A business is concerned with two things – earning more, and spending less. Of course, this is how it seems on the surface. Perhaps this is the idea we have of the shrewd 20th century capitalist in a top hat, smoking a fat cigar with a sheepish grin on their face. The reality is much more complex. Businesses can almost be defined as variable as the number of businesses that have been registered.
That being said, while businesses are often hyper-aware of how to earn more and spend less, that isn’t the end of the equation. For example, if businesses were able to spend 20% less each year by vastly cutting the job satisfaction and healthy office culture of their workplace, they know this isn’t worthwhile. Some things are more valuable than incremental savings, regardless of the blowback.
That being said, how could a business aim to reduce costs up to 20% without taking those hardline, soulless measures to do so? Is this even possible? Thankfully, the answer is yes, and the longer answer is as follows:
Better Procurement
Better procurement does matter. It can even help you cut thousands of dollars a year in unnecessary expenditure, as well as sourcing the best suppliers, not those you should feel some kind of unwarranted loyalty to. After all, goodwill is important as business, but not being taken advantage of is essential. With the best effective category management to shed light on these affairs, you can fix your procurement issues using specialized services and the willingness to offset some of this expertise to those who know how to help you.
Fixing Issues
They say an ounce of prevention is worth a pound of cure. That being said, a pound of cure is certainly worth a tonne of unexpected patches and temporary fixes over time. Addressing the symptoms is not the main cause here, and while it may take a sizeable investment to path a real issue such as problems with your cloud computing, switching to a new web host or moving to another manufacturer entirely, if it helps you fix the holes in your ship, who knows how much money you could save in a few years from now? It’s this kind of inquiry that is often the most valuable.
A Higher Quality Of Staff
Investing in your recruitment systems, finding measures to hire from a better talent pool (perhaps through headhunting), applying better psychometric and knowledge tests when screening candidates and seeing how adaptable they are can lessen your staff turnover, increase productivity, and improve the office atmosphere you hold.
Remember that your staff is comprised of people, and while they are more than a system, it can be worthwhile to take a systemized view of things. Is one department suffering a higher amount of resignations or transfers compared to another? Why is this? Is it something you may focus on? These questions are important.
With this advice, you’re certain to reliably save money each year.
