This is a guest post written by our partners at MultiplyMii.
In combating the effects of rising prices, companies now gear up to find solutions to the million-dollar question: how to reduce business costs in 2022?
Let’s face it: running a profitable business has become even more difficult nowadays. Inflation rates are starting to hit the ceiling, with the cost of living increasing as we head into Q4 of 2022.
And worse? This trend isn’t likely to go away anytime soon.
Times like this make it extremely challenging for businesses to remain productive and efficient. Keeping your business afloat with high labour prices and higher overhead costs seems impossible.
But don’t worry. It’s not the end of the world!
How to Cut Costs and Increase Profit During Q4 Inflation
These six simple steps will help you optimise two critical parts of your business that drive success: a high-performing team and systematised processes.
Solution #1: Outsource remote professionals, not “VAs”
If you’re navigating the eCommerce space, hiring general virtual assistants to help you run your business seems the right choice. After all, remote work is the new norm, and more companies rely on VAs to execute their operations.
However, outsourcing specialised talent, specifically Filipino professionals, will effectively reduce your labour costs compared to hiring general VAs. Here’s why:
- They are equipped with in-depth expertise.
One of the long-term risks of hiring general VAs is their lack of in-depth expertise. Business owners spend more time and resources training a generalist VA to execute tasks properly and fulfil their responsibilities. You can cut that cost by outsourcing talent with a specific area of specialisation.
- They are capable of resolving high-level problems.
Remote professionals can help you reduce the cost of doing business by addressing issues and concerns even without your assistance. They are highly proficient in their expertise, have excellent problem-solving skills, and can offer advanced solutions to specific concerns.
- They are more focused and career-driven.
General VAs typically juggle responsibilities and work for several clients at once. As a result, they are less focused on their goals and commit costly mistakes.
On the other hand, dedicated professionals don’t just focus on finishing a task. They also prioritise their career growth, which empowers them to work more eagerly in reaching your goals and strengthening their skills.
Solution #2: Create an Organisational Chart
One key area where MultiplyMii specialises in is Organisational Chart planning and creation. It’s an essential asset for businesses, especially those growing in size.
Here’s how a well-structured Organisational Chart can help you reduce the overall cost of doing business:
- It creates accountability. This serves as your employees’ reference point in identifying who does what. It provides a clear reporting structure!
- It eliminates work overlaps. With a clearly-defined and well-managed Organisational Chart, you can rest assured that there is no redundancy in roles and responsibilities.
- It helps you create a solid plan. When you have the right people at the right seats, your planning sessions are much smoother and more systematic.
Solution #3: Set up clear KPIs and performance management schemes
If you’re wondering how to cut costs and increase profit simultaneously, KPI-setting will do the trick. It’s an essential part of measuring the performance of your team and your business as a whole.
Performing daily, weekly, and monthly check-ins will also help you keep track of your team’s deliverables and ensure they are on the same page.
Solution #4: Conduct ongoing education
When you have employees who consistently grow and improve in knowledge, skills, and experience, you can rely on them to meet your company’s goals and exceed your expectations. Plus, there’s no need to hire extra manpower. That’s less cost of doing business on your part!
MultiplyMii helps businesses conduct ongoing education to ensure employees maximise their full potential.
Solution #5: Create and implement SOPs
Documenting your processes will eliminate costly problems such as overproduction, inventory excess, and unnecessary tasks. A Standard Operating Procedure (SOP) will save you from this massive financial loss. You can browse through Escala’s free SOP library to help you standardise your business processes.
Solution #6: Integrate technology into your workflows
Here are some good examples:
- Productivity Monitoring Tool – Tools like Hubstaff, Timely, and ProofHub can provide you with real-time data, including the efficiency of your staff.
- Project Management Tool – This tool enhances your project planning, scheduling, and execution. It makes it easier for your team to collaborate with members through file sharing, task delegation, prioritisation, and more.
Key Takeaways: How to Reduce Business Costs
Today, global companies are leveraging MultiplyMii and Escala’s solutions to prepare effectively for challenges like this. You can sustain your business through effective people and process optimisation in a marketplace where prices are on the rise.
The steps we shared in this guide will help you increase your business efficiency and productivity while keeping your expenses at a minimum.
- Outsource specialised remote talent
- Operate with an Organisational Chart
- Track progress using KPIs
- Conduct training and performance check-ins
- Implement SOPs
- Use workflow tools and resources
That’s how to reduce business costs this quarter and the next!