lady with laptop

5 easy ways to cut overheads during a recession

So many businesses are in the position where they need to cut overheads but how do you do this without having to make anyone redundant or reducing their hours? How can you do this without having to trawl your financial reports? If youre looking for easy ways to cut your overheads during a recession, here are 5 steps that you can take.

Number 1

What processes can you automate or eliminate? What tasks can be passed down the hierarchy or outsourced to reduce wage costs and free up staff for work of a higher value? How can you streamline your workflow? What do you do for clients that doesnt really add value?

While the answers to some of these questions may take an initial investment, such as automating your processes, the increase in efficiency and productivity will save you in the long run.

number 2
team walking down street

Your employees are the ones on the ground, they are doing the tasks and are experiencing the potential problems and inefficiencies first hand so involve them. Ask them all the questions above that youve been thinking about yourself. They may come up with some great ideas that you havent even thought of.

number 3
Lady on phone

Make the first two steps a continuous process. For example, in every weekly team meeting, ask your team members to identify one thing which can be improved or made more efficient. If something hasnt worked or hasnt been delivered on time, analyse the process and see what changes can be made. If you give your team members new objectives that aim to improve the efficiency of the business, youll soon see that you will all start improving the way you do things naturally.

You cant afford underperformance normally, never mind during a recession, so now is the time to address this. While setting individual targets and having regular check ins will work for some employees, others will need a bit more support. Maybe they need more training in the areas where they are struggling or for a particular software. Maybe they need to be put onto a formal performance management procedure.

number 5
Two men high five.

Its all well and good talking about positive changes and implementing them, but you need to know if they are indeed making you more efficient and productive as a business. To do this, youll need to decide on your KPIs and you need to measure and monitor them. Once you have these figures, review them regularly, and youll be able to see if the changes you are making have been worth it.

You can reduce your overheads AND increase efficiency

The best changes, especially during a recession, are those that increase productivity as well as reducing your costs. That way, you dont have to let anybody go and you dont have to reduce hours. Its all about working smarter.

If you would like some more advice on how to reduce your overheads please click here to get in touch. 

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