Ways of cost cutting for your business in Bangladesh
Most of the business is having so many problems for the political unrest in Bangladesh. We all want to get rid of it, but unfortunately this is not in our control! We have to depend on our ‘beloved’ (!?) politicians to solve the problem and to make us able to do our business in peace!
Not only are you, we all having the tough time, no sales but having the heavy amount of cost. As an effect, during the period, most of the businesses are now looking for the ways of cutting cost, as the income is dramatically decreased!
We at Tally Software Bangladesh can’t help you increase your cash in; however, what we can do is to help you providing some information on cutting the cost that ultimately can save your business this time.
What are the expenses for your business?
We just passed a year and entered into a new one! Most of the businesses have prepared their Profit and Loss Account and Balance Sheet last month. If you are lucky enough to prepare for your business, just have a look on the expense column of your Profit and Loss A/C. Which heads of expenses are excessive? If you are traditional Bangladeshi business owner, chances are it is Salary, Rent, and Marketing Expense and so on. If your business is having with something unique, it may be different. Whatever the excessive costs are, find it out and take steps to reduce some of them from it.
How to cut the cost?
You cannot completely do away with the above-mentioned items of expense; you can certainly get cost-smart and reduce it to a tolerable limit. Here is how you can do it!
Salaries of Employees: For the tradition and people-intensive businesses, Salaries of Employees is the highest figured ledger. However, it can be avoidable in some cases. What you have to do is to find out some leakage on your system and utilize the human resources at its level best. Here are some steps of points that you should implement.
* What’s the role of your particular employee? Do a re-assessment for all of them and try to find out if they are being utilized properly or not? Re-arrange some job role and responsibilities to make sure the tasks of your business are done within less time.
* If you are paying over-time in some cases, this is the biggest scope to cut it out Make sure the tasks are done within the office hours to minimize the over time cost.
* Do you have any task that can be done by outsourcing? Go for it. The internet has made the process very easy, work like designing; development, content writing, marketing, photography and call center can be outsourced to freelancers easily. It costs less, can save a big amount of money if the tasks are in huge volume.
Office Rent: Bangladesh is one of the expensive countries for business while it comes to office space rent. OK, here you have to take a big step and hard decision to minimize it. Look at your office; do you need the whole space by yourself now? Is it required to continue the branch offices?
* If you are small business and providing services that can be provided from home for some days, try the home office model. Don’t feel shy on going at home office, world’s largest businesses started from home office, garages and one corner room of home. However, think it seriously before leaving the current office, because in some cases, you must need a real office in a corporate area to continue getting customers and sales.
* Move to a low rental are or a small office that is smaller than the current one and costs less. If your commute charges are high, for this case, you can get the office near your home or near the employee’s home where you can save the communication/convenience cost.
* If you can split the current office into many, split it and sub-let a portion of your office to someone else. This can save you paying high office rent instantly. For promoting your office sublet, post advertisement on local classified sites like bikroy.com, olx.com.bd, cellbazaar.com and clickbd.com. You can also publish some poster near your office location describing the sub-let details.
Telephone & Internet Charges: Are your providing monthly telephone bills to your employees? Or having a high telephone bill in the office?
* If you are using a high-bandwidth Internet connection in your office, take a look. Do you need of this full speed? If not, try to downgrade the package you are using now. For some cases, you can try changing your current ISP (Internet Service Provider) to get a better offer from another.
Transportation Cost: Are you providing transportation service to your employees? Does it cost huge? If the answer is yes, you can experiment with stopping the service, or downgrade the transportation facilities. Asses if all the cars you have or hire are being utilized. If you think, it’s possible to minus some car, do it.
Investment in Capital Goods: Be more cautious here, while it comes to investment in capital goods. Some of the business in Bangladesh is investing huge in the capital goods like computer hardware, software, related hardware, fixed system development, etc. Depreciation for such goods in often high as the life period of these goods is short, and they get obsolete with new launches in the market.
However, if you are really in need of such infrastructure, go for leasing and renting model. If you have been alternative for the infrastructure, manage it. For software, believe me, most of the cases, there are always alternative free or open-source software of premium one, so go for it. You can check out the alternative free software of Tally.ERP 9 here.
It’s Your Turn
I have tried to figure out how you can cut cost of your business in Bangladesh; this is mainly for small and medium business. Some cases, this can be applied to large corporation as well. Do you have any specific suggestion to cut business cost? Share with us via leaving comment.