It is no secret that inflation continues to be a problem. Prices on everything just keep going up. And of course, companies need to pay their employees more to keep up with the cost of living. We all know what that means. It’s time to tighten the belt. If your company is in belt-tightening mode, how are decision-makers trying to cut costs?
Cutting costs is never easy. It is made that much harder when a company is already operating as leanly as it can. Yet poor economic conditions do not discriminate. Even companies with very lean budgets suffer when inflation goes up and consumer spending goes down.
Every Little Bit Helps – Try Recycling
We don’t have any magic solutions. But we do have some suggestions, beginning with selling your scrap plastic waste to us. We buy and recycle industrial scrap plastic in seven states: Arkansas, Indiana, Kentucky, Michigan, Missouri, Ohio, and Tennessee.
We are fairly confident that you selling us your industrial plastic waste isn’t going to make your company wealthy. The amount of money you get might not even be enough to avoid significant cuts elsewhere. But every little bit helps. If you can turn your scrap plastic into revenue rather than sending it out with the trash, why not do so? It’s an added benefit that recycling is a sustainable business practice.
Tips for Cutting Expenses
We know what it’s like to face an economic downturn. Over the years, we have had to implement our own strategies to cut expenses were possible. So with that in mind, we would like to offer our readers some tips. If you cannot use any of them, spend some time researching online. There must be at least a few ways you can tighten the belt with as little pain as possible.
Tip #1: Take a Look at Miscellaneous Spending
Miscellaneous spending can easily get out of control in a business environment. The miscellaneous category is pretty broad in budget terms, so it isn’t always tracked in detail. Managers and teams can subsequently spend more than was originally intended. If you are looking to cut costs, we would recommend starting with miscellaneous spending. Run a complete analysis so that you can know exactly where the money is going. Then cut out what you can.
Tip #2: Take a Look at Pay Increases
Labor is the single biggest cost for most companies. Unfortunately, that means cost-cutting strategies tend to look to labor for the largest volume of savings. Perhaps rather than considering layoffs, it would be better to take a good look at pay increases. We are willing to bet that most workforces would rather accept a temporary freeze in raises in exchange for no layoffs.
Along those same lines, it might be necessary to put off filling those empty positions. That could mean your current team has to work a little bit harder to get the work done. But if faced with the alternative, working harder is a better option.
Tip #3: Consolidate Where You Can
Your company may be in a situation in which there is no more fat to cut. You’ve gotten rid of all the perks and extras. But perhaps you can consolidate in certain areas. For example, maybe your company does regular workforce training. Rather than conducting weekly sessions for a month, perhaps consolidate all four sessions into a single day-long session. Consolidating training could mean spending less money on it.
These are just some of the ideas we have picked up over the years. Hopefully, your company can find ways to cut costs enough to weather the current storm. We are rooting for you!