From well-established companies to brand-new startups, every single business entity is struggling to survive the ongoing health crisis stifling the global economy. Yes, some are prepared to handle the situation temporarily, but everyone will feel the effects sooner or later in terms of lower profits, slower growth, and scaling back on all kinds of resources to place their business in survival mode. Knowing how to keep your company stable during the next few months is critical for the overall survival of your business in the long run, and to do that, you might need to reduce certain expenses.
Creating a strategy to cut costs during the crisis may prevent layoffs and similar drastic measures to preserve your business. We’ve compiled a list of some of the simplest, but most plausible steps you can take to start stabilizing your business, using your profits more wisely, and allocating your resources more productively. Here are a few you can add to your own strategy in the hopes of preserving your company in the months to come.
Negotiate with your landlord
In the majority of countries, there’s some form of a lockdown in place preventing social gatherings and enforcing social distancing, which means that offices are mostly not in use. Although for many businesses this means ceasing all operations, if you can run your business remotely and keep working, you’re already at an advantage. That said, you also need to make sure that you don’t lose your office space during the crisis, without overspending on the rent for a space you’re not using.
Considering the crisis, many landlords are going out of their way to accommodate businesses, and this means you have the right to negotiate the price of your office space for the foreseeable future. You can also ask for alternative solutions, such as subletting the space for the duration of the crisis without charging you for the rent, or converting the rent debt into a loan you’d repay once you go back to normal with your own business.
Suspend services when possible
Whether you’re using various kinds of digital tools, software, or concrete services from other partnering businesses, it’s perfectly reasonable to consider cutting back on some of those options or at the very least asking for a temporary shift in your agreement. For example, if you’re normally using your office internet based on a fixed fee, you can consider switching to a pay-per-use packages for the time being.
The same goes for your other service providers and tools. If there’s a free or low-cost alternative to your current PM solution that can keep your staff going without hindering their workflow, that might be a better option, whereas you can certainly reduce costs by reducing inventory spending on non-essential items such as printing paper and ink.
Use your credit card to cut costs
Selecting the right credit card is half the battle when you’re looking for long-term ways to minimize business-related expenses both for yourself and your employees. Although travel is currently limited, you should look for banks and cards that provide discounts in regions where you do most of your business, and with reduced dining and accommodation costs for you and your staff. For example, many businesses select the Standard Chartered unlimited cashback card when they are looking for a long-term solution for their business expenses in Singapore.
The same goes for other equally costly regions of the world where doing business often comes with a hefty price tag whenever you wish to impress a client or negotiate a new account over a meal, not to mention covering for accommodation. That said, credit cards and cashback programs are a viable strategy for boosting your business savings in the long run.
Use cost-effective marketing methods
Right now, people are using their money to buy essentials, and few are willing to spend on gimmicks, entertainment, or costly tech. However, no matter what your products or services might be, you still need to maintain your presence, keep brand visibility and awareness high, and not project an image of someone who doesn’t care about the current crisis. So, striking a fine balance is in order. Instead of pushing for bounds of sponsored posts, you can utilize free and low-cost marketing methods that allow you to bring people together and still keep your followers aware of your brand.
For example, you can use your social media channels to share relevant information and useful tips as to how your customers can use your products or services during the crisis, and of course, how to stay healthy and sane. Then again, you can donate a portion of your profits to COVID-19 causes in your region, and make sure that your business is doing its best in light of the situation while you’re also making a profit and keeping your presence strong.
This is a crisis that will leave many businesses coping with day-to-day issues, while some in the hospitality industry and similar industries will feel the effects of this stalemate for a very long time. Even though there is no ideal way to handle the situation, you can certainly do your best to use what you have more wisely, and to make sure that your workers get paid and retain their jobs while you keep your clients and your relationships intact. Use these tips to ensure a safe future for all those depending on your business, and you’ll preserve your own future, too.