In today’s economy we are seeing so many people being put out of work only to find that the company still ends up going bankrupt. Why is this? A big reason is because often times no matter how many employees are let go, the costs that the company has still ends up being more than what their profits are. Here are some creative ways where you can start cutting costs rather than cutting your employees.
- Enlist the help of everyone who work’s for you to come up with areas where you can cut costs to equal up to or at least close to the amount that you need to cut. In the end you may still end up having to let a few people go, but it will be a smaller number then it was before the brainstorming took place.
- Think about firing some of your costly customers. American Express cut out 2.7 million accounts because they had no balance or were inactive, this means the company was spending money to keep up these accounts even though they weren’t making money off of them, as stated on Bnet.com.
- Take a look at some of the resources and products that your company uses, are some of them extremely costly to your company? Is there another product that does the same job but costs less? If so, try cutting out the extravagant lifestyle of certain products and down size to a cheaper version.
- Go for cheaper tech. If your shop needs a tech upgrade but you can’t afford it, consider the cloud. Increasingly, businesses are finding they can do almost all of their computing with free or cheap services that store your data on remote servers — that is, in the cloud. Moreover, there is so much good free software nowadays, including office suites with word processing and spreadsheet software, that this is often a no-brainer.