business team using a tablet

How to Cut Costs From Your Business and Still Succeed

As
we’re approaching the end of the year, now is a great time to take stock of
your business expenses. Chances are, there’s a long list of potential ways to
trim costs for your business. So how do you decide what can be cut or reduced,
without sacrificing quality?

Let’s
look at some expense-trimming efforts businesses can make to save significant
money and still maintain the high quality that keeps customers coming back.

Tackle supply costs

Supply
costs are an area that small companies should consistently be looking to cut
waste. You can reduce supply costs by continuously price shopping and buying at
a discount. Businesses should also always be on the lookout for alternate suppliers,
and not assume they’re currently getting the best deal. Especially if you find
a price significantly better than what you’re scoring now, it’s a good bet your
current supplier will be willing to negotiate.

Optimize production to trim expense

Your production costs are undoubtedly
a major part of your expenses, so care should be taken to ensure you’re
operating as efficiently as possible. For many businesses, production costs can
be reduced a great deal by moving to outsourcing.

Outsourcing services will not only
help you cut production costs, but they can also increase your flexibility and
quality. That’s because top-notch outsourcing services will have the in-depth
industry experience and talented workforce necessary to provide the best
outcomes quickly and cost-efficiently.

Get people-smart

Employees are a critical asset to any
business, particularly one that is focused on providing quality products and
outstanding service.  Payroll is
typically one of the company’s single, most significant budget line item.
According to the Bureau of Labor
Statistics
, average labor costs fall in the area of 20-30% of a business’s total
costs, but depending on the industry, they can be much higher. Business leaders
should analyze their current costs, compare them against industry averages, and
take action to right-size them if possible.

Ways to reduce labor costs include:

●     
Hiring
interns for routine work, such as administrative or duties typically assigned
to young hires or part-time workers.

●     
Hiring
freelancers to help with more specialized or short-term work.

●      Outsourcing specific tasks—especially ones that are
time-consuming and require multiple employees, like assembly, kitting, and
fulfillment.

Consult with an expert

Another
smart move is to consult with an expert that can offer you extensive knowledge
in critical areas of your business. Ohio Valley Goodwill’s Industrial Services
Division has partnered with companies in many different industries to explore
how outsourcing services can not only help them cut costs but also improve
service and quality.

Meet
with Goodwill’s executive management team to explore how, together, we can help
your business –

●      Shorten lead times

●      Lower overhead costs

●      Increase warehouse space for
your inventory

●      Leverage a flexible, trained
workforce

Ohio
Valley Goodwill’s business-to-business
outsourcing services
offer businesses in Cincinnati, Northern Kentucky, and
Southeast Indiana access to a large and diverse skilled workforce of
highly-motivated people. We help your business operate more efficiently while
you gain the satisfaction of knowing you are helping people in your community
with disabilities find meaningful work. For a free quote and tour of our
facilities, please contact us today!

MENU