COVID19 - Increase Revenue or Decrease Expenses
a penny saved is penny earned
COVID19 had united all industrialist to ponder on how to add value not cost to their bottom line. Concern over economy crisis due to COVID19 is at core of countless conversation in the world today. There is a widespread anxiety from London to Los Angeles to Tokyo to Beijing to Mumbai.
These days while having dialogue with my client, there seems a heightened sense of disquiet among Small & Medium sized Enterprises (SMEs) to Large cap organization, alike due to COVID19 outbreak.
We know that none of us can guarantee that in this global economy we are immune from fluctuation in our respective market segment due to COVID19 outbreak.
One can't throw up his hand in despir with cries of:
"But what can we do, let government shall take responsibility"
Two day back, I called to my childhood friend, who stay at Jamshedpur, to discuss with him how things are moving amid of COVID19.
He responds to me in very frustrated voice, his company is asking him to advise on how to cut the cost. Due to COVID19, Lockdown is announced by Government of India & asked employer to make sure not to terminate, reduce wages or Layoff. This situation is adding burden to company to bear the cost of Salary when there is downfall in business growth.
This conversation reminds me proverb 'a penny saved is a penny earned'.
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| a penny saved is penny earned |
Now, COVID19 crises had forced management to rethink over their bottom line & to boost bottom line there is only Two Way:-
- Increase Revenue &
- Decrease Expenses
With decrease in expenses, it doesn't mean to slash & burn of workforce, but involving them too in offering a potential solution.
My friend suggest to eliminate at least one time tea or add water in hand liquid soap. Yes, it sounds funny, but I believe, it has strong outcome.
By eliminating one time tea -
A tea may cost Rupees 10, if company size is of 50 employee, then by year end they are able to save it Rs. 1,40,000.00 ( assuming 280 working day per year)
Sometimes there is little we can do to increase revenue so there is a need to reform on needless expenses.
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