When there is a weak sale and increasing expenses, the company needs to start thinking of ways to cut their expenses. Before doing so though, you should consider all options first and make sure you are doing an effective cost cutting and not just decreasing your expenses for the sake of thinking that you are saving.
Start with the management
If you think you got enough or more than enough employees already, then stop hiring. Make use of what you have and give them additional trainings as needed instead of hiring a new one that needs whole training. If there is a task that needs to be done, ask someone who knew how to do it and give them a set time to work on it.
Review your Administrative expenses
If there is a need for a new tool, check if it is cheaper to rent it for the meantime rather than buy a new one. If the need to buy is high, get it from your partner companies where discount is higher. Ask employees to use the equipment as designed and for office related works only. If you can possibly go paperless in the office then do so instead of printing and wasting papers and inks. Utilize the technology you have like emails and chat programs.
Review your current marketing plans
Why are you spending more and earning less? Why sales is too low or why no one is getting your service? Check your marketing strategy at the moment and why it is ineffective. Review your competitors’ and figure out how to match theirs. Reinvent your marketing plan and see for good results. For marketing ads that are not working, eliminate them completely.
Cost cutting can be done without sacrificing your employees’ bonuses or employment. Look and around and start working on how to improve the business without spending much first before starting to cut people out from your business.
There are many things to be in running your own business. One important of the most important things you need to do, you must know how to be a great manager. In order to improve your business and have enthusiastic workforce to be productive you must be a great manager. Here are some tips on how to be a great manager.
Happy to help
Even if you are full of activity, you should still be happy to help your employees. Not only is this for their benefit, it is for your benefit as well; if they do not know how to do something and you do not help, then you may wish you had helped later on.
If you could just take a few minutes every so often to ask your employees how they are, then your relationship with employees will be a lot stronger. Your employees will appreciate the fact that they are actually a person to you and not just a number.
Treat them employees equally
If you give one person a bonus, then everyone needs to receive a bonus, otherwise there will be some problems around the office; unless of course, the person that is receiving the bonus specifically deserves it. You cannot show that you have a favourite employee, even if you do, because the other employees will not like this.
How the business is doing
Let everyone know how the business is doing. Don’t keep everyone in the dark about how the business is doing because employees do want to know. If the business is doing well, then everyone will be proud that they have done something right.
Becoming a great manager will not only be beneficial to the business, it will also be beneficial to your employees. If you are aiming to create a successful business, then becoming a great manager is an essential part of this process.
Despite the fact that you might not need to spend on space or building rent, there are things that you still need to consider financially before starting a business at home.
The need to make both ends meet at the first three months
Since you are starting in the business, say you have a catering business, not so many people knew about your business yet. If there are people who needs catering service, they might have it scheduled in advance already so expect less earnings for the first months. Make sure to have enough funds to cover your expenses for the first months like payment for utility bills and employee salaries fi you have any.
The need for knowledge about the business you are starting
So you heard a friend that all you need to have is a cook and cooking utensils and you can start your catering business- this is a common misconception. Starting a business doesn’t end in providing the necessary tools to start it- it also needs knowledge and careful planning to make it work! Before starting your own catering business, why not study other catering businesses near you or attend a seminar.
You might forget the importance of marketing
Small businesses will definitely have customers for sure which includes family members and their friends. But you need to have more customers to earn hence you must have a marketing campaign as well. For small businesses, word of mouth and referrals are the most commonly used way of advertising but giving out flyers and posting some ads in the business center area won’t cost too much either.
It is true, you don’t need to have too much money or too many marketing gimmicks to make your home business grow but at least you need to have some to make it work. Enough is not enough to survive especially since the start of business, you are already spending money out.
Customer Relationship Management or CRM is one of the most known software used today by businesses to maintain strong relationship with their customer. If you are wondering why, here are the things that this software does to help business works and succeed.
It helps customers service to improve
CRM is a program that tracks all the information about the customer hence if they calls customer service, everything populates including their previous calls and reasons for calling. Just by looking at CRM, the representative assisting the customer would have a vague idea on what is going on and without the need to call other departments, they can easily provide information to the customer like order information or service information.
Imagine if your business has different branches all over the city and you want to track your sales records or say rental records if you have a video rental business. CRM is your solution. It is centralized that every information entered and save on the said software can be visible to all users anywhere in the globe. It is cost-effective hence your employees doesn’t need to scribble information from time to time or to sue memo or sticky notes anymore. Just use CRM and save the data there.
It helps you profile your business
With CRM, you can group your customers accordingly. You can profile it base on their location and have a data about which area receives most complaint and why. Through CRM, you can identify the specific needs of your employees and be able to focus on them and find ways to resolve it.
For big businesses that often cater to millions of customers, CRM is a very effective tool to use. It can cost a lot for small time businesses but it can be considered as an investment for future use once the business is more established and has more customers to track.