The pressure to cut down on costs while offering added value is more rampant than ever. During tough times, the most common tendency is to concentrate on financial evaluation than transaction processing. Nevertheless, there is substantial money to be saved when organization processes are examined and refined. Below, are practical, cost cutting strategies Ontario that are relevant and easily applicable in the current market.
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.
Shorten Cycle Times. Examine your purchasing cycle. Does it involve too many manual processes to complete the sale? By automating routine tasks in the sales process, the purchasing cycle is shortened. Shorter cycle times mean that the money can come in much faster. Let us never forget, time is money!
It's a vicious cycle, but one many believe a necessary evil to sustain their future. Or is it? Ron Ashkenas, business blogger and consultant, argues there are three alternative strategies: keep it simple, value added products and future-oriented thinking. Keep it simple. As companies grow, needless positions and locations are added. This leads to a complex reporting structure and more costs. Instead, consolidating tasks and re-evaluating expansion efforts will keep short-term expenses to a manageable level.
It is also dangerous Cutting down the budget for promotion and marketing. This is yet another thoughtless response businessmen do when cost-cutting their business expenditures. Many entrepreneurs see the fluctuating economy as a sign to cut down their marketing budget believing that somehow it wouldn't affect their business. However, as unpredictable as the economy could get, you are risking your business' chance of getting publicized to probable customers.
Return-on-investment is important, but so is improving enterprise applications to deliver information in better, quicker, cheaper, and faster ways. These processes significantly affect your bottom line. Practical implementation can garner a competitive advantage, improve efficiency and productivity by at least 20% plus, increase sales by as much as 50%; a significant cost-savings by any standard.
Simply put, ensure to explore Various Options. Do research to ascertain what your customers really want, value, and need. Sometimes just asking them will help you figure it out. Your previous assumptions may be wrong. Re-examine your product/service line. See what improvements can be made to build your business and improve your competitiveness. Negotiate better deals with your suppliers. Take advantage of discounts. Explore creative marketing and advertising strategies.
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.
Shorten Cycle Times. Examine your purchasing cycle. Does it involve too many manual processes to complete the sale? By automating routine tasks in the sales process, the purchasing cycle is shortened. Shorter cycle times mean that the money can come in much faster. Let us never forget, time is money!
It's a vicious cycle, but one many believe a necessary evil to sustain their future. Or is it? Ron Ashkenas, business blogger and consultant, argues there are three alternative strategies: keep it simple, value added products and future-oriented thinking. Keep it simple. As companies grow, needless positions and locations are added. This leads to a complex reporting structure and more costs. Instead, consolidating tasks and re-evaluating expansion efforts will keep short-term expenses to a manageable level.
It is also dangerous Cutting down the budget for promotion and marketing. This is yet another thoughtless response businessmen do when cost-cutting their business expenditures. Many entrepreneurs see the fluctuating economy as a sign to cut down their marketing budget believing that somehow it wouldn't affect their business. However, as unpredictable as the economy could get, you are risking your business' chance of getting publicized to probable customers.
Return-on-investment is important, but so is improving enterprise applications to deliver information in better, quicker, cheaper, and faster ways. These processes significantly affect your bottom line. Practical implementation can garner a competitive advantage, improve efficiency and productivity by at least 20% plus, increase sales by as much as 50%; a significant cost-savings by any standard.
Simply put, ensure to explore Various Options. Do research to ascertain what your customers really want, value, and need. Sometimes just asking them will help you figure it out. Your previous assumptions may be wrong. Re-examine your product/service line. See what improvements can be made to build your business and improve your competitiveness. Negotiate better deals with your suppliers. Take advantage of discounts. Explore creative marketing and advertising strategies.
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