With economic uncertainty still plaguing our nation’s economic climate, it has become a season for big cuts. Nowadays, with costs on the rise and the economy dragging, businesses should look at three things to cut costs: staffing, rent and capital equipment rather than on cutting staff numbers, though is the most obvious way.

Though cutting the head count is obvious and easy, it is also a morale buster. Though it can meet a short-term imperative cost, it often has long-term repercussions and the cost of rehiring when the economy has turned is expensive.

Rather than losing that staff member, here some ways to cut costs and improve cash flow:

  • Reposition full-time staff on part-time. By getting people to cut their working time by only one or two days a week, you can generate big savings. It will also ensure that brain power remains in the organization as well as helps maintain employee morale.
  • Only pay your bills when they are due. In this way, you free up your cash and when you have emergencies than you can use these to pay. But take note, remember to replenish these as you need to pay your dues as unpaid bills will accumulate and entail cash penalties.
  • Check the rosters to see if staff is being used effectively. Assess for roster profitability. This means that you have the right staff on at the right hours, eliminating wasting valuable resources at quiet times of the day.
  • Check your roster at the cost per sale from a labor cost perspective. In this way, it will help you determine the trend of your best and losing days and when to provide the right number of staff so as not to lose sales.
  • Engage the services of a payroll software provider which are affordable. Utilizing this will also free up your time to focus on other aspects of your business.