Focus on People, Place and Process
When most businesses need to cut costs, they typically lay off personnel. This logic seems to makes sense since approximately 70% of all business expenses are staff-related, according Mike McRitchie, a Small Business Profit Analyst and Strategic Advisor for Critical Path Action, LLC.
However, when you lay off employees, it has a residual effect on the ones left behind. Morale goes down while workload goes up, and the remaining office staff is left to dialog and speculate if they will be next on the chopping block.
Here are 6 creative ways to keep your staff employed and your business in the black.
Focus on People
Allow for Telecommuting and Flexible Scheduling.
According to Global Workplace Analytics, roughly 80% of workers they polled consider the ability to work from home a great PERK. In addition to saving money and time in their cars or public transportation, they can be accessible to their small children and/or aging parents.
When things are financially tight, you may have some employees that welcome the move from full- to part-time, and the ability to have work hours that revolve around their family’s schedule.
Hire Interns When Attrition Occurs.
College interns can be a great way to reduce your overall costs. You will be paying someone, who is earning college credits, a much reduced rate and with no benefits. In addition, they will be willing to do all the small tasks that still need to be completed that your regular staff didn’t get around to completing.
Focus on Place
Sublet Extra Office Space.
If you implement telecommuting and flexible scheduling, now is the time to take a total inventory of your office space. You may find many of the offices and conference spaces are never or rarely used. This is the perfect opportunity to sublet the space on a short- or long-term basis.
If you decide to go the short-term route, one of the key markets can be business contingency services, where businesses that have a need for space due to a crisis (i.e. Act of God, arson, theft) or due to expansion needs for a few months (i.e. accountants, lawyers) are interested in your space.
How do you get the word out? Let all your contacts know, put it on your website or advertise the space on Craigslist.
Focus on Process
Upsell Existing Clients Instead of Cultivating New Ones.
According to Econsultancy, 70% of companies they surveyed said it is less expensive to retain existing clients than attract new ones. In addition, according to Critical Path Action, it costs 6-7 times more to acquire a new customer than retain an existing one.
This is probably no surprise, but keeping these statistics in mind, now is the time to focus on special offers and upsells to your existing clients, and put less focus on new prospects. In addition, polling your client base to determine what they want is another way to determine latent demand.
Require More Cash up Front and Have Shorter Payment Cycles.
Instead of waiting for client payments after the work is completed, ask that 25% of the bill is paid up front. In addition, once the work is completed, ask that the payment be made upon receipt or within 10 business days.
Leasing equipment saves your organization precious cash outlay, allows your organization to have the most up-to-date equipment, and includes replacement and maintenance of equipment if something goes wrong.
Hartford Technology Rental Can Help You Save Money
We will work with you to find the technology solutions that best suit your organization’s needs and budget guidelines. Contact a Hartford Technology Rental representative today to learn more about ways our business can help yours!