Smart Ways For Businesses To Tighten Their Belts | #CP

It’s important to keep a close grip on your company’s finances even when things are going well. If you only do this when you hit a bump in the road, then it’ll probably be too late. The best time to tighten belts and solidify your company’s financial position is when things are going well. 

Of course, reducing your expenses should not result in reduced productivity or output. In fact, the opposite should be the case. It should make your business better. In this blog, we’re going to run through some of the best tactics for keeping costs down without any loss of performance. 

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What Can Go?

To begin, it’s a good idea to conduct an overview of your current expenses. As with our personal lives, the costs related to running a business tend to build up and up over time. And if we’re never taking a moment to cut some of those costs, then we’ll end up spending more money than we need to. So take a look at everything that you’re spending money on. Are they all still relevant to/needed for your business operations? Then they can go. 

If you don’t know how to analyze your expenses in this way, then consider bringing in an outside consultant to do the job. 

Keep Your Staff Happy 

One of your biggest expenses will be related to labour. However, though it sounds counterproductive, it’s usually best to spend more on your staff than less. Why? Because you’ll spend much more money if you need to hire new people all the time. If your staff are happy, then they’ll be more likely to stay with you. It costs a small fortune to advertise for an employee, go through the hiring process, and then train the new recruit. As such, you should try to save on that, rather than on your employee’s salary and benefits.

In the Office

Your office will also likely eat up a large portion of your expenses. But there are plenty of ways to keep those costs down. You could introduce a hybrid work model, which has your employees working some of the time at the office, some of the time at home. You could also look at how you’re heating your workspace. The red diesel price per litre is cheaper than other heating sources, for instance. More broadly, you could look if it’s possible to downsize to a smaller office/facility. There’s no point paying for dead space!

Take Another Look At Suppliers

Another way to reduce costs is to look at your suppliers. If you’ve never shopped around before, then now could be the time. If you’ve been with your currency suppliers for years, then there’ll probably be a cheaper option out there. Not that this means you necessarily have to switch companies.. You can make the same deal to the company that you currently work with. If you have a long history of working together, then there’ll probably be happy to match the offer of the new company.