Nowadays, it is different in modern history to own and run a small company. We have to decide every day how to increase the profitability of our businesses. Cost reduction steps are available in all forms and sizes and with different extremes. The hardest part of this is to balance cost reductions with our standard of service and efficiency. As we invest and save, we must determine the long-term effect on our firm. Have we lost so much for a fist full of dollars when we ruin spiritual or team spirit? When we went too far, how do we know?
I read the cost reduction steps of Chrysler today, and I applaud them to try to save money wherever they can. One of the actions they were taking was to remove every clock in their business office, saving them $20,000 a year in batteries. This seems to be very serious, maybe you have to wear a watch to work and each one has a mobile phone. This looks a little strange, but battery $20,000 is a little bit bizarre to say time. In order to minimise our costs this year our town has cut salt on the road by 50%. I live in a small town in southern Maine. Increased injuries this year were caused by this drastic measure. Some financial talents choose to sacrifice $100,000 in security for a whole city. Where are we going to draw the line?
1. Don’t reduce the level of service, customers always dine and want good service.
2. Don’t lower your quality; using frozen fish rather than fresh, you might sadly be mortgaging your future company as a cost-saving measure in the short run.
3. Don’t cross out the menus and write down new costs. Reprint, consumers think you’re going to go out and look tacky.
4. Pay attention to detail; ensure that the uniforms of your server are displayed cleanly and carefully. We’re tired of a brittle uniform of fraying cloth.
5. Do not down heat your customers so low that they dine on their coats. 5. (I know that on your heating bill you’re trying to save money; the reality is that heating an empty space costs more than it costs to a complete one. If the heat is too cold, your customers will not go back to dinner.)
6. Be aware of and help your local customers all year round.
7. Do not cut your advertisement dollars, ensure that you wisely spend them and be sure that all the dollars you spend are measured.
8. Do not interrupt the charity; gift cards are a simple way forward without breaking a bank, to sustain the community. It is vital to remain present as a caring company in challenging times in your local community.
These are suggestions of mistakes that business owners frequently make; each person has his or her business formula or budget. The important thing is to keep your numbers up and change the formula or budget every day as necessary. Today, I read an article on MSN money. Jubak discussed how spring is starting to show that the economy is in the early stages of some jobs and development. It will take time and we must all be patient. Take the extra time to stick with the programme and take it for your recovery. When the recovery is achieved, businesspeople who have not lost quality of service will be willing to expand even faster than their rivals.
Knowing who you are and what your business is about is extremely important. You need to ensure that you “never” sacrifice who you are and what you stand for to cut the cost and cut the cash from your budget. We are positioning our companies and creating our brand. Don’t destroy years of hard work over a short-term crisis, deal with your strategy and how to save money without compromising.