Cutting costs: Lean but profitable

Whether start ups, SMEs or large businesses, one of the common issues that constantly pop up is using less to achieve more, or at least remain relevant in their industry.

Cost cutting is the order of the day and companies look for ways to save and still maintain their business standards, and also commitment to both their clients and employees.

Some companies have resulted to downsizing and later realize that some key people have been laid off and this affects major parts of the business, especially those related to key accounts and sales,where clients have a fondness for such employees who have been an extreme value add to their business growth.

Today we would be sharing some tips to guide you with having a lean approach yet remaining profitable

Tip 1

Identify areas your monthly costs are high.This could be the budget allocated to travel, transportation, meet ups with clients and so on.

Most of the time, you realize where there are not stop gaps, there is room for irresponsible behavior, which may not be intentional but still affecting the business.

This may also be an issue with the leadership and executive management who sometimes struggle with change.

Tip 2

Where is the company headed in the next 3 to 5 years and who are the clients and employees that would be part of this journey.

These are times to eliminate waste in resources and time. Some clients sadly have been a weigh bill for too long. And it is time to separate the wheat from the chaff. This also affects employees. Some are being put in roles that are clearly not profitable to the company, a shift would be required especially when through performance and training reports, their strengths are in other areas that would be to the advantage of the company in the long run.

Tip 3

Carry everyone along. This includes clients, employees,suppliers, and even the cleaning crew and cleaners. When it is transparent and clear the vision of the company and everyone's role, they are not only held accountable for their actions but they are also part of the big picture and can decide if they are in or out. This way the company moves ahead with only team players.

Tip 4

Encourage work life balance. Working long hours does not mean working effectively.

Employees stay back browsing and chatting online,making use of the company resources just to impress their supervisors that they are first in last out.

Monthly bills can be saved when this is eliminated.

Tip 5

Implement and Measure continuously. Most companies do either or for a time frame then stop.

Learn to stop and see how your plans have worked out.

Take surveys and get feedback.

Encourage the change agents and motivate the struggling team players then train those that still need help.

Weed off those who constantly refuse to change but considering all the support that has genuinely been offered to have them remain in the team

These tips are simple and easy yet overwhelming if not done as a team with the full backing of the leadership and management.

Try it out and let me know how you fare.

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For those that need professional support, please write us as well and we would be glad to work with you.