Labor is usually the biggest expense for businesses, sometimes making up as much as 70%, according to Paycor. Businesses can save on labor costs through hiring practices, wages, benefits, using freelancers, and adjusting work locations. Besides labor, companies can also save money by reassessing supplier and vendor contracts, utilizing automation and other technologies, and examining product and service expenses.
Growing and making a profit in 2023 might be tough for many businesses. Therefore, it’s sensible to identify areas where costs can be cut without affecting sales and customer service.
In the Labor section, some of the strategies include improving productivity, utilizing technology for collaboration, and considering hiring freelancers for specific projects.
In terms of Suppliers and Vendors, the article advises to regularly review all agreements and evaluate the value these partners provide. It also highlights the importance of maintaining marketing efforts during tough economic times and focusing marketing efforts on building customer loyalty and engaging with communities.
In conclusion, in tough economic times, every business needs to monitor expenses and find ways to cut costs. Decision-making should focus on labor, suppliers, technology, and marketing investments. Review your business plan to ensure you have enough working capital and access to funding to seize opportunities, even during a recession.
