How not to optimize expenses in a company

[Mimaktsa10]

This is not a quick process if you want to get the financial result you need. Otherwise, the quality will suffer, which no company, of course, wants. A number of mistakes that owners and managers of companies can make during optimization:

Dismissal of employees. When you reduce the staff as much as possible, you must understand that the remaining staff has a significantly increased workload and overall volume of tasks. In this regard, the manager no longer does his job as well.

What's the best way? Train specialists, improve their qualifications, which will increase their motivation.

Salary cuts. It is unlikely that a romania email list good manager will work effectively, or even stay in the company, if he loses his usual salary and monetary motivation system such as bonuses and salary supplements.

Saving on products . The most common mistake is to replace high-quality, expensive materials and resources with cheap, dubious alternatives. Imagine that a confectioner starts using cheap glaze in culinary masterpieces instead of good chocolate. That is, such cost optimization will occur at the expense of quality reduction.

The pastry chef's regular customers will not be satisfied with such a replacement, even if the product becomes cheaper. Remember that customers agree to pay a high price if they are confident in the quality of the product or service provided. This method will definitely ensure the loss of customers.

Cutting the budget for marketing tools . If a company starts to reduce advertising expenses, it will lose the opportunity to interact with the target audience and receive important data. It is optimal to find more effective advertising channels and develop them, abandoning ineffective ones.

Not all expenses negatively affect the company's budget. Some investments help to earn even more money and attract customers. The point is in the competent distribution of the budget.

Download a useful document on the topic:

Checklist: How to Achieve Your Goals in Negotiations with Clients

Frequently asked questions about cost optimization
Being in a situation where there are no guarantees about what will happen tomorrow, businesses should approach changes in the management of enterprise costs with the utmost responsibility.

What happens if we leave everything as is, without rationalization?
Let's consider two possible outcomes.

The first is that the manager does not worry about the company and believes in its success. But if the problem period drags on for a long time, no company will be able to stay afloat for long. At some point, bankruptcy will occur. Here, it is worth starting from how financially stable the business is and how long the hard times will last. After all, the goal of cost optimization is not just to survive, but also not to lose the quality of services and goods.

The second outcome is that the business manager is set for growth, even if external circumstances are an obstacle. Optimization of the organization's expenses can and should be carried out, even if the company is quite successful in the market. This will only play a positive role, increasing the marginality and stability of the business. It is easier for such a company to survive difficult periods.