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Every business needs to cut costs from time to time. However, the real challenge comes when trying to cut the right costs at the right time – without affecting employee morale, productivity, and the overall business. So how do you cut costs the right way?

Here are five strategies for cutting costs in your company without causing a major backlash.

Determine the core capabilities.

Some companies start to see profit loss when they try to take on too much. Have you ever noticed some delivery pizza places that also sell wings and sandwiches often don’t do any of them well? This is because they haven’t stayed true to their core competencies and are spreading their skills too thin. In the long run, this will lose business rather than gain it. Look at how Little Caesars reinvented themselves by offering take-away pizzas – they got back on track doing what they did best.

Look at your current products.

Review the current products or services that you are offering. Is there anything that doesn’t fit your core mission? Are there outdated items that no one is purchasing anymore? It might be a good time to phase out older products to focus on the aspects of your business that are successful.

Look at your current location.

Do you have multiple locations? Could you cut costs by transitioning parts of your team to remote work? Many companies are concerned that they can’t afford telecommuting, but the opposite is often true. Brick and mortar businesses are costly. Not only do you have rent but also utilities and other maintenance costs. It may be time to downsize your company space-wise.

Utilize technology.

Telecommuting isn’t the only way you can use technology to cut your company costs. Do you have multiple platforms to help you with a variety of your day to day duties? Sometimes the one-time-only investment in a single, streamlined system that can envelop all of your company’s functions can lead to cost savings in the long term.

Evaluate your expenses.

Speaking of expenses, take some time to review your monthly expenditures with your accounting team. Are there any places that you can trim without affecting your overall business quality? It is surprising how quickly small costs add up.

Are you ready to make big changes to reduce your overall cost of business? Harvard Resource Solutions, Staffing Agencies in Detroit MI, is here to help you today!