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Guest Post - How to Avoid Layoffs While very few people get excited about financial efficiency, at SmartCause we know that when charities waste money, it's at the cost of helping the poor and the suffering. When for-profits waste money, we're inclined to think it's not much of a problem. But some changes in efficiency could mean not having to lay people off. With that in mind, I asked my friend Phil from Expense Reduction Analysts (a consultancy firm that helps business eliminate wasteful overhead) to write a guest post about how companies can avoid layoffs. Reducing Waste to Save Jobs Would your company rather pay less for office supplies or lay you off? Which is more valuable — using a local next-day delivery service or saving your job? Does it make more sense to keep track of contracts for leased equipment or eliminate your position?
What if you could help your company prevent layoffs by finding the money somewhere else? At Expense Reduction Analysts, we’ve found that businesses overpay for common overhead products and services by an average of 20%. For most companies, overhead expenses amount to 15% of revenue. Do the math. For every $1 million in revenue earned, a company spends $150,000 on overhead costs. A 20% savings on $150,000 of overhead products and services translates to $30,000 a year – an excellent start to saving a job – now think what you could save if your company makes $10 million a year, or $20 million, or more. Lots of money comes from places you don’t expect. For example, if your company leases a copy machine, or other equipment, do you know what the renewal terms are? Most lease contracts auto-renew at the initial rate, and while all companies should be renegotiating before their leases expire, most aren’t. There are a lot of other places where you can find lots of money. This is the point where I’d normally make a sales pitch and tell you to contract ERA’s services, but Jon Stewart is right, the economy is more important than Jim Kramer’s ratings, and it’s more important than any one business (CNBC’s or mine). So instead of telling you to sign up for our services, I’m hosting two Webinars next week to tell you how to save your company enough money that you may be able to prevent layoffs. Come to one of them. At the very least, your company probably won’t be laying off the person who helps save them all that money. And at best, you could be the person at your company that saves everyone’s jobs. -Phil Reserve Your Spot Now Webinar #1: Tuesday, March 24 at 10am (Pacific time) or Webinar #2: Thursday, March 26 at 1pm (Pacific time)
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