reduce operational costs

5 Effective ways to reduce operational costs

How to reduce the operational costs without compromising on the service quality? The rising business cost, tight margins, it is not easy for organizations especially the startups that always look for ways to generate better revenue (but with reduced overhead costs).

Below we have a collection of 5 best effective ways to reduce the operational costs.

  • TELECOMMUTE
    • Renting office may give your business a professional touch, but if you are backed with a wafer-thin budget, that factor may go for a toss. Technology has grown by leaps and bounds; people are communicating and even conducting business without actually meeting their partners in person (over the internet), so why not you do the same?
    • Whether you sit in an office or at home, you can easily work and communicate with your employees.
    • It is a clear message that you can do business over the internet rather than spending on utilities and other stuff.
  • OUTSOURCING
    • Who doesn’t know about outsourcing? Everyone knows, from startups to Fortune 500 companies, everyone prefers to outsource, why?
    • It’s not always the bad economic conditions or tighter credit crunch (for startups), but everyone loves to save as much as they could and sometimes are too distracted to perform those repetitive tasks. But one thing, the outsourcing arrangement is sure to have its positive impact on the primary goal, which is obviously the cost reduction.
    • The outside vendor, who demands less of your money and time, will guarantee a good return on investment.
  • EMBRACE THE TECHNOLOGY
    • Today, it’s not working hard, it is working smart. Entrepreneurs looking for reducing their operational costs should nothing but approach the technology.
      • i. Automation
        • The routine tasks (repetitive) tasks can give you a daily dose of a headache, what does that mean?
        • The global pressure is full on; will you just concentrate on the non-revenue generating tasks and hurt your business?
        • No, go with a smarter approach; bring in automation and witness cost reduction, increased productivity, and enhanced performance.
      • ii. Move to Cloud
        • Whether you have a multi-currency business or a simple cupcake business, the data concerning your business should be always secure. Hiring resources and manually managing data can be both expensive and precarious.
        • Data within the cloud is both safe and economical.
  • MODERNIZE THE MARKETING EFFORTS
    • A business with recognized brand is more than what one can ask for. Paid advertizing is something that cannot be stopped, at least for some time. Now let’s go through few simple ways to modernize your marketing efforts,
      • i. Send Personalized emails (Marketing Automation)
      • ii. Develop Content relevant for both search engines and users
      • iii. Adopt Video Marketing
  • GO GREEN
    • The utility bills, monthly office supplies, no matter how small your business is, such minute privileges can give you exorbitant bills.
    • So go green, install more windows for better ventilation, that way you can cut back on using expensive cooling gadgets. Also, use email for communication and switch to fluorescent light bulbs as they are four times more efficient than regular bulbs.