6 Strategic Ways to Save Money (Before Considering Layoffs)

Shaoping Cao is a purchasing manager with experience in strategic plan and sourcing.

  Organizational Project Management   Strategy  

The pandemic has hammered the world economy hard, challenging business liquidity and solvency on a tremendous scale. Adding to the gloom, despaired entrepreneurs have had to make tough decisions and reluctantly let go of experienced and talented employees—valuable assets that they have spent years developing.

However, there are other areas you can squeeze further—or at least explore the possibilities—before landing on the dismissal option. The following methods have proven to be practical cost-saving possibilities—and might inspire you. Adopt what fits your business the best and, hopefully, cope with the difficulties together with your teams.

1. Prioritize what you really need by leveraging the MoSCoW analysis. MoSCoW stands for “Must have, Should have, Could have, Won't have.” These four dimensions engage in introspection on things that…

• you cannot live without
• are important but not vital
• are nice to have
• provide little to no value

In other terms, what the company “must spend” is essential to keep the business airborne, and what the company “should spend” is crucial to keep it advancing. On the other hand, what the company “could spend” and “should not spend” offers room for optimization. The MoSCoW approach enables a clearer prioritization on your current …

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