Do you currently own and operate your own business? What is the purpose of your business? Ultimately, it’s to make money, right? It’s to increase your income while keeping your costs low, or rather, it’s about increasing your profits so you can survive and thrive on this earth. Within your business, there are countless things that you could do that would impact your bottom line. Which are right? Which are wrong? Sometimes you don’t know until after you’ve made decisions and they’re being implemented, but you learn none-the-less.
What happens when you typically make a point to reduce costs? Well, if it has anything to do with the personnel of your company, then productivity will most likely go down, which might actually negatively affect your bottom line. So, this is an avenue you definitely don’t want to go down, but what are some cost reduction strategies that won’t negatively impact your output? As I see it, you can head down two different roads with this, but there isn’t a third road to be found. If you find some gravel tracks in the distance, stay away from them. Here are the two boulevards you’ll want to drive on: (1) Excess capacity/space, and (2) Technology.
Excess Capacity and Space
If you have a 10,000 square foot manufacturing building, but you are only using 6,000 square feet of it, you are not fully utilizing your space are you? Most likely, you just don’t have the orders that would be necessary to expand throughout the entire manufacturing floor. If your future plans only envision a use of 7,000 square feet in the next 10 years, perhaps it’s time to release that additional space (perhaps can divide it and sell the unused space to another local company) and save on those property costs.
Perhaps you have excess capacity. If you have 30 employees, but your current and future workload only require 26, then it’s time to release 4 of your employees. It’s a cost that you can do without, and it won’t impact your sales. As a result, your costs will decrease and your profits will increase.
For many tasks, mechanical arms are much faster and more precise than humans. By investing in technology, you can often reduce your costs and increase your output. There may be an upfront cost, but with the increased efficiency, you should quickly recoup your initial investment.
There are some technological changes, however, that do not have a large upfront costs and can have an immediate reduction in your expenses. SIP trunking, for example, is one of these technological changes. Instead of using your ISDN line, InTechnology can use a SIP trunk and create a single line for both data and voice. This completely eliminates the need for and ISDN line and can immediately save you 70% of your data and voice costs for your company.
Not only does this SIP trunk reduce your costs, but it also creates some other benefits as well. You can now have free calls between sites, free DDI rental, you get increased resilience, and you have the option to quickly add extra call capacity. Make the switch today and save money on your technology.