Reduce Operational Costs

How to Reduce the Cost of Your Business Operations

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Establishing and running a business can be a costly exercise, and one that can take its toll on new ventures. This is reflected by the fact that an estimated 96% of all businesses fail during their first 10 years, which is an incredible statistic when you consider the number of ventures that are launched during each 12-month period.

One of the biggest challenges facing businesses revolves around cost management, as expenditure can soar as ventures start to scale.

It is therefore important to consider viable ways of reducing operational costs from the outset, as this will optimise your profits and improve your chances of achieving growth over time. Consider the following: –

  1. Pay Attention to Seemingly Insignificant Costs

This represents a good starting point for small business-owners, who can make significant reductions by targeting easy to overlook operational costs.

Take the cost of making voice calls, for example, which is crucial if you are to communicate successfully with clients and partners alike. Free communication services such as Skype have emerged to supplement the use of traditional landlines and smartphones, helping entrepreneurs to reduce costs without compromising on their accessibility.

In general terms, the best bet for business-owners is to use one type of voice call platform predominantly, as this makes it easier to budget and manage your costs. Most tend to rely heavily on the use of smartphones in the modern workplace, while using Skype to handle all of their video conferencing and long-distance call needs.

As this infographic shows, each geographic region has numerous area codes, which may impact on the cost of individual calls. This is why having a clearly defined communication strategy helps, and it ensures that you are able to monitor costs more readily and identify opportunities to save.

  1. Embrace BYOD (Bring Your Own Device)

If you are not familiar with BYOD, you are missing out on a seminal opportunity to reduce costs and empower your employees. When implemented across a secure, wireless network, this enables your staff members to use their own personal devices in the workplace and slashes your hardware costs considerably.

This includes the integration of personal smartphones and laptops into the workplace, while it transfers the cost of purchasing and maintenance to the user.

BYOD also creates additional benefits for your business. Most importantly, it optimises productivity by empowering employees to complete certain tasks (such as answering emails) outside of the workplace. This can increase the viability of your staff as individual profit centres, and this can reap huge rewards over time.

  1. Access the Global Workforce

In simple terms, there are two types of employee within any business. These are strategic and operations, and while the first determine a clear and continuous vision for the venture the second complete everyday work tasks.

While strategic and management roles should therefore be filled by permanent staff members, operational positions can easily be undertaken by temporary or contract workers. This offers businesses a chance to dramatically reduce their annual wage bill, while also adapting the skills of their workforce on the basis of each individual project.

This tactic is more accessible than ever before, thanks to the evolution of remote communication tools and Cloud technology. While it may also require an initial investment in terms of software, this will quickly be repaid during the course of the financial year.

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