Tesla is cutting costs, should I cut costs too?

Author: Albina Zhdanova

Here is what the year-to-date NASDAQ index looks like.

  • Coinbase plans to lay off 1000 employees, which is 18% of their total workforce, and they are putting a freeze on hiring.
  • Tesla announced that it will lay off 10% of its workforce.
  • Ali Express will lay off 624 employees.
  • Robinhood will lay off 400 in retail brokerage and 9% of their 300 person workforce in consumer investing and trading services.
  • Gemini will let go of about 10% of its workforce.
  • Crypto.com plans to cut down on its workforce by 5%.
  • Netflix shared that 2% of their staff, or 150 employees, will be fired.
  • Both Uber and META announced hiring freezes.

And besides the fall in stock prices, high inflation, layoffs, and hiring freezes, there are other signals that tell us to be on alert.

Recession or not, now is the right time to examine the processes within your company and how you can adjust them. It's always better to be prepared.

Costs to cut

The most significant expense for any company is human resources. Yet, it's generally not the one that is restructured first.

The first things to eliminate are unnecessary costs. Here are a few tips on how to identify and optimise these costs:

  • Clean up “dead accounts” including licences for former employees that are still running and paid for on the various platforms you are using internally.
  • While you're at it, you might as well check when the last time was that your employees used one of the services you subscribed for. Maybe some employees don't need access or perhaps you will see that the automation you've planned is not convenient in the reality of your business.
  • Review benefits and loyalty perks for employees that no one is using: office supplies, subscriptions, and vendors that provide HR services for you.
  • Marketing expenses that do not work effectively for you. Financial services are limited in terms of the marketing instruments they can utilise, but still, you have things that work and ones that do not. In case you do not have a system that tracks the efficiency of marketing activity, we recommend starting with that.
  • Projects and benefits for the client that they are not using. Maybe you are keeping a liquidity provider for their exotic currency offering, but you only have 3% of the volume there. Is it worth it? By the way, Trade Processor, a liquidity bridge by TFB, can help you see what your clients use the most or not at all.

Costs to optimise

Some aspects of business don't have to be eliminated entirely, but instead optimised and streamlined.

  • Technology is one of the highest costs; therefore, the first one to review. We recommend checking what your competitors are offering. You might find a product with a higher value for the same price or a more cost-effective option. Some business models, for example,, Salesforce or HubSpot, charge extra for each module or function. There are plenty of other CRM providers, though, that have most of those functions integrated into the basic licence and have different business models which might suit you better as a technology partner.
  • Check bundle pricing and discounts. Often, companies offer bundle pricing with significant cost reductions but good value. If you are using multiple software providers, see if you can switch to one vendor and get a better packaged price. For example, Tools for Brokers offers several packages that include the most popular client choices at competitive rates.
  • Expanding your team. If you have enough people now, pause your hiring unless it is absolutely necessary.
  • Evaluate your existing team. It's important, today more than ever, to have the right people in the right place. Maybe, someone has skills and ambitions to handle more responsibilities, do more company development, or would be a better fit in another position. Or maybe, they would be better somewhere else altogether.
  • Marketing is usually a big part of business costs, so talk with your CMO and see how you can perform activities most efficiently.

Costs to invest

Despite being distressing, uncertain times are times of opportunities as well. Keep your head level, analyse data and the market, and make informed decisions.

Important note: don't just trust your gut. Do some research to validate your ideas or adapt them better to meet the market's needs.

  • Make sure you have what your clients are longing for. A small questionnaire will help you determine whether your target audience are traders who would love to trade on high volatile instruments. Or maybe they are more conservative and would like to look into alternative, more secure assets.
  • Re-evaluate the long-term ideas you had. Maybe now is the best time to invest in them, as market conditions may urge people to actively use that product. Money Management systems or copy tools are always a must have, but maybe some extra risk management for your clients will make you stand out?
  • If you don't have KPIs for anyone except sales,start to invest in these systems. They will keep you alert, up-to-date, and help you make the best decisions.
  • Choose your focus. While some costs should be cut and will not impact the business, other aspects are important to keep at a high-quality level. You should decide what is most valuable for your business and make sure it's in a competitive and reliable shape. For FX Brokerages, the core will be the execution of orders. Make sure the bridge you are using is robust and stable, and your liquidity providers give your traders a great trading experience,fast execution, and very good market depth and pricing.

Learning how to optimise your cost structure is an important skill. We want to emphasise that it's not all about cutting costs but also understanding what's important and what's not, and seeing where the opportunity is. Good luck!

By the way, you can get a TFB package with a bridge solution, and you will be just fine. Email us at sales@t4b.com for details.

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