Stan Gordon offers his wisdom to Business First magazine this month, on reducing operational costs but minimising any possible damage doing so might cause to a business.
Stan gives a little insight in response to their Q&A question:
“What causes the reduction of operational costs and how should a manager minimise the damage?”
His advice: reductions in operational costs can only be made with adequate planning!
Stan suggests that at the end of the day, there’s little point in squandering on costs if they’re going to impact your business in a negative sense. Why compromise on your internet service provider if you are unable to complete your day to day business transactions adequately?
It’s crucial for any business to weigh up the options. For example a business like Cold Rock can reduce operational costs by outsourcing certain tasks such as ice cream production to trusted affiliates. Why? “Because everyone know what they’re getting, and in effect, damage to the business is reduced, costs are saved and you have happy customers. Win, win, win!”
