Most businesses attempt to cut expenses using conventional strategies, such as paying people less or switching to cheaper suppliers. However, these approaches always come with costs, (such as employees quitting), creating false economies. You might be saving money in the short term, but if your customers aren’t happy, you’ll lose it in the long run.
Fortunately, there are some often-overlooked ways to reduce your outgoings that don’t adversely affect the quality of services you provide. Here, service quality remains the same (or gets better) but the actual amount you pay out goes down.
Consolidated Business Cost-Cutting Examples
Investing in software-as-a-service (SaaS) is a prime candidate for cost-cutting, according to seasoned entrepreneur, Benjamin Naderi. Consolidating all network resources in the cloud under a single platform or subscription reduces on-site costs considerably while improving service quality.
Travel and accommodation are also amenable to consolidated business cost-cutting. With the help of external agencies, firms can often reduce individual travel costs by paying in bulk. This strategy improves bottom-line figures and also enhances employees’ travel experiences.
Telecommunications are another good candidate for consolidation. Brands can often lower their outgoings significantly by getting a third-party firm to manage their cell phone plans for them. These agencies can find cheaper tariffs, uncover invoicing errors, and help companies navigate confusing industry jargon.
Businesses should also consider working with complementary firms with similar marketing objectives. For instance, mortgage brokers can benefit by aligning with real estate agencies to find customers, reducing their independent marketing costs while improving corporate results.
Lastly, a version of consolidation is available at the staff level, too. Because employee spending can be an issue at some firms, entrepreneurs who get their teams together at the start of the year to discuss their budgets can address unproductive “padding.”