Cost-Cutting Tips

When you find yourself in the position of reducing costs, you certainly do not want to affect the quality of your products or services or your team.

First we’ll walk through the expenses you DON’T want to cut.

1.  Your products and services do not and should not need to be affected. If you value your products and services, if your customers value your products and services, cost-cutting here should never be a consideration. On the contrary, if there are issues with your products and services you should consider putting more time, effort, and money into raising them to yours and your customer’s expectations.

2.  Your team should only be affected if there is dead weight. What do I mean by this? If you have warm bodies that are collecting paychecks without putting in the work and exceeding expectations, they should be considered in the list of cost reductions. Reducing the workforce may seem daunting but there are easy solutions, as identified below.

Assuming you have a productive team and cutting any member would yield more damage than good, let’s dive into how to reduce your expenses.

Cost-Cutting Solutions

There is a single common thread among your cost-savings solutions - external vendors charging you for their time, overhead, and surplus costs.

For Example:

External IT Teams charging $200+ per hour each time one of your team members picks up the phone and calls them with an issue; and/or $5000+ a month on top of any per hour fees.

The Reality:

In most instances, your team members can research and resolve their issue on their own, but you’ve graced them with an “easy-out of calling the IT folks” mentality, and they rely on that resource as your costs continue adding up.

Solution:

Start charging your employees each time they call the IT company. Of course, we know that’s not realistic. So, let’s retrain your team to research and resolve their own issues as often as possible.

The Optimal Solution:

Hire a single dedicated IT internal team member; and for an even greater savings, hire an IT contractor/consultant, such as www.jagconsultingsomd.com as a 1099 and assume the benefits package as part of your savings.

Conclusion: Take a few short moments to list all of your vendors and costs/fees they’re charging your company to see where hiring a single team member expert to your internal team or a 1099 consultant could shave thousands of dollars off your monthly and annual bottom lines. For example:

IT & Development Firms, Website Design Agencies, Sales & Marketing Firms, Advertising Agencies, Training Companies, etc.