Reducing expenses: Effective methods

In this article, we'll tell you about tried-and-true cost-cutting methods. We've studied each option and highlighted the main pros and cons.

Money must be counted

Try to calculate how much money you spend on advertising. Is it so effective that you have to spend so much. There are many "guerrilla marketing" formats described today that do not require large budgets. Of course, you will have to do the work of analyzing your advertising campaigns. But believe me, it will be worth it.

Pros
You will be able to build a plan of action. After all, before you take any action to reduce costs, you will find the holes. To do this, start counting. In terms of costs, after payroll costs, advertising costs almost always follow.

Cons
If you haven't counted your advertising budget, you'll have to do some painstaking work. Calculate what the money is spent now, measure the performance of different advertising tools. And only then choose effective channels.

What's in my office for you?

Office rental costs take away 15-20%. Think about it, do you really need an office? Many companies are moving to a "home office" format.

Here it is important to maintain a balance: not all employees are suited to the "work at home" format. If you decide to take this step, think of a system by which you will be aware of your subordinates' affairs.

Pros
Saving on a large office. For example, publishing house "Mann, Ivanov & Ferber" left only accountants in their office. Marketers, developers, and even human resources specialists work remotely. How do they manage to achieve these results? Guys honestly admit that they have long been building a system that works on SCRUM and maintain a rigorous accounting. The results are evident.

Cons
It is important to realize and accept that not every employee is suited for such a job. Some people need the control of their boss and communication with colleagues in the office. Another cannot concentrate at home in slippers and a bathrobe. With such an organization of working hours, it is important to take a competent approach to the selection of personnel.

Whoever is in charge, that's who's in responsible

If you have a lot of equipment in your corporate property, it is not surprising that it is often may require a repairing and there are costs associated with it. Shift some of the material responsibility to the personnel who use this equipment. After such innovations, equipment is treated more carefully. And there are fewer repairs.

Pros
There will be fewer breakages, the equipment will be treated more responsibly. But here it is important not to overdo it and to impose responsibility only for those breakages that are really the fault of the employee.

Cons
Employees will react to the idea with hostility. To avoid squabbles and sabotage, prepare in advance. Update job descriptions, clearly describe the state of the equipment, conduct training on how to work with equipment. And most importantly, clearly describe what to do with the equipment is not necessary and what responsibility for violations is foreseen.

Win - Win

Entrepreneurs and executives are more likely to outsource work to freelancers. Try reducing your staff by outsourcing some of your work. That way you'll increase the number of tasks you get done, but reduce the cost of maintaining office workers.

Pros
Websites that provide a platform for freelancers to communicate with customers are growing by leaps and bounds. The competition in this sector is high, and this means: the price for a good specialist in a remote location is lower than if he worked in the office; The quality of work is also growing, there is a good system of ratings and reviews at the freelancer sites; And the speed of work is higher than that of the same workers in the office. After all, on this labor market, payment is guaranteed only for fast, high-quality work.

Cons
To work with outsourcing, you need an employee who understands the subject at least superficially. He will have to write good-quality terms of reference and accept the work. This function is often performed by supervisors or managers.

Automate your processes

Turn to IT - workflow optimization solutions for help. If you are involved in distribution or retail, you can safely automate the control of sales representatives. Specialized software will help you do this.
For example, the ST-Mobi.com service optimizes costs in controlling field staff.

Pros
By automating processes such as reporting, monitoring trade journeys, making routes, you will reduce costs by several times. We told you about it in more detail here.

Cons
None.

P. S. If you are interested in ST-Mobi.com possibilities in terms of cost optimization, order a free consultation with our specialist, either by phone or using the chat window on our website.