13 Cost-Cutting Strategies to Stay Afloat in Tough Economic Times
In times of economic uncertainty, it is critical to implement a comprehensive strategy to reduce operating expenses and increase cash flow. Winning companies recognize that their company’s future is primarily determined by their actions today, and, let’s face it, staying afloat during these trying times can be a full-time job in and of itself. Learn the best info about Abogados Barcelona.
So while some significant changes may be required, don’t overlook the impact of seemingly insignificant changes. These simple, easy-to-implement cost-cutting strategies provide law firms (or virtually any type of business) with just a few ideas on how to cut costs.
– Run a “Historical Expense Data Report” to see where your money is spent. By keeping track of all your expenses (no matter how minor they appear), you can clearly understand where your company’s money is being spent. In addition, calculated cost-cutting measures are far easier to implement once they are visible in black and white.
– Examine Utility Expenditures. There are numerous ways to cut utility bills (and boost your company’s “green” reputation) through energy conservation. Upgrades to more efficient light bulbs, programmable thermostats, motion light sensors, and a company directive to turn off computers at night can significantly impact bottom-line savings. For example, it is estimated that each year in the United States alone, $2.8 billion is wasted on excess energy costs due to computers sitting idle overnight. To put it into perspective, a company with 1,000 PCs left on overnight could save $28,000 per year if turned off after hours – that’s not chump change.
– Lower the price of office supplies. Examine previous invoices and highlight the office supplies that account for 80% of the total dollars spent. Focus only on stores that are must-haves. Request bids from two or three vendors and compare prices. Work with suppliers to plan timely shipments and restocks to avoid having excess supplies on hand. Simple measures like double-sided copying and reusing file folders can add up over time.
– Think about working virtually. The firm can significantly improve job satisfaction while lowering associated occupancy costs by fostering a culture that allows for greater flexibility in where lawyers and staff work.
– Rethink the Secretary’s Role. With secretarial and administrative support being the most bloated within a typical law firm’s support function, it’s no surprise that many are reconsidering this crucial role. Law firms can reduce spatial requirements and improve service to lawyers by incorporating secretarial teams, outsourcing documents, and upgrading the secretary’s position.
– Determine if outsourcing is a good fit for you. As law firms seek ways to reduce costs while maintaining service quality and reliability, some are considering outsourcing to India. As a result, business is booming in the Indian legal services industry, which is still in its early stages.
– Use e-mail to communicate. Determine the necessity of phone communication and opt for e-mailing, especially when long-distance charges are involved. Ensure your company’s e-mail address appears on all business cards, stationary, and invoices.
– Save money on parcels and overnight shipping. A little prudence in this area can save you a lot of money. Consider how frequently packages are sent overnight vs. 2nd Day delivery and whether they are eligible for ground shipping, which is a fraction of the cost. If you use multiple shipping vendors, you may be missing out on volume discounts. A few policy controls in this area could save much money in the long run.
– Reduce printing costs. If your company spends money on printing, it pays to shop for the best deal. Examine local, online, and mail-order printers for a reasonable price that fits your budget.
– Employ a Virtual Paralegal. Computers, e-mail, fax machines, voice mail, and other technology-driven devices are standard in today’s law office setting, making it possible for legal professionals to conduct paralegal work virtually from home or elsewhere. Hiring a virtual paralegal (a paralegal independently contracted by a lawyer or law firm to provide paralegal support services as needed) may be the ideal solution, particularly for smaller law firms.
– Make people inquire. Reports and office supplies are frequently distributed automatically, even when not used. It’s a good idea to check regularly by turning off the power.
– Reduce Subscription Fees. How many Wall Street Journal subscriptions does your company require? Examine all your company’s current subscriptions to see if receiving two or three of the same publication is necessary or if some subscriptions can be dropped entirely.
– Purchase a paperless platform. Consider how much money your company spends on storage, both on and offsite. The investment to transition to a paperless office may appear to be an unnecessary expense, but it will quickly pay off and increase office efficiency.