Better Ideas for Cutting Your Biggest Corporate Costs

Better Ideas for Cutting Your Biggest Corporate Costs

Making a profit is the dominating factor for going into any business. To realize a continuous increase, cutting corporate costswhere you can is necessary. There are three broad areas to focus this strategy on which include labor and administrative costs, and business expenses. Here is a look at tangible tactics that can maximize resources and minimize costs for your company.

Labor Costs

The biggest expenditure of any business’s balance sheet is labor cost. While talent is the engine of any organization, taking steps to maximize this capital is critical. Technology has added a formidable tool to the arsenal with telecommuting. Companies such as Vonage Business have a new platform called Telesphere which helps to seamlessly blend the employees at home offices with cloud infrastructure and hosted VoIP communications.

Think about cutting costs by training workers to do more than one job. This option will also open up job sharing for times when employees are sick or on vacation. Build on this by incorporating a compensation time-off feature instead of paying compensation.
Limit the amount of conference attendance to local events that directly impact business critical functions and rotate the list of participates among employees that need this resource. Follow this with having the attendee present the information to the entire department. You can save money when you pay in advance and when fees are discounted.

Administrative Costs

Office space can be a costly expense, so consider renting space or even office sharing depending on the size and type of business. Control the cost of office supplies by placing one person in charge of distribution. You might also consider a central space for storage to make this effort more efficient.

Employ a platform to go paperless in appropriate departments with incentives to customers and employees for participation. Review all subscriptions and only keep those needed for company operations. Memberships are another area where cost can be lowered by paying the discounted rate for multiple years.

Business Expenses

While inventory for daily operations is essential, consider only maintaining what you need for a certain time frame, such as 30 days. When you do have to restock, look for bulk quantities that come with lower unit pricing. Shop around annually for required business insurance opting for as much coverage as possible while decreasing premiums. Enroll in auto pay, or pay in full for discounts that these options offer. Pay close attention to business taxes by staying abreast of, and taking all deductions and credits. Cut business travel, and find affordable chains with reward programs, so the points can be used for future trips.

Austerity business practices can be achieved painlessly with the right strategies. Focus on these three main components in any business model with a deliberate and thoughtful plan for cutting costs and saving the company money. This will help your profits increase, while your corporate costs are slashed.


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