At the last corporate webcast, your CEO delivers an optimistic review of quarterly results. Profits are up, revenues are strong, and stock performance is solid. But at the next departmental meeting, management unexpectedly mentions layoffs. Your coworkers exchange blank stares and confusion ensues. In the past few years, there have been acquisitions, facility upgrades and expansions. When did the company start experiencing problems? You wonder. This article takes you through Cost cutting strategies Ontario in downsizing.
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.
The other practice to avoid is foregoing employee benefits. This is in the same context as compromising customer service, only that it deals with the internal aspect of the company. The employees and staff that you have are the force of your company. If you think cutting down their mid-year bonuses to 20% won't affect the service they offer to your company, think again.
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.
Know Your Customers Better. Learn more about your customers by employing a customer relationship management (CRM) application tailored to meet specific corporate initiatives. This cost-cutting strategy embodies a customer-centric approach and is a very practical solution to outdated, paper-and-pencil processes. All data from each department are collected and organized to get a more accurate picture of your customer, making it easier to understand their wants and needs. Thus, your business grows by increasing customer satisfaction and retaining customer loyalty.
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.
Ultimately, the company will preserve its reputation, gain the trust of its workforce, and help drive down costs until the economic nightmare is over. Examine employee compensation plans more closely aligned with sales revenue. Partner with other businesses and suppliers to develop a win-win strategy. Participate in your Chamber of Commerce, and other business and professional associations - network! See what other businesses are doing, and what works!
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.
The other practice to avoid is foregoing employee benefits. This is in the same context as compromising customer service, only that it deals with the internal aspect of the company. The employees and staff that you have are the force of your company. If you think cutting down their mid-year bonuses to 20% won't affect the service they offer to your company, think again.
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.
Know Your Customers Better. Learn more about your customers by employing a customer relationship management (CRM) application tailored to meet specific corporate initiatives. This cost-cutting strategy embodies a customer-centric approach and is a very practical solution to outdated, paper-and-pencil processes. All data from each department are collected and organized to get a more accurate picture of your customer, making it easier to understand their wants and needs. Thus, your business grows by increasing customer satisfaction and retaining customer loyalty.
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.
Ultimately, the company will preserve its reputation, gain the trust of its workforce, and help drive down costs until the economic nightmare is over. Examine employee compensation plans more closely aligned with sales revenue. Partner with other businesses and suppliers to develop a win-win strategy. Participate in your Chamber of Commerce, and other business and professional associations - network! See what other businesses are doing, and what works!
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