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5 Ways to Reduce Business Expenses

Icredit-squeeze-522549_1280n the face of slowing sales, economic downturn, high overhead or debt, some businesses will do whatever it takes to cut costs, including drastic measures they’d rather not take, like dreaded layoffs. But taking a look at how labor can be rearranged in your organization may save you some hard-earned money and allow for expansion without the overwhelming costs. Below are a few areas to consider when analyzing costs and how you might save big with the right employees.

1. Use financial ratios

Many businesses suffer from unexpected costs, large overhead, or overwhelming debt simply by not being aware of the warning signs. Utilizing financial indicators like industry averages or the gross profit ratio, which shows the ratio of profits to total sales, can assist businesses in knowing if their prices are too low or their costs, too high. Understanding the impact of your overhead costs can help you determine whether your profitability elsewhere is worth it or not. One cost that is sure to help is hiring an accountant to look over these figures once a year and sniff out signs of trouble. Knowing your warning signs can save you unexpected costs in the long run.

2. Consider cloudsourcing

On average, the cost of finding, hiring, and training a new employee is $4000. That number can be quite a bit higher depending on your market. When you add in payroll, sick and vacation leave, insurance, etc, increasing staff can be a huge undertaking financially. Depending on your needs, cloudsourcing may be right for you. Cloudsourcing allows you to hire qualified professionals who work remotely for a fraction of a cost. Some of the best and most experienced professionals out there are choosing to work for themselves. Sites like Elance or Freelancer are full of professionals in multiple areas who have posted their resumes and are willing to do jobs based on your needs, without the cost of a full-time hiring process and the included benefits. Using these services allows you to have a graphic artist, web designer, marketing specialist, or business writer available without keeping one on staff and on site.

3. Hire the intern

Sometimes there are hands-on tasks that need to be completed on site, or by someone who can commit to a more extended time than a cloudsourced employee. While many have looked to temp agencies to find local workers, using an agency can get expensive. Utilizing local trade schools, colleges and universities, however, offers a myriad of capable young people who will work for a fraction of the cost of a full-time employee and sometimes will work for nothing at all. Most internships opportunities help students to earn school credit and gain useful work experience for when they enter the job market, which makes them willing to work for low pay, and with no expectation of benefits.  Take a good look at what work you can offer to interns to cut your costs.

4. Outsource your call center services

For so many reasons, outsourcing your call center services can be much more cost effective than running one in-house. Regardless of whether you currently have an in-house call center, the truth of the matter is maintaining one requires a considerable investment. The cost of upgrading and replacing technology, including hardware, software, and equipment, needs to happen every few years. This is without mentioning the cost of facility rental or keeping a fully-staffed contact center.

By outsourcing your call center services, you ensure that all technology and systems are upgraded regularly to include the latest tech and highest quality, as well as a fully-trained staff held to performance standards that you determine. If your company has a global presence, an outsourced call center will be able to handle servicing foreign markets in their own language, as well as maintaining 24-hour service for your customer’s convenience.

ROI offers reliable and professional call center outsourcing for a variety of businesses. Fill out a free quote form to discover how we can help you reduce expenses.

5. Invest in training

Some jobs can be done not by experienced and highly-trained professionals who require a large salary, but by intelligent, willing individuals who are capable of being trained in their duties. Even better, hire someone to train them at a lower-rate than utilizing one of your experienced professionals and taking away from the work they already perform. Employees who are trained by their coworkers form bonds and turn to each other in the event of rising issues or conflicts, strengthening your workforce.
Consider the source of labor and source of spending in your organization. Small steps in these areas can mean big savings for your business.

 

Han Butler

As Chief Revenue Officer, Han specializes in developing clear, unique and compelling value propositions which disruptively differentiate products and brands in cluttered markets. Han has a passion for working with people on creating value and opportunity, both in companies and communities. Nothing is more rewarding than working with a group of fun and talented individuals to create something greater than we could accomplish individually.

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