High speed internet improves productivity
Sunday, February 22nd, 2009During the toughest times in the business cycle – a cycle that has been amplified by the effects of the real estate crash in southern California – owners of businesses of all sizes ought to be doing whatever it takes to trim down on the cost of their products, the costs of administering their business, and the costs of holding inventory. Only after a campaign of prudent cost-cutting can businesses afford to begin strategizing for the future.
To cut down on the cost of products, businesses can reduce workforce or find cheaper components for whatever it is they’re manufacturing if they aren’t in the service business. For Hollywood movie producers, this has implications, just as it does for Downtown apparel manufacturers: to reduce the cost of a final product, a producer chooses less expensive actors just as an apparel manufacturer will try to find less expensive fabric and less expensive ways to stitch it together (fewer employees on the production line?) By improving cross margins, pressure on operating margins is greatly reduced and the business is repositioned to really thrive in climates conducive to high operating profitability.
One of the best ways that businesses in and around LA can reduce their administrative expenses is by getting telecommunication expenses under control. This means shopping around for a Los Angeles broadband provider that will be able to integrate VOIP solutions into your package, which can save businesses up to a thousand dollars a year per employee on phone service over a hosted PBX or other phone company solution, depending on how many phone calls you make. Choosing a locally-based provider all makes a fair bit of sense from a service aspect; dealing locally means that there will be someone who is accountable for your service and present to endure your wrath should anything go awry – a great incentive to get things working again quickly. Other ways of dealing locally that can save on administrative expenses are seeking out the best prices on electricity and office supplies like paper as well from smaller, local vendors who are able to supply discounts in return for a large purchase from you.
Lastly, reducing the cost of inventory – the interest or opportunity cost of capital tied up in inventory – is crucial to success. Whether your business is a lawfirm and your inventory is ‘billable hours’ or your business makes shoes, reducing the quantity of inventory you’re holding and not discounting accounts receivable is a smart way to keep cash flow positive.
Of all the methods to save money for small businesses, finding a Los Angeles broadband service to save your money on your phone and internet bills is by far the easiest. Any smart business owner has a fiduciary responsibility to make a change to a more affordable provider.