How can companies reduce costs to maintain operations in a global economic downturn? Featured

Thursday, 14 September 2023 07:49

In the external environment of the global economic downturn in recent years, many small and medium-sized companies are facing a survival crisis. It is a challenge for most companies to try to reduce costs while not affecting their normal operations.


After in-depth analysis and research, Dongjin suggests that small and medium-sized companies in service trade can take the following solutions:


  1. Online office: It is recommended that companies use online office and management systems as much as possible to reduce office costs and improve communication efficiency. Public platforms such as Enterprise WeChat can also be used to achieve the above office methods. If possible, employees should try to work from home, travel less, and reduce commuting costs.


  1. Outsourcing services: For employees in the company's core business, they can be retained on a selective basis, but for business support personnel, they can be decisively dismissed. Relevant work should be entrusted to a third party to provide professional outsourcing services, such as finance, legal affairs, personnel, administration, etc. Outsourcing services can significantly reduce the company's social security payment costs, reduce recruitment and dismissal costs, and reduce the implicit costs of employees' various vacations, maternity, work-related injuries, etc.


  1. Reduce rental costs: It is recommended that companies abandon renting their existing fixed offices and significantly reduce rental costs through shared office and other modes. Business personnel should try to provide services to customers through online or on-site services.


  1. Reduce financial and tax costs: In order to restore the economy, the Chinese government has introduced various tax and fee reduction and subsidy policies from the central to local governments and various departments. It is recommended that companies conduct a comprehensive understanding and not miss any relevant preferential policies to reduce financial and tax costs.


Dongjin has accumulated over 20 years of rich experience and many successful cases in helping small and medium-sized companies in service trade to reduce costs and maintain operations. It can provide personalized optimization plans based on the actual situation of various companies and implement them.


If the company has any questions, please feel free to contact Dongjin at any time.


Mike Chang


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Mr. Mike Chang



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