In Part 1 of this series last week, we showed you how you could take several measures to reduce your organization’s overall expenditure. Here are some more measures you can take to reduce your business expenses:
Seek alliances/partnerships. B2B expenses take up a huge chunk of any budget. This is especially applicable for small and medium companies that are on a growth trajectory. As the company grows, there is a need to upgrade your existing software, premises, maintenance contracts, etc…
Instead of an out-and-out financial transaction, businesses could gain from finding companies that they can have an alliance or a strategic partnership with. Not only can they barter their products/services but also share common expenses and create greater value for all concerned stakeholders. take the case of an HR Consultancy and a SaaS provider for example. They could form an alliance wherein they both barter their services as their services complement one another.
Make smart hiring decisions. There aren’t too many bigger drags on expenditure than unnecessary hiring. It is simply a waste to hire a resource who isn’t adequately utilized. Many organizations tend to create a workforce that is in excess of their requirements.
If you have a sudden workload or if you have a cyclical business, look to employ freelancers or interns instead of full-time employees. Full-time employees increase expenditure significantly as they require maintenance, bonuses, and other perks apart from a salary. Also, do not hesitate to outsource several functions if they are not your core competencies.
Review past decisions. Most of us have a tendency to look only to the future. Where will my next leads come from? How much budget to allocate to each function? What kind of people should I hire going forward?
To make good decisions for the future, it is very important to review and analyze past decisions to know what you’ve done right and what you’ve done wrong. Say, you allocated a budget $X to a department and for four quarters they have under-utilized it, isn’t the difference better off in the coffers of some other department that needs it more? Analyzing past decisions could help provide a roadmap for the future. A business intelligence software will be of great help in this case!
Know more? Let us know!