Unnecessary Costs in the Business World
- Sunny Leand -
- 16.11.2018
One of the things that you want to minimize no matter what aspect of the business world you’re involved in is the concept of unnecessary costs. And unnecessary costs come from several different directions. You may have to spend some time and energy figuring out precisely what the core reason for these expenses are, but once you do, you should be able to chip away at them and improve your bottom line effectively.
So what are a few examples of these things that you can start eliminating to improve your overall business picture? You can get rid of poor ergonomics. You can reduce any sort of extra inventory you have that’s taking up space. You can get rid of all of your misplaced advertising that costs money and doesn’t do anything productive. And you can get rid of the idea that you should work just for the sake of work. Collectively, all these ideas will help you save money.
Poor Ergonomics
It is absolutely amazing what the cost of poor ergonomics is to your business. If an employee is sitting in an uncomfortable chair or using a cramped keyboard or mouse, that automatically results in lost productivity. Spend the money on good chairs and ergonomic equipment, and you will immediately see better results overall in your workplace. Don’t try to cut corners when it comes to this sense of physical efficiency, and it will pay off dividends in happiness and health of workers.
Extra Inventory
How is your inventory management? Do you have too much of a thing or too few of the items that you sell the most of? It may take some practice to get these inventory numbers right, but one of the most significant unnecessary costs in the business world is radically missing your ideal number when it comes to stock. Once you start recognizing trends and purchasing patterns, tweak your system of production so that you get the biggest benefit and require the least overhead for wasted time and space.
Misplaced Advertising
If you aren’t involved in permission marketing in one way or another, that means that your advertising dollars are going to a black hole of misuse. If you spend $1000 and reach exactly 0 people, that is $1000 that you have wasted. Poor advertising and promotions can cost many thousands of dollars, so it’s better to be smart about who you’re putting your branding message in front of rather than just throwing anything out there to anyone.
Working for the Sake of Work
In some companies, you always have to look busy. This makes sense if there are clients around who want to get the most for their money, but if it’s just workers looking busy to keep bosses happy, that’s another story. As a manager, be smart about motivating your workers, and then there won’t be any unnecessary psychological or financial cost of just having them take up space instead of doing valuable work.