Rethinking the product offering

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You can also optimize direct cost management by focusing on the "core of the business." That is, what you do best and what's most profitable.

For example, the OBS Business School in Barcelona , ​​Spain, recommends implementing business and product pivots. Pivots are changes in business models, company growth models, and products.

Product pivots allow a product line to be kept up-to-date without having to invest in creating a new one, which helps reduce inventory and cost of goods sold in the process. This represents a significant cost reduction for the company.

There are different types of pivots that can be applied depending on the company's needs and capabilities. Some of them are:

Channel pivot : Changing the distribution/sales channel for a particular product or service. An example is Netflix, which stopped delivering movies on DVD and created a streaming service, thereby reducing distribution and sales costs. Examples such as Nike, which previously sold its products exclusively through retail stores and authorized distributors, are also very illustrative.

Zoom-in pivot : Transforming a product feature into a new product. Two practical examples are Instagram, which started as Burbn, and Flickr. Both began as platforms with diverse features, but found that image sharing was the most popular and became their core product.

Zoom-out : the opposite of the previous pivot, this involves moving from a very specific product to a more general one. The most obvious example is Uber. The platform began as a ride-hailing service for individuals and over time added more apps and services.

Technology pivot : This is the application of technological changes to improve products or services. This pivot is typical of large companies that can make a significant investment.

For example, PayPal started out as Confinity and offered its service as a mobile app for transferring money between Palm Pilots (something similar to a PDA). It later changed its name to PayPal and created a platform for desktop computers and mobile apps.

Platform pivot : This is typical of the new technology sector. It is based on the changes an application undergoes on a digital platform.

The most obvious examples are social networks like Facebook and Pinterest. In Facebook's case, it began as a networking platform, but now it's also a means of communication, advertising, and sales.

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Optimize team training
Properly training your team is an expense that brings great benefits. A well-trained staff won't require ongoing training, and this expense can be reduced.

Strategies to minimize costs in this area include:

Offer group training and seek discounts based on the number of participants.

Training coaches within the same company

Conduct regular talks in which all employees participate and exchange knowledge

Cross-train employees. You can train them with another coworker with different responsibilities so they can swap roles.

Initiate mentoring programs to support new workers

Adopt the e-learning model to provide flexible gambling data brazil study schedules and reduce employee travel costs.

Negotiate exchanges of products or services with clients and service providers that offer training courses

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In successful businesses, it's difficult to identify which marketing costs can be reduced because it seems that much of the success is due to that investment. But it's important to remember that there are situations in which certain cost and marketing efforts require a change in strategy.

An example is marketing before, during, and after a crisis. In unexpected and uncertain times, reinvention is key.

In times like these, you need to evaluate which media your advertising uses most. You should also assess whether you're capturing the leads who buy the most profitable products or services.