Effective management of fixed costs is crucial for the sustainability of a business. Here are some strategies:
1. Negotiate Better Terms: Try to negotiate better terms with landlords, insurance providers, and other vendors to reduce fixed costs. 2. Outsource Non-Core Activities: Consider outsourcing non-core activities to reduce fixed salaries and benefits. 3. Use Technology: Implement technology that can automate processes and reduce the need for manual labor, thereby reducing fixed salaries. 4. Flexible Contracts: Opt for flexible contracts that allow for adjustments in costs based on business needs.