Cutting Overheads - The FMB way

During the great Economic turmoil where the Western markets had to experience with the Horrifying Recessions- leading to national outrages worldwide because MNCs were FIRING as to cut overheads. If you have to learn how to cut overheads, simply walk into a FMB’s office. From interiors to staple pins you will find a cost cut. It takes years of planning for a FMB businessman to install an Air Conditioner in his office and with all the planning the calculations of power consumption no matter how small or medium scale Enterprise it is has been done erstwhile the installation. What makes a FMB owner go through such a long process of thought before installing an AC? He thinks, can I buy  a machinery for 30 Grand’s which can give an output and ROI! It’s been 35 years to my business and I don’t have an air conditioned office but surely my machines are adding!   This is an important lesson for an entrepreneur as to put company before self. After all it’s your Respect, it’s your Existence and it’s your Identity.   

MNCs often end up with over hiring employees and then during downfall, many lose their jobs, hopes and most importantly dreams. What I learnt from a FMB business is to take 200% from your employees. Their car driver drives for 4 kms. a day and does the entire bank, insurance, postal jobs and small purchases. The guard sitting inside the plant is packing goods, the labour loading the goods is trained with computerized weighing machines.  While doing multiple jobs the employees get more connected to the system and working of the company and their loyalty increases. There exists a special bond between the Owner and employees (bottom and Top line) They start treating their ‘Bhai’,‘Babuji’ or ‘Saheb’ (Owner) as their god. They know it, if they have noone, their ‘Bhai’,‘Babuji’ or ‘Saheb’ is with them. Maybe that is why in FMB SMEs you can find employees working for 40 years!   As startups and SMEs, when you can’t afford to give high packages, you have to hire right resource! You require the right attitude and not much of an aptitude in your employees.