Cutting operational expenses to solve deficit issues and prevent staff lay offs requires a careful examination of the larger categories of spending.
Consider some of these cost saving ideas to help trim expenses.
Reduce Phone Expenses
Phone expenses, including cell phone and long distance expenses, can be reduced by shopping around for a better plan. If you have ten or more employees that expense cell plan charges and you are not on a corporate plan, consult local providers. Have an estimate of your current monthly and yearly spending patterns in mind when negotiating a new plan.
Reduce Travel (Flights, Hotel and Car Rental) Expenses
If travel expenses are a large part of your operational budget, there may be ways to trim expenses before having to ban traveling all together. To reduce travel expenses, negotiate a contract with a travel agent by committing to using them exclusively to book travel in exchange for discounts. Another alternative is to sign up for a corporate plan at a hotel chain or car rental chain and using them exclusively or if a plan is already in place, research a plan at a hotel chain that is one or one half of a star rating lower.
Reduce Office Supply Costs
Companies such as Corporate Express will give significant discounts for companies with multiple branch offices that spend a certain dollar amount annually. Alternatively, buy commonly used supplies in bulk if you have storage available.
Reduce Advertising Costs
Trim advertising budgets by placing display classified ads instead of regular display ads or inserting black and white ads in place of full color ads. Other options are to reduce the number of ad placements, reduce the size of regular placements, and look for niche print advertising options. Analyze the results of advertising over the past year and determine the most effective vehicles and eliminate the vehicles that did not produce impressive results.
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