Recession Saving Ideas for Businesses
A recession often results in large cost-saving efficiencies because there is increased focus on cutting costs. The first step in knowing where the opportunities are to reduce costs is to examine fixed expenses, those that don't normally change based on the volume of business done. After that, take a look at your variable costs --- costs that rise and fall based on the amount of sales.
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Energy
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To save on energy, the Department of Energy recommends that you install programmable thermostats that adjust by time of day. If your place of business is closed in the evenings, have the thermostats automatically lower the temperature in the winter and raise it in the summer. Outside lighting such as parking lots should be controlled by a daylight and night sensor so the lights are only on during the appropriate hours.
Consider having an energy auditing firm inspect your facility, which will provide a list of recommended steps you can take to lower energy costs such as improving insulation.
Telecommuting
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Consider having some employees work off-site. This is easiest to do with outside sales people. With off-site work, you require less office space and related costs such as heating and air conditioning. According to Fast Company Magazine and a survey Cisco conducted of 2,000 of its employees, employees who telecommute were more productive.
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Outsourcing
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According to the Original Equipment Suppliers, outsourcing is a process where a company does not provide instructions to workers on how to do a job, but instead sets required objectives to the outsourced organization. CEOs see getting the necessary skills and capabilities to run their business as one of their greatest challenges; outsourcing helps address some of those challenges.
Outsourcing work to other countries such as for telemarketing and inbound call centers is less costly than having these operations in the United States. Today with virtual phone networks, you can integrate outsourced staff from anywhere and make it appear as if they are part of your business.
Strategic Alliances
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Marketing costs can be reduced by forging strategic alliances with other companies. With a strategic alliance, one or both companies endorse the other's products to their customers. This marketing approach is much less expensive than other marketing methods such as advertising and paying for salespeople.
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References
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