Focus on what you can do. Not what you can’t. Small steps turn into miles. – Zig Ziglar
A main target for cost savings is usually the biggest bills. At Silverback, we generally use that as a starting point when working with new clients. However, you shouldn’t dismiss smaller bills. Those “small steps” can turn into “miles” of savings.
Some services that come to mind:
If you are running your business with anything less than normal level of foot traffic, you may want to consider reducing your janitorial service. Whether you have more employees working from home or fewer customers coming in, is it reasonable (and meet sanitation standards of your field) to reduce the janitorial service?
If you have area you prefer to be cleaned more frequently, provide surface cleaners, dusters, etc. This can even be a duty to fill your staff’s time to maintain full-time hours.
Coffee, food, etc Services:
It may be hard to remember, but just 4 months ago, we were in an economy where we were looking at our businesses at how to make them more appealing to retain and gather talent. One appeal was in office perks such as coffee and snacks. If your business has fewer staff working in the office and you had service that provided these amenities, you may want to talk to your provider about a reduction or suspension of services. Otherwise this is just waste; whether it is just piling up or being thrown away.
Laundry, Linen Service:
Again, this is another service dependent on a reduction of foot traffic and use. Whether the reduction is by choice or by consumer behavior, if you are using fewer linens or laundered items, you should not use nor require the same level of laundry service. If you had laundry picked up once a day, consider once a week. It is all about meeting the demand.
Services on “Auto Replenish”
Some of us had a normal reoccurring demand for a service that auto replenish was care-free and helpful. But now, if your business has had any reduction, your rate of need has been reduced as well. If, for example, your business knows exactly how many drill bits are needed for ever 100 items, you may confidently reduce your quantity, but maintain your auto-replenish. However, should you want a bit more wiggle room, you may want to opt for an as-needed ordering process. It is more consideration on a daily or weekly basis, but it should save you money.
This even goes for preventative maintenance. If you are not using a vehicle or machine as often, you do not always need to continue the same rate of maintenance.
One other thing to consider is we are all in this together. In a business sense, your vendors do not want to see you go out of business or be unable to pay them at all. For services that appear less flexible because of contract or things of that nature, you may want to reach out and discuss options. Consider even your lease, while your landlord may have the ability to “kick you out” should you be unable to pay, in this economy, it does not make much business sense to leave a vacated space that cannot be filled. I do not mean this as a position to take advantage of each other, but know that we succeed together and are all facing similar struggles. Honest discussions can help you reduce your expenses, while maintaining your business and relationship with vendors.
The bottom line is do not undermine small “steps” and costs. Each one can help you reduce the cost of running your business and those mount up to “miles” of savings. If you are interested in additional savings, please reach out to us at Silverback. We can help you find even more savings together.