This is part of a series of posts I wrote in October 2008 concerning the arrival of the Global Recession...
Root Step 8- Adopt ONLY necessary Cost Cutting measures:
Having decided on the business model and chosen appropriate distribution channels, the next step would be to list down the day to day necessary activities or purchases and their expenses, and then cross out the less necessary keeping the most necessary activities back on the paper. In other words, eliminate the entire extra and un necessary activities happening in the office which was costing you all this time.
If you have 3 telephones in the reception, remove the one which is being the least used so you don’t need to pay the extra monthly rentals. Replace the high voltage bulbs with latest energy saving bulbs. You not only reduce your bills but your contribution to Global Warming will be even lesser. Issue strict orders to the staff not to keep the lights or systems switched on when no one is in the room. Provide only limited stationery items and charge them a nominal amount if they go over the limit. This will bring a discipline and also act as a reminder to everyone that there are only limited funds for stationery as well and so they must use it rationally.
Company sponsored parties can be limited to once in 6 months rather than on a monthly basis. These steps may sound silly but if you can explain the seriousness to your staff as explained earlier, then they will wholeheartedly accept these new decisions and see to it that the company runs strong even during the stormy times.
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