flevyblog

Flevy Blog is an online business magazine covering Business Strategies, Business Theories, & Business Stories.
MANAGEMENT & LEADERSHIP STRATEGY, MARKETING, SALES OPERATIONS & SUPPLY CHAIN ORGANIZATION & CHANGE IT/MIS Other

4 Things You Can Do to Reduce Cost of Business

pexels-photo-669615 (1)Costs matter greatly when there’s a business to run. Successful business people know this and consider it to be an important factor.

It may be easy to keep an eye out on the costs and watch over every dollar spent when the business is small but things begin to get out of hand once the business starts to grow and this becomes one of the main reasons for a business to shamble.

There are various ways to cut down costs and drive a business to new heights.

Here are five things you can do to reduce the cost of business:

1. Announce Less Meetings

Time is money which is why you need to drive employees towards working all the office hours except for lunch breaks. However, this isn’t achieved when you announce frequent meetings.

It’s true that meetings are important but if you look at it, there’s no work being done in a meeting but just planning. You can save time by avoiding unnecessary meetings. They do not only make people perform less but also result in a waste of scarce resources (employee hours).

So avoid meetings when they are not needed and send emails instead. Also, if a meeting can be done online (audio or video call), then avoid having to travel. This will not only help reduce travel costs but time as well.

2. Rethink Marketing Strategy

Many businesses make the mistake of sticking to age old marketing techniques, and get poor ROI.

Rethinking marketing strategies can help a great deal, especially if you are sticking to long gone marketing strategies such as print ads etc., because they produce less output today.

Turning to social media to carry out marketing campaigns can help. Even if you hire a social media marketing expert, it will help save a great amount of moneys because you’d be spending on the right strategy and getting more satisfying results than before.

3. Automate Tasks When Possible

Performing tasks manually not only costs you time but money as well. Many businesses still work on doing things manually, resulting in a wastage of time and money.

The solution to this problem lies in implementing software that can automate tasks when possible such as maintaining the inventory, keeping an orderly record of sales etc.

These software can help reduce cost by speeding up processes and eliminating the need to hire more hands to do the work manually.

4. Retain Older Employees

Letting an older and experienced employee leave is letting your investment walk out of the door. When an employee is hired, a considerate amount of time and training is spent on them. They gradually gain experience and become an important part of your business. However, tiny mistakes can cost you to lose such employees.

Make sure to work on retaining employees as it is also a lot cheaper than hiring new employees.

5. Import Goods from Abroad

You do not have to buy everything from the local market as local products are quite expensive. You can instead turn to countries like China where products are offered at cheaper rates.

You can turn to a company like Idea Sources to import goods for you from China. These goods are usually of high quality but available at more affordable rates.

Follow these simple tips and improve the bottom line today.

About Shane Avron

Shane Avron is a freelance writer, specializing in business, general management, enterprise software, and digital technologies. In addition to Flevy, Shane's articles have appeared in Huffington Post, Forbes Magazine, among other business journals.



Complimentary Business Training Guides


Many companies develop robust strategies, but struggle with operationalizing their strategies into implementable steps. This presentation from flevy introduces 12 powerful business frameworks spanning both Strategy Development and Strategy Execution. [Learn more]   What does it take to achieve Operational Excellence? Read this guide and learn to build an integrated Business Execution System from Six Sigma Master Black Belt Frank Adler, co-founder of Operational Excellence Consulting. [Learn more]
The Fiaccabrino Selection Process (FSP) is a proven methodology for increasing sales and reducing turnover, developed by "Mr. Roche," Charles Fiaccabrino. Mr. Fiaccabrino is a Sales Executive with over 50 years of experience. [Learn more]   Learn this time-tested approach to Change Management authored by Ron Leeman, recipient of the Change Leader award by the World HRD Congress in 2012. Ron Leeman has been Change, Process and Project professional since 1974. [Learn more]
Recent Articles by Corporate Function

  

  

  

  

  


The Flevy Business Blog (http://flevy.com/blog) is a leading source of information on business strategies, business theories, and business stories. Most articles have been contributed for management consultants and industry executives with over 20 years of experience. If you would like to contribute an article, please email our editor David Tang at [email protected].

Flevy (http://flevy.com) is the marketplace for premium business documents, such as management frameworks, presentation templates, and financial models. Our documents are of the same caliber produced by top tier consulting firms, like McKinsey, Bain, Accenture, BCG, and Deloitte. Learn more about Flevy here.


Connect with Flevy:

   
  


About Flevy.com   /   Terms   /   Privacy Policy
© 2018. Flevy LLC. All Rights Reserved.