How to Cut Costs From Your Business and Still Succeed
As we’re approaching the end of the year, now is a great time to take stock of your business expenses. Chances are, there’s a long list of potential ways to trim costs for your business. So how do you decide what can be cut or reduced, without sacrificing quality?
Let’s look at some expense-trimming efforts businesses can make to save significant money and still maintain the high quality that keeps customers coming back.
Tackle supply costs
Supply costs are an area that small companies should consistently be looking to cut waste. You can reduce supply costs by continuously price shopping and buying at a discount. Businesses should also always be on the lookout for alternate suppliers, and not assume they’re currently getting the best deal. Especially if you find a price significantly better than what you’re scoring now, it’s a good bet your current supplier will be willing to negotiate.
Optimize production to trim expense
Your production costs are undoubtedly a major part of your expenses, so care should be taken to ensure you’re operating as efficiently as possible. For many businesses, production costs can be reduced a great deal by moving to outsourcing.
Outsourcing services will not only help you cut production costs, but they can also increase your flexibility and quality. That’s because top-notch outsourcing services will have the in-depth industry experience and talented workforce necessary to provide the best outcomes quickly and cost-efficiently.
Get people-smart
Employees are a critical asset to any business, particularly one that is focused on providing quality products and outstanding service. Payroll is typically one of the company’s single, most significant budget line item. According to the Bureau of Labor Statistics, average labor costs fall in the area of 20-30% of a business’s total costs, but depending on the industry, they can be much higher. Business leaders should analyze their current costs, compare them against industry averages, and take action to right-size them if possible.
Ways to reduce labor costs include:
â— Hiring interns for routine work, such as administrative or duties typically assigned to young hires or part-time workers.
â— Hiring freelancers to help with more specialized or short-term work.
â— Outsourcing specific tasks””especially ones that are time-consuming and require multiple employees, like assembly, kitting, and fulfillment.
Consult with an expert
Another smart move is to consult with an expert that can offer you extensive knowledge in critical areas of your business. Ohio Valley Goodwill’s Industrial Services Division has partnered with companies in many different industries to explore how outsourcing services can not only help them cut costs but also improve service and quality.
Meet with Goodwill’s executive management team to explore how, together, we can help your business ““
â— Shorten lead times
â— Lower overhead costs
â— Increase warehouse space for your inventory
â— Leverage a flexible, trained workforce
Ohio Valley Goodwill’s business-to-business outsourcing services offer businesses in Cincinnati, Northern Kentucky, and Southeast Indiana access to a large and diverse skilled workforce of highly-motivated people. We help your business operate more efficiently while you gain the satisfaction of knowing you are helping people in your community with disabilities find meaningful work. For a free quote and tour of our facilities, please contact us today!
