Business

7 Popular Cost Reduction Strategies for Business — Ranked

It’s time to jump into the most popular cost reduction methods so your business thrives. Still on the fence? Then check out these examples

Published

3 years ago

January 23, 2021

Erica Jones

7 Popular Cost Reduction Strategies for Business — Ranked

One-third of small businesses survive 10 years which shows you must strike the perfect balance between profiting and budgeting.

Businesses should also track their costs so they know which areas to scale back on. Perhaps you’ve heard the term “cost reduction strategy” but you’re not sure what it does and if it’s relevant to your business.

Sounds like you? Luckily, you’ve come to the right place. Here are seven ways to reduce costs today.

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What Is a Cost Reduction Strategy?

Cost reduction strategies in companies is the process of cutting costs. The aim is to slash costs while boosting productivity, accelerating processes, and maximizing resources.

Note that cost reduction strategies are crucial for new businesses because they likely don’t have the revenue to balance out the cost of running their company.

The 7 Best Cost Reduction Strategies

It’s time to jump into the most popular cost reduction methods so your business thrives. Still on the fence? Then check out these examples:

1. Outsource Business Tasks

One of the top operational cost reduction strategies is to outsource wherever possible. If you’re a small business then you won’t need a full-time web developer, copywriter, and graphic designer. You should either offer part-time roles or outsource special tasks so you don’t have a huge payroll to fund.

Once you note these reasons to consider outsourcing, know there may be a high upfront cost but it’s far more affordable than funding a full-time salary.

2. Reduce Utility Bills

Looking for overhead cost reduction strategies? Then consider your utility bills and make adjustments where necessary.

Also Read: Learn how to beat your competitors with better Customer Experience

Start by monitoring how much electricity your office uses and make sure you unplug unused appliances, turn off lights when needed, and allow natural light to pour into rooms. You should also switch to energy-efficient light bulbs, check your HVAC system so there are no leaks, and upgrade to a programmable thermostat.

This will follow a schedule by increasing the heat or AC in the morning and shutting down outside of business hours so you save a fortune. Further, business owners should consider the location of their office. It’s wise to choose a less in-demand area and possibly downsize if you don’t need the extra space.

If you’re eager to cut back then consider renting a coworking space so you can funnel rent money into more important areas like marketing.

3. Use Technology Solutions

Although the initial cost seems overwhelming, you save more money in the long run when you invest in technology solutions. Cloud computing, for example, is a cost-effective storage solution because you needn’t buy expensive servers and you get access to better bandwidth.

You should also hold meetings virtually so you save on company time and gas money. And instead of splurging on multiple software, use free ones like Trello or Google docs to organize and centralize your team’s workflow. These collaborative tools let your employees collaborate effectively so they don’t waste time sorting out paper documents or printing out spreadsheets.

4. Negotiate With Vendors

Many business owners forget that they can negotiate many overhead costs. For instance, ask your landlord if they’d accept a reduced rate if you pay a fraction upfront or agree to a prolonged lease.

You should also contact your supplier and negotiate a mutually beneficial price without compromising the quality of the goods. To do this, you must convince them that your business is a profitable venture so they can profit off it too. If they don’t budge, then shop around to find a better price whether it’s for office supplies or shipping services.

Also Read: How to Promote Diversity in the Workplace?

5. Prioritize Time Management

As they say, “time is money” so consider how well you and your team are using office hours.

Although stopping by a co-worker’s desk or going for multiple cups of coffee seems harmless, these lost minutes add up so find ways to prevent this. For example, reduce overwhelming tasks into chunks or encourage workers to take smaller, more frequent breaks so they stay motivated.

You should also minimize distractions by encouraging employees to use apps like Focus Booster so they tackle important tasks first. Further, set expectations for how long projects should take and offer incentives if it’s finished within a timely fashion.

6. Use Modern Marketing Methods

Businesses needn’t spend a fortune on their marketing strategy and instead, maximize the tools they currently have. Instead of paid advertising, boost your presence online, network at events, and ask customers to leave glowing reviews to further your reach.

And don’t forget how powerful word of mouth is. Set up referral programs, promo codes, and coupons so your business reaches new eyes with minimal cost and effort.

7. Consider Your Business Bank Accounts

Without knowing it, you may be losing money because of credit card fees or high-interest rates. Consider your current bank account and make sure it’s targeted at small business owners, has plenty of cashback rewards, and low-interest rates.

Don’t want to change banks? Then ask your current one what they can offer you because you may discover perks you weren’t initially aware of.

These Are the Top Cost Reduction Strategy Options

Hopefully, after reading this article, you now know what your cost reduction strategy is.

Also Read: How Can a Business Reduce Costs By Applying Automation?

Start by pinpointing areas that are costing you and adapt. Make sure you outsource projects when necessary, cut utility bills, and get creative with your marketing strategy. You should also check whether your bank offers any perks and negotiate with vendors to strike the best deal. Good luck!

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Hims & Hers CEO Andrew Dudum Says Wants to Hire Student Protesters Backlash Underway

Published

3 hours ago

May 6, 2024

Manoj Nair

Hims & Hers CEO Andrew Dudum Says Wants Hire Student Protesters Backlash Underway

Andrew Dudum, CEO and founder of Telemedicine Company Hims & Hers is facing flak on the social media after his reported statement that he wants to hire students and protestors who are taking part in the protest in support of Palestinians in Universities across the US.

A number of tech sector founders has also condemned his statements.

Dudum had posted on X,

“If you’re currently protesting against the genocide of the Palestinian people and for your university’s divestment from Israel, keep going. It’s working. There are plenty of companies and CEOs eager to hire you, regardless of university discipline.”

He also posted a link to a page showing open positions at Hims & Hers.

X users have expressed their disapproval and have even called for a boycott Hims & Hers, and others said they are selling their stock in the company.

Cofounder of Palantir Technologies as well as the managing partner of early stage venture capital firm 8VC Joe Lonsdale responded on X and said

“Real moral courage doesn’t involve joining a mindless mob, chanting anti U.S. and other woke pablum, following instructions not to debate or discuss your positions at all yet being indignantly righteous, while large numbers in the mob chant for violence and block Jewish students.”

While Hims & Hers spokesperson said Dudum were not available for comments, old posts by Dudum have been unearthed which puts in context his actions. Days before the horrific attack by Hamas’ terrorist against Israel on October 7, Dudum had posted –

“In pursuit for peace: Our leaders need to embrace nuance.”

Dudum further explained that he is a Palestinian American and had roots in and family in the West Bank and Gaza and said Hims & Hers’ values are based on a respect for human dignity and life.

Dudum wrote

“It is upon those values that I believe all leaders and CEOs should use their platform today to call for an immediate cease fire. To actively recognize Israel’s right to defense and also recognize the means and manner in which they are responding violates international law. I ask us to find nuance, and share our voice today to help save innocent lives.”

Deadly protests have hit U.S. college campuses through last month and protest encampments have sprung across more than 40 colleges nationwide.

Police crackdown is on and there have been more than 1,900 arrests or detainments following a wave of activism at universities across the country.

Hims & Hers is a Telemedicine Company that links consumers with licensed healthcare professionals, enabling access to high-quality care for conditions related to sexual health, mental health, and more. It also offers its own range of products and is in a partnership with Los Angeles-based Hustle & Co. on media relations.

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World

More Trouble For Microsoft, OpenAI: Eight US Newspaper Publishers File Lawsuit For Copyright Infringement

Published

2 days ago

May 4, 2024

Manoj Nair

More Trouble For Microsoft, OpenAI: Eight US Newspaper Publishers File Lawsuit For Copyright Infringement

Trouble for Microsoft and OpenAI over copyright infringement is not coming to an end, as they face several lawsuits for violating copyrights.

On Tuesday, eight US newspaper publishers sued Microsoft for illegally reusing articles in AI products.

The 98-page long lawsuit further accused the tech companies of attributing erroneous information to the publishers.

The eight newspapers that have filed the lawsuits include the New York Daily News and the Chicago Tribune.

They allege that OpenAI’s ChatGPT used their copyrighted articles to perfect its language models without permission.

The lawsuit was filed in a New York federal court on Tuesday. The publishers claim that OpenAI’s large language models, GPT-2 and GPT-3, were perfected using datasets containing text from their newspapers.

The language models are designed to produce text based on human inputs and reproduce copies of the publishers’ works. Microsoft has been indicted for using newspapers for its Bing search index but seldom provided links to the original articles. Four months ago, The New York Times also filed a lawsuit against OpenAI, accusing the tech giant of using data from its past content. It also asked for consent for usage, criticizing the use of full article excerpts in chatbot responses.

The latest lawsuit filed by the eight news outlets also demanded consent and fair value for using their content to perfect the AI language models. The lawsuit alleged that the AI tools literally regurgitate their content without directing users to the content source.

The lawsuit filings stated, “This lawsuit arises from defendants purloining millions of the publishers’ copyrighted articles without permission and without payment to fuel the commercialization of their generative artificial intelligence products, including ChatGPT and (Microsoft’s) Copilot.”

The eight newspapers that instituted the lawsuits are as follows:

The New York Daily News and The Chicago Tribune, both owned by Alden Global Capital
The Orlando Sentinel
The Sun Sentinel
The San Jose Mercury News
The Denver Post
The Orange County Register
The St. Paul Pioneer Press

OpenAI’s Response

OpenAI did not directly respond to the accusations but stated that it takes great care to support the news and media outlets. It also stated it is in continuous partnerships and conversations with various news outlets around the world to explore new opportunities, discuss problems, and seek out solutions.

Microsoft also stated that OpenAI has entered into fruitful partnerships with a number of publishers, which includes The Financial Times, The Associated Press, Spanish conglomerate Prisa Media, and Germany’s Axel Springer.

Net Worth

Alan Patricof Net Worth 2024: How Much is the American Investor Worth?

Published

3 days ago

May 3, 2024

Vishnu Chaudhary

Alan Patricof Net Worth 2024: How Much is the American Investor Worth?

Who is Alan Patricof?

Alan Patricof is a prominent figure in the American investment landscape, renowned for his contributions to venture capital. With a career spanning over four decades, Patricof has been instrumental in shaping the growth of numerous global companies, including America Online, Apple Computer, and Audible. His legacy extends beyond business, with involvement in community organizations and government initiatives.

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Alan Patricof Career

Alan Patricof’s career in venture capital began in the industry’s early days. He founded Patricof & Co. Ventures Inc., a precursor to Apax Partners, one of the world’s leading private equity firms. Later, he established Greycroft Partners, focusing on early and expansion-stage investments in digital media. Throughout his career, Patricof’s vision and leadership have played a pivotal role in advancing the venture capital field.

Alan Patricof’s Net Worth

As of May 3, 2024, Alan Patricof’s estimated net worth stands at over $1 million. His wealth is derived from various investments, including holdings in Boston Properties Inc. and successful ventures in digital media. Despite humble beginnings, Patricof’s entrepreneurial spirit and strategic acumen have propelled him to financial success.

Alan Patricof Age

Born in 1934, Alan Patricof is currently in his late eighties. Despite his advanced age, he remains active in the business world, leveraging his wealth of experience to mentor emerging entrepreneurs and drive innovation.

Alan Patricof Family: Wife and Children

Alan Patricof has been married to his wife Susan for over 48 years. Together, they have three children and seven grandchildren. Family holds great importance to Patricof, and he credits his upbringing and heritage for shaping his values and work ethic.

Alan Patricof Height and Weight

While specific details about Alan Patricof’s height and weight are not readily available, his stature in the investment community is undeniable. Patricof’s impact transcends physical measurements, as he continues to leave a lasting legacy in venture capital and philanthropy.

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