, your CEO delivers an optimistic review of quarterly results. Profits are up, revenues are strong, and stock performance is solid. But at the next departmental meeting, management unexpectedly mentions layoffs. Your coworkers exchange blank stares and confusion ensues. In the past few years, there have been acquisitions, facility upgrades and expansions. When did the company start experiencing problems? You wonder. This article takes you through Cost cutting strategies Ontario in downsizing.
To begin with, there is severing strategies that may compromise customer service. Most business owners tend to get anxious about the money and the cost their business is spending. And because they want so much to cut down these costs, the things that are usually sent out the door are the incentives and services that cater directly to customers. For instance, those entrepreneurs that have mainly online businesses may cut off the number of staff such as those tasked to entertain live chats for their website, as they see this irrelevant knowing that customers can simply send in their concerns through emails.
Reduce Labor Costs. Is there a faster, better way to perform repetitive, time-consuming business methods? As you examine your business processes, focus on streamlining the most labor-intensive tasks. Any reduction in labor costs equates to an immediate savings. For example, by automating a task that requires six hours of manual intervention, you can expect to shave two hours off the total time to completion. In most situations, you can cut that time in half, yielding a significant cost-savings almost instantaneously.
The other practice to avoid is foregoing employee benefits. This is in the same context as compromising customer service, only that it deals with the internal aspect of the company. The employees and staff that you have are the force of your company. If you think cutting down their mid-year bonuses to 20% won't affect the service they offer to your company, think again.
Reduce Error Handling. Manual processes are prone to human error. And trying to fix a self-inflicted problem wastes valuable time and money. Significantly reduce your margin of user-error by cutting costs through automation. Information becomes more accurate as mundane manual tasks are replaced by highly reliable automated methods, boosting profits and saving you money.
Value-added products and thinking future-oriented. Any product that no longer serves the needs of the customer or the business should be eliminated. Think future-oriented. Reducing jobs is a temporary fix. A focus on future growth strategies will keep a company afloat now and provide opportunities for additional expansion in the long-run.
Who knows, the economy might recover just a few days right after you cut your marketing costs and your business is nowhere to be found while your competitors have taken over the social media sites, papers, television and other marketing venues. Remember, business is selling your products and, or services, if there is one thing that you need to cut down on, it should never be your marketing budget, otherwise, your business might never sell at all.
Ultimately, the company will preserve its reputation, gain the trust of its workforce, and help drive down costs until the economic nightmare is over. Examine employee compensation plans more closely aligned with sales revenue. Partner with other businesses and suppliers to develop a win-win strategy. Participate in your Chamber of Commerce, and other business and professional associations - network! See what other businesses are doing, and what works!
To begin with, there is severing strategies that may compromise customer service. Most business owners tend to get anxious about the money and the cost their business is spending. And because they want so much to cut down these costs, the things that are usually sent out the door are the incentives and services that cater directly to customers. For instance, those entrepreneurs that have mainly online businesses may cut off the number of staff such as those tasked to entertain live chats for their website, as they see this irrelevant knowing that customers can simply send in their concerns through emails.
Reduce Labor Costs. Is there a faster, better way to perform repetitive, time-consuming business methods? As you examine your business processes, focus on streamlining the most labor-intensive tasks. Any reduction in labor costs equates to an immediate savings. For example, by automating a task that requires six hours of manual intervention, you can expect to shave two hours off the total time to completion. In most situations, you can cut that time in half, yielding a significant cost-savings almost instantaneously.
The other practice to avoid is foregoing employee benefits. This is in the same context as compromising customer service, only that it deals with the internal aspect of the company. The employees and staff that you have are the force of your company. If you think cutting down their mid-year bonuses to 20% won't affect the service they offer to your company, think again.
Reduce Error Handling. Manual processes are prone to human error. And trying to fix a self-inflicted problem wastes valuable time and money. Significantly reduce your margin of user-error by cutting costs through automation. Information becomes more accurate as mundane manual tasks are replaced by highly reliable automated methods, boosting profits and saving you money.
Value-added products and thinking future-oriented. Any product that no longer serves the needs of the customer or the business should be eliminated. Think future-oriented. Reducing jobs is a temporary fix. A focus on future growth strategies will keep a company afloat now and provide opportunities for additional expansion in the long-run.
Who knows, the economy might recover just a few days right after you cut your marketing costs and your business is nowhere to be found while your competitors have taken over the social media sites, papers, television and other marketing venues. Remember, business is selling your products and, or services, if there is one thing that you need to cut down on, it should never be your marketing budget, otherwise, your business might never sell at all.
Ultimately, the company will preserve its reputation, gain the trust of its workforce, and help drive down costs until the economic nightmare is over. Examine employee compensation plans more closely aligned with sales revenue. Partner with other businesses and suppliers to develop a win-win strategy. Participate in your Chamber of Commerce, and other business and professional associations - network! See what other businesses are doing, and what works!
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