Cost reduction in the company: solutions to survive crises
Posted: Tue Jan 21, 2025 4:09 am
In uncertain times, cutting costs is essential. And it’s not enough to just cut superficial expenses; you need to go deeper and save on the company’s fixed costs.
The first step, before cutting everything, is to understand where the company's cash is going. Having a deep understanding of your business's cost management will allow you to know exactly what can be cut without interfering with the service and quality of your product or service.
Analyzing this data allows you to detect delays, bottlenecks and waste, reducing some of the company's costs. After analyzing the expenses of at least the last six or 12 months, it's time to decide what can be cut. Which brings us to the next step:
Ways to reduce costs in the company
We have selected 4 areas where you can significantly reduce costs and which, often, most entrepreneurs do not think about.
Reevaluate your tax regime
Small and medium-sized companies, especially in their colombia phone number lead first years of business, believe that allocating their expenses to the Simples system represents savings at the end of the month. However, this regime is not always the most suitable for your company, which can mean losses later on and complications with the tax authorities.
Checking whether your company’s tax regime is the most appropriate for its business volume can reduce your tax expenses. And these savings can be used to invest in improvements for the company as a whole.
Negotiate with suppliers
There are two ways to reduce supplier costs. The first is to negotiate with your existing supplier to secure lower prices or better payment options. This way, you ensure the quality of the product or service and also improve your profit margin, potentially saving up to 30%.
Another way to reduce costs is to diversify your suppliers. This way, you run the risk of running out of products in your inventory or suffering from high prices. But make sure that the new suppliers will guarantee the quality of the previous ones.
Reduction of superficial costs
We said that you shouldn't focus on superficial costs, but that doesn't mean you should ignore them! There are several small expenses that, when added together, eat up a large chunk of your budget.
Everyone knows how to reduce costs, right? Saving energy and water, reducing printing and paper costs, and other small expenses can help a lot at the end of the month. To ensure savings, it is important to motivate the entire team to cut costs together.
Use collaborative spaces
If your business does not rely on a physical store or a location to sell and stock your products, a great way to reduce costs is to use collaborative spaces. Coworking spaces and virtual offices offer several benefits, such as internet, correspondence, meeting rooms, and individual or collective workspace.
There is also the fiscal address service. With it, you can keep your company safe and regular, using the address of the space as the official address of your business. In addition to optimizing costs, you ensure that your company looks professional and has a pleasant space to receive clients and partners.
Here at 55 Lab, in addition to using the fiscal address, the collaborative space and all the benefits we have already mentioned, such as correspondence and work areas, you can also participate in our community for entrepreneurs and take our Tapa Na Cara course, aimed at those who want to revolutionize their business or career.
Learn more about Tapa Na Cara and the benefits of using a fiscal address on our website, and contact our team to clarify any questions about our business lab and our plans.
The first step, before cutting everything, is to understand where the company's cash is going. Having a deep understanding of your business's cost management will allow you to know exactly what can be cut without interfering with the service and quality of your product or service.
Analyzing this data allows you to detect delays, bottlenecks and waste, reducing some of the company's costs. After analyzing the expenses of at least the last six or 12 months, it's time to decide what can be cut. Which brings us to the next step:
Ways to reduce costs in the company
We have selected 4 areas where you can significantly reduce costs and which, often, most entrepreneurs do not think about.
Reevaluate your tax regime
Small and medium-sized companies, especially in their colombia phone number lead first years of business, believe that allocating their expenses to the Simples system represents savings at the end of the month. However, this regime is not always the most suitable for your company, which can mean losses later on and complications with the tax authorities.
Checking whether your company’s tax regime is the most appropriate for its business volume can reduce your tax expenses. And these savings can be used to invest in improvements for the company as a whole.
Negotiate with suppliers
There are two ways to reduce supplier costs. The first is to negotiate with your existing supplier to secure lower prices or better payment options. This way, you ensure the quality of the product or service and also improve your profit margin, potentially saving up to 30%.
Another way to reduce costs is to diversify your suppliers. This way, you run the risk of running out of products in your inventory or suffering from high prices. But make sure that the new suppliers will guarantee the quality of the previous ones.
Reduction of superficial costs
We said that you shouldn't focus on superficial costs, but that doesn't mean you should ignore them! There are several small expenses that, when added together, eat up a large chunk of your budget.
Everyone knows how to reduce costs, right? Saving energy and water, reducing printing and paper costs, and other small expenses can help a lot at the end of the month. To ensure savings, it is important to motivate the entire team to cut costs together.
Use collaborative spaces
If your business does not rely on a physical store or a location to sell and stock your products, a great way to reduce costs is to use collaborative spaces. Coworking spaces and virtual offices offer several benefits, such as internet, correspondence, meeting rooms, and individual or collective workspace.
There is also the fiscal address service. With it, you can keep your company safe and regular, using the address of the space as the official address of your business. In addition to optimizing costs, you ensure that your company looks professional and has a pleasant space to receive clients and partners.
Here at 55 Lab, in addition to using the fiscal address, the collaborative space and all the benefits we have already mentioned, such as correspondence and work areas, you can also participate in our community for entrepreneurs and take our Tapa Na Cara course, aimed at those who want to revolutionize their business or career.
Learn more about Tapa Na Cara and the benefits of using a fiscal address on our website, and contact our team to clarify any questions about our business lab and our plans.