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Remaining Profit Oriented :Steps to Cutting Cost

Spearheading the affairs of a business during this pandemic can imply escalated cost and reduced revenue which for small and medium sized companies may lead to the folding up of the business due to negative cash flow. A negative cash flow occurs when the business makes payments for materials tools maintenance and employees. if this flow is not accurately checked and managed to be balanced by income or revenue, then the business is set to incur losses.

In this article we will discuss four tips from experts to stay profitable or break even in these restraining times.

MORDENISE YOUR MARKETING EFFORTS

Modern methods don’t always have to be expensive. Review your current marketing plan and find out what is working and what is not. Place more emphasis on networking, referral selling and word of mouth and step up your customer retention campaigns to encourage inexpensive advertisement.


INCREASE PRODUCTIVITY/EFFICIENCY

Like often said, wasted time means wasted money. Use technology to automate the boring and repetitive tasks at the work place. Assess critically the skills and experience of each of your employees and assign them roles which would be most suited for them. A more fixed structure will improve efficiency and improve levels of production.


EXPLORE NEW WAYS OF DOING BUSINESS

The small business environment is small and can be greatly affected by the slightest change in external environment like the COVID-19 pandemic. In order to grow and stay competitive, you must be willing to try new ways of doing things. To stay ahead of the competition, you must be innovative and eager to execute and try out new ways of doing things. Dive into your marketing, sales and networking methods and probe ways of stepping it up in order to be distinct.


TELECOMMUTE

Renting an office, paying bills or managing a physical office can cause a big drain in your budget and resources. Telecommuting is a sure way to cut cost and improve business operations.

With the amount of connectivity available today, siting in an office and working from home is almost indiscernible. if you decide to use an office, consider using green energy as much as possible. Replace light bulbs with energy saving ones and reduce waste produced as much as possible.



Writer: Joseph Obeng Junior

Editor :Herbert Afriyie

Published by : Kelvin Mbir


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