Cost cutting has become an important method in all firms
Have you recently purchased an office space? Do you have limited capital in hand? Are you finding it difficult to meet all the expenses with the limited capital in hand? Are you looking for ways in which you can reduce the expenses? Well, then you must go ahead for cost cutting, which has now become a common factor for all companies, especially the newborn firms. With cost cutting you can easily save a lot of bucks which you can use for fruitful purposes. There are furnished plug n play office spaces at whitefield for which the rentals start from Rs 50 / sq ft to Rs 95 / sq ft if it’s in a tech park. Cost cutting simply indicates reducing expenditures that are not necessary. Cost cutting can be done in various spheres of office work. Starting from the building rent to employees’ expenses, cost cutting can be properly fit in all the spheres of office function.
The perfect formula for cost cutting while running having an office
There is no need to practice the cost cutting formula year after year. This is essential in the initial years when the company has limited budget in hand to
meet the expenses. For small and medium scale firms, cost cutting may prove to be the best method of good cash management and it should be focused upon throughout. There are some firms that do not understand the importance of cost cutting and hence tend to ignore it, especially during high revenue earning phase. But always keep in mind during the growing phase it is essential to focus on cost cutting, irrespective of the revenue you earn. If you find it difficult to determine the areas of cost cutting, then it is essential that you hire a financial advisor who can guide and advise you regarding the same.
Making detailed expenditure charts helps in unnecessary expenses
Are you wondering about the areas where you can reduce the expenditures in detail? Well, then you need to continue reading the article. Starting from the rental charges, you can easily reduce the building rent by paying the landlord in advance. We have more than 35 furnished plug n play commercial spaces at koramangala which starts at Rs 45 / sq ft onwards. Advance payment can certainly enable you to get high discounts. Again, you can also do cost cutting on the maintenance. You need to jot down the overall maintenance expenses and then judiciously strike off the expenses that can be eliminated. Like, if you have hired a regular cleaner on a full time basis for your office space, then you can easily switched off to commercial cleaning services. Professional cleaners may charge high but in return you can get cost effective services. In fact, it can eliminate the need of regular services, which means you can pay only for the number of days you sought after the services.
Tips on Eliminating or reducing unnecessary expenses
Apart from that you can also do cost cutting at the production department, maintaining the quality at the same time. You can save electricity expenses by switching off the machinery during breaks as well as monitoring the production closely in order to eliminate any cost that is incurred in the idle employee time. You can also reduce unnecessary expenses made by the employees. Like, you can keep the stationery item requirements, refreshment drinks and beverages expenses etc. under control. You can even reduce the office expenses by outsourcing some of the work and hiring trained candidates to avoid the training expenses.