Cutting Expenses in Business
Cutting expenses in business doesn’t have to mean terminating employees. Instead, involve your employees in cost cutting – they do the work every day so they will know if there is something that can be done better or more efficiently. All you have to do is ask.
A perfect example of this happened a few years back in a manufacturing operation where I was tasked with reducing overhead expenses. Scissors and snips were used daily by multiple employees at their stations. When the scissors were dull, the procedure was to order replacements. They had done it this way since the employees had been hired. If anyone has ever priced industrial scissors, you know how expensive. We are talking about @ $25-$45 a pair depending on the scissors. The employees thought it was a waste but that’s what they had been trained to do.
The solution was to have the on-site maintenance man sharpen them. The life of the scissors and snips was extended, which in turn saved the company a good bit of money every month. This wasn’t the only change but rather part of a larger cost saving initiative. It all adds up!
Do not accept the status quo just because “that’s the way we’ve always done it”. You would be surprised at all the “little” things that can save you money when cutting expenses in business.
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