Recession Business Cost Cutting
Save Money and Improve Business Efficiency
During a recession very few businesses have the luxury of being able to avoid making internal cost cuts.
However, as well as reviewing business spending companies should also look to improve their internal workings including business processes, communication and continuity planning.
This way you can not only save money, but also improve and strengthen your business operations.
Recession & Business Cost Cutting
- Save time & money
- Improve internal communication
- Protect business future
- Review process & project costs
- Review staffing & communication
- Review business risk & make continuity plans
Project and operational spending
Businesses need to cut any unnecessary spending especially on projects that don’t directly generate revenue. Review all business spending to see where savings can be made, but don’t be too ruthless the aim is to cut unnecessary spending not all spending.
Now is a good time for to renegotiate supplier contracts so that you can secure the possible deals for the longest periods. It can also be a good time for you to source additional, alternative or back-up suppliers so that you are never overly reliant on just one supplier.
Update business processes and internal systems
Many businesses are still using manual business processes and traditional paper based systems that consume valuable resources like time and money. By reviewing and updating your business processes management and systems where appropriate you can make significant cost savings while also improving your operational efficiency
No one likes the thought of having to make people redundant plus redundancies have to be managed correctly as they have many legal procedures that must be followed. If you need to make redundancies its best to get expert advice from organisations like Business Link and/or extra support from an experienced employment management consultant like Hedley Basford to make sure everything is handled correctly.
Happily there are other ways to make staff savings without the need for redundancies. You can review your staffing to see if you need to replace employees who have already left the company and to see if jobs can be combined to make better use of your staff’s time.
Flexible working like shift or home working can also be introduced as this is known to improve productivity and lead to more efficient working. Providing an organisation has the right cloud computing systems in place for flexible working.
Communicate with your staff
There is nothing like uncertainty to make staff nervous and get them gossiping. Problems real or imaged need to be addressed before they get out of hand. Try to discuss issues openly and frankly with your staff, always keeping problems in proportion.
In addition to highlighting and managing issues regular communication can help you make staff aware of their role in supporting the business through a recession. By using realistic targets with appropriate reward incentives staff can then become more active in saving the business money.
It’s always best to have a plan B, by reviewing the current known risks to your business you can identify ways to eliminate or reduce these risks. Plus making continuity plans gives you peace of mind knowing you are always prepared should the worst case scenario occur.
Typical areas to consider when reviewing risks to your business include:
- loss of key employees
- failure of supply from key suppliers
- breakdown of critical processes
- loss of key markets
- compliance failures
- competitive threats
- technological obsolescence
Once you have identified potential risks to your business the next step is to find ways to eliminate or reduce them. Once you have removed or reduced as many risks as possible any remaining risks (e.g. disaster recovery) need a plan of action and solutions in place.
Get help to improve your businesses efficiency
For extra help in reviewing your business efficiency and making cost savings businesses can secure the services of a good business management consultant like Hedley Basford.
Hedley Basford business management consultants are helping companies today to improve their business efficiency and beat the recession and we could help you too. For more information including a free half hour consultation contact us today.