Reducing costs in times of rises
In these days of rising inflation and the situation on the eastern border, it is difficult to talk about stabilizing prices in the market. Many businesses, as well as households, are faced with rising costs. However, there are effective ways that can help reduce unnecessary living or business costs.
Table of Contents
1. Reducing the cost of doing business
The essence of saving money in businesses is to take care to increase efficiency while reducing expenses where possible. However, savings should not be made at the expense of employees or the environment. Here are some examples of how to rationally reduce the cost of doing business, in accordance with the concept of Lean Management.
You can avoid the costs of hiring, for example, IT, accounting, PR, or advertising specialists, if their work is not related to the core business of the company but is a less key area of its operation. It is more cost-effective to hire a professional external company, which will provide a high level of service on more favorable financial terms, than if the company hires specialists on its own on a permanent basis. The enterprise will not have to carry out the recruitment process, provide a place to work, or appropriate equipment.
2) Printing and operation of office equipment
A solution to reduce the cost of printing and operating office equipment is, for example, the use of one printer by employees in different departments instead of providing a separate desktop device in each department. This will allow better control and management of printing costs. Another example would be to move documentation to the so-called cloud. Then, instead of printing reports and other documents, employees share them with interested parties. The company can control the sharing, doesn’t use up toner and paper, and doesn’t have to worry about destroying unnecessary documents.
Running a manufacturing enterprise naturally involves the production of waste. However, they do not have to be a problem. A favorable solution in this regard, for example, is to establish cooperation with a company that deals with the purchase of waste, thus avoiding the need to pay for disposal, and what’s more, earn money on the transaction. In addition, such a solution is also environmentally friendly.
4) New equipment
New equipment is not always necessary, sometimes it is worth betting on used equipment, of course, in good condition. There are many offers for the sale of post-lease equipment, which does not differ much from the condition of new, in turn, its price is much lower than the price of new. This includes computers, monitors, furniture, expensive production machinery and many others. All you have to do is search the web and find an interesting offer.
5) Process optimization
It is worth considering ways to improve process efficiency and eliminate delays. This is tantamount to reducing production time and increasing product quality. Process optimization should start with a thorough analysis of each process. Then, for example, you can introduce process standardization, focus on eliminating waste in all production processes and beyond, and reduce frozen capital, i.e. inventory.
6) Purchasing strategy
Planning an optimal purchasing strategy means comparative analysis of available offers and constant monitoring of the market situation. For example, it may be a good idea to limit external warehouses or use suppliers that offer high quality at a good price to avoid unplanned losses due to delays or the purchase of low-quality products.
These are just some examples of effective methods of reducing costs in a company. There are many more lean tools and techniques that can help reduce the cost of doing business. However, it’s worth starting with yourself and looking at your own expenses and thinking about ways to reduce costs in your daily life.
2. Reducing the cost of everyday life
1) Reduce energy consumption
Reducing the consumption of electricity, heat as well as water does not have to affect the comfort of the household. It is enough to remember to turn off lights or appliances that are not used at the moment, or to use a dishwasher that consumes less water. In this regard, it is worth reading both the advice of specialists and the solutions used by other users in the context of energy saving.
2) Reduce spending on food
Planning a shopping list and avoiding spontaneous choices, which often turn out to be unnecessary, can be a good solution in this regard. In this way, we will not waste food and will reduce costs. It is also worth considering giving up certain activities, for example, instead of eating out, you may decide to prepare all your meals at home. This requires spending more time, but you can eat not only much cheaper, but also healthier.
3) Planning for major expenses
It is also worth planning for larger purchases. Then it will be much easier to accumulate the necessary funds in the form of savings, which can then be used for larger expenses. This will allow you to reduce borrowing, loans that generate constant additional costs that limit the amount of money available within the household budget.
4) Means of transport
Choosing a bicycle or public transportation instead of a private car can also help you save significantly and is also an innovative idea in terms of ecology. On the other hand, if you own more than one car, you should consider whether it would be more beneficial to sell one of them.
In conclusion, first, you should analyze your fixed costs, think about what you need, and what you can give up, such as an office, phone lease or car. Let’s also remember to save wisely, because cheap doesn’t always mean economical. Let’s be Lean! As a company, we can help you reduce expenses and find savings by conducting a lean audit. Feel free to contact us!