Meet James McHenry of Widgeteer Inc

Get to know James, a new member of the EFBC, who joined us in 2022.

6 Cost Cutting Tips for Small Businesses

Employers of all sizes are currently searching for ways to reduce expenses and save money in response to the current economic downturn and ongoing labor challenges. Instead of cutting costs randomly or conducting unnecessary layoffs, successful organizations tend to optimize their resources by identifying areas where they can reduce expenses without compromising productivity or future growth. While cutting costs is essential for any organization, it’s especially important for small businesses since they tend to have fewer resources than larger employers.

This article outlines six tips to help small businesses effectively cut costs.

1.      Invest in New Technology

Adopting new technology can bolster efficiency and create savings for small businesses. Investing in technology can help reduce costs by streamlining operations and allowing small businesses to operate more efficiently. Technology enables employers to improve or even automate manual and error-prone tasks. Examples of cost-saving technology include the following:

• Customer relationship management software
• HR management or information systems
• Digital communication
• Virtual recruiting services
• Low-code solutions
• Artificial intelligence
• People analytics technology
• Learning and development software

Additionally, many small businesses are turning to open-source software alternatives as a cost-effective alternative to brand-name software applications.

2.      Strengthen Employee Retention

Prioritizing employee retention can be one of the most effective cost-cutting strategies for small businesses. Replacing workers is often extremely expensive. Employee turnover not only increases an organzation’s recruiting and training costs but also usually results in decreased productivity, lost proficiency and reduced profits.

Small businesses can strengthen employee retention with the following strategies:

• Provide opportunities for career development and advancement.
• Offer benefits to meet workers’ evolving needs.
• Improve employee engagement by encouraging employee feedback, providing flexibility and strengthening workplace efficiency.
• Bolster workplace culture through public recognition and reward programs.
• Be transparent when communicating with employees to help them understand important decisions and establish opportunities for two-way feedback.

3.      Manage Health Care Costs

It’s not a secret that employer health care costs are rising. Finding cost-effective solutions is vital for small businesses to maintain affordable benefits and reduce costs. Solutions may include reevaluating plan designs and offerings, directing employees to cost-effective services and improving employee health care literacy. Employers can leverage their relationship with their insurance brokers to explore cost-saving solutions, like obtaining details on organizational health care spending and educating employees on shopping for health care services. By adopting several cost-cutting strategies, small businesses can better manage health care costs without sacrificing employees’ needs.

4.      Embrace Outsourcing

While performing tasks in-house can often be cost-effective, there are instances when outsourcing nonessential tasks can be more economical. Manual, time-consuming tasks—such as payroll and benefits administration—may be better suited for outsourcing for some organizations. Outsourcing these kinds of tasks can enable employees to focus on more important responsibilities that have a greater and more direct impact on a small business’s bottom line and future growth.

5.      Adopt Flexible Work Arrangements

The expense of having a physical workspace can add up. Each month, employers must pay rent, utilities, cleaning costs and other expenses. While these expenses are often unavoidable, some small businesses are transitioning to home-based businesses or remote and hybrid work arrangements to cut costs. These solutions may not be suitable for all industries or job positions, but small businesses of all kinds can explore ways to offer flexible scheduling and improve benefits, like enhanced leave and paid time off, to lower overhead expenses. If converting to a home-based business or going remote isn’t possible, employers can consider downsizing their facilities to reduce their rent and utility bills. Small businesses can also explore other alternatives, such as co-working arrangements and renegotiating their leases, to reduce rent.

6.      Review Expenses

Poor cash flow can strain and even jeopardize an organization’s longevity. Reviewing expenses regularly can be an effective way to reduce and eliminate unnecessary costs. As part of the review process, employers can negotiate with providers, suppliers and vendors, such as banks and landlords, to potentially defer payments, reduce fees, improve rates and receive additional services to help during difficult times. By establishing and fostering relationships with these individuals and entities, organizations can cultivate allies and acquire strategic partners, which can pay dividends by creating cost-savings solutions and opportunities.

Summary

Effective strategies for cutting costs will likely vary for each small business. However, by planning properly and understanding effective cost-cutting approaches, small businesses can identify and reduce the costs that will have the most impact on their organizations. This can help small businesses bolster their financial stability, optimize their resources and position themselves for future growth.

For more workplace resources, contact Alera Group Mid West today.

-ALERA Group, EFBC Strategic Partner

Meet Ryan Seitz of Kolbi Pipe Marker Co.

Get to know Ryan, a new member of the EFBC, who joined us in 2022.

President’s Message – January 2023

Happy New Year, EFBC. See a special message from EFBC President, Andy Sanghani!

January is a special month for many reasons. As the beginning of the new year, we have an opportunity to hit the reset button and start with a clean slate. The gyms are packed with those focused on improving their physical health. Businesses are implementing new plans to boost performance. The excitement of NFL playoffs is upon us. Last but not least, I am fortunate to call it my birthday month :). January 29^th to be exact. That makes me an Aquarius. I don’t know what that means but my girlfriend Tina reminds me of it all the time.

I’m not sure how you all are in those days leading up to your birthday, but my mind gets filled with so many thoughts, mostly of reflection. At 42 years old, I’ve made more than my fair share of mistakes and poor choices. What has gotten me through each of those has been my family. My strongest feelings these days are those of unconditional love for my family. I’m happily in love with my partner in life (and lifetimes prior), Tina. Blessed father of two children, Ava and Ayaan. Spoiled baby brother of two sisters, Nisha and Grishma. Son of the most generous parents, Govind and Nalini.

With each of these relationships I’ve learned countless lessons. My children teach me everyday the importance of patience. Tina has taught me the growth that comes through feeling uncomfortable. My sisters have always provided mentorship – even when I didn’t care for it. Finally, my parents have shown me what it means to truly sacrifice and persevere.

As an owner of a 2^nd generation family business, it all starts with family. I’m excited to celebrate my 42^nd birthday with them and my other passion, pizza.

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	Andy Sanghani EFBC President 2022-2023

Meet Jodi Behrendt, President of Advantage Trailer

Get to know Jodi, a new member of the EFBC, who joined us in 2022.

New Year, Same Shared Experience

We asked members what shared experience they received last year that they plan to carry into the new year!

Happy Holidays from EFBC

Our team wanted to put a little something together for our community to show a little gratitude and portray our feelings this holiday season. It is a wonderful time to spend with loved ones and recharge as we head into the new year. To you and yours, happy holidays EFBC!

Members Share Their Flex Forum Experiences

It’s been several months since we introduced our new Flex Forum option, so we caught up with two members who have participated in Flex Forum and asked them to share their experiences.

Appreciation

The season of giving thanks is upon us. Many of us are in preparation mode doing our final grocery shopping for Thanksgiving dinner. Others such as myself will procrastinate until the very last moment and probably make several trips to Trader Joe’s within the same hour on Wednesday evening where I will appreciate the small and efficient footprint of their stores. Either way, there will be much reflecting back on the past year to think about what we are most thankful for.

I’ve been thinking quite a bit about this specific President’s letter and what I want to share with you all on what I am thankful for. I’ll spare you my list of family, friends, coworkers, colleagues, clients, vendors, etc. There are many people that I am beyond thankful for having in my life.

There is a word that is synonymous with “thanksgiving” that we are all very familiar with that kept popping up in my head and in my daily life: appreciation. I can’t recall that word being a part of my daily vocabulary prior to joining EFBC nearly 10 years ago and joining my forum. As we all know, showing appreciation to the presenter as well as appreciating our forum is something we do at each forum meeting. Those are our parting words to each other. It is part of forum protocol.

The beautiful thing is how much the word “appreciation” has become part of my life outside of my own forum. I’ve been visiting forums throughout EFBC and each one has appreciated me for coming by. On a recent vacation with Tina and a few our closest friends, we spent hours at each of our dinners appreciating everything we possibly could. Each round followed by finger snaps. What started out as a joke turned into daily appreciations and words of encouragement on a WhatsApp group chat. Last night, my kids appreciated me, with some coaching from Tina, on my offer to take them to a Bulls game which they turned down. The showering of appreciation has me feeling warm and fuzzy all over.

I appreciate each of you and your commitment to EFBC, your forum, and in being a leader. Thank you for allowing me the opportunity to serve on the board.

Finally, I’d like to appreciate Joe Hogel, a.k.a. MegaPros Joe, who recently passed away. I only had the privilege of meeting Joe on a couple of occasions, and it was a quick handshake and hello. Joe was a found member of EFBC and spent nearly three decades giving back to our community. In reading his obituary and listening to kind words spoken about him by other EFBC members it is more than apparent the impact he has had on many individuals. He will be missed.

To you and your loved ones, Happy Thanksgiving.

We Got Wired for A Purpose!

As we head into the holiday season and say goodbye to the amazing Fall weather Chicago experienced, we want to reflect briefly on another successful program we hosted. Thursday, November 3^rd, 105 guests gathered to support budding entrepreneurs at the Chicago History Museum.

From the onset, our programming goals were to raise money for DePaul University Coleman Entrepreneurship Center’s Annual Purpose Pitch Competition. Each year, the Coleman Entrepreneurship Center spotlights purpose-driven business ideas that focus on doing good rather than the bottom line. The Purpose Pitch Competition is a unique pitch session where Chicago startups pitch their greater purpose and how they plan to fulfill that purpose through their business objectives. Student and alumni groups compete to pitch their unique business goals and objectives to hopefully win dollars to fund their unique startups.

To hopefully draw in guests and appeal to a wide range of potential audience members, our program committee came together and voted on a keynote speaker from one of the worlds leading magazines on all thing’s tech, WIRED magazine. Greg Williams, UK Editor, gave a riveting talk on disruptive technology that spoke both to the students as well as our community of entrepreneurs and business owners.

Our silent auction had 37 items, from various sources, including some donations from our members. As a result of the generosity of our event attendees, we were able to successfully raise $9,000 to directly benefit the winners of the 2023 Purpose Pitch Competition. Our initial goal, as an organization was to raise $2,500 and our members went above and beyond our expectations and goals. The EFBC team and the Coleman Entrepreneurship staff really came together for a great event.

Our silent auction could not have been successful without the help of our amazing sponsors who donated. Big thanks again to all of them.