Cutting costs is always high on the list of priorities at any business. Big businesses obviously need to keep tight control on their overheads because it is often the fine details that determine their success. Smaller businesses have to be very careful about where they spend their money because mistakes and oversights can prevent them from seeing the growth they hope to see.
So what sort of strategies can businesses employ in order to cut costs? One of the areas in which businesses are increasingly looking to cut back is business travel. Reducing business travel costs is likely to become an even greater priority in light of the recent reports that suggest rail fares have increased 4.2 per cent in a year.
This is a major cost for businesses and although business travel is often seen as a necessity, many are now changing their attitudes in this regard.
The fact is that reduced business travel can save companies huge sums of money which they can direct elsewhere. Reduced business travel also contributes to a more positive environmental agenda, something which obviously reflects well on a brand with regard to its role in the wider community.
These are things that businesses of all sizes ignore at their peril. So what can actually be done to reduce business travel with a view to reducing costs?
Well, to begin with, lots of businesses change their management systems to put operations under closer scrutiny and tighter control. All situations where business travel may be possible need to be evaluated properly to see if there is a cheaper and better way of conducting business.
Many find that technology such as better telephone systems and greater online operations help them to drive down the amount of business travel they engage in. Meetings and other forms of communication can often be conducted really efficiently, transparently and productively without actually involving face to face contact necessitating travel by road, by rail or by air.
Another way to actually reduce business travel is to engineer ways of conducting more business on a single trip. If it is possible for members of the team to carry out more business on one trip, perhaps distributing their time more effectively (meeting more clients, putting more issues on the agenda at each stop, and so on), members of the team may have fewer reasons to travel and so the frequency of trips may be reduced.
A more proactive approach to cutting costs is necessary for businesses who want to get ahead and see their finances used in the most positive manner.
This article was written by James Daniels, business graduate and telephone conferencing expert.