Business hit by COVID-19? Here’s how you can save on running costs
Most businesses go through a period where they need to reduce their running costs. Generally, it’s good business sense to keep your running costs as low as possible.
But for the many businesses that have been impacted by COVID-19, cost-saving has become an urgent need in order to save jobs and keep the business afloat.
While it’s not always easy to find areas to make savings, there could be some ideas you’ve never considered before, helping you reduce some of your outgoings and help your business avoid the red.
Whether your business has been hit by COVID-19 or your simply looking to cut back, here’s how you can save on your running costs.
Photo by JESHOOTS.COM on Unsplash
Reduce your office costs
COVID-19 has shown many businesses that it is possible to make a success of modern ways of working. Flexible working and working from home has kept a lot of business afloat at this time, but it’s also shown what the future could look like. With more people working from home, there is less of a need for a large office space – could you slim down and encourage more remote working?
In addition to reduced office space, you could also save money by cutting down on the amount of equipment you have, as well as other costs such as parking.
Consider running a cost assessment to see if changing your office space could save you money.
Slim down vehicle expenses
Could your business slim down its vehicle expenses to save money? If your use of fleet vehicles has gone down as a result of COVID-19, there are some savings that could be made. From changing your lease contract to selling off your excess vehicles, there are different ways to reduce business vehicle costs to have a significant impact on your bottom line.
Take a different approach to your tech
Tech costs can be significant for a business, but there are ways to reduce them. For a start, consider refurbished items when you next need new technology, you don’t have to have the latest specification each time.
It’s also important that you maintain your technology and equipment to preserve its life for as long as possible. Investing in compressed air dryer systems can prevent equipment from becoming damaged, as well as making sure the environment is cool enough. Regular maintenance of your tech equipment can also help prolong its lifespan, picking up on issues before they become beyond the point of repair.
If your employees are leaning more towards home working, a switch from more affordable, lightweight laptops could be a cheaper alternative to an office full of desktop machines.
Consider outsourcing over full-time employees
Business needs change all the time, which can make it difficult to fill certain job roles. If, for example, you regularly need graphic design services, but not enough to warrant a full-time worker, you could outsource to an external agency or a freelancer.
Outsourcing has multiple advantages for businesses, and can even serve as a trial period to assess your ongoing business needs. You can benefit from expertise and being able to save on other staffing costs too.
Work on your sales process
By refining your sales process, you could boost your business’ revenue. It could involve some more detailed research into your customers’ purchasing behaviours, as well as their needs, to make sure you’re providing the services they want. It also helps to conduct regular training with your employees to make sure sales techniques stay sharp and your strategies are aligned with your objectives.
Cut down on travel expenses
Travel expenses can eat into business budgets, but is travel as necessary these days? With COVID-19 putting restrictions on travel, and advances in telecoms making it easier than ever to conduct productive, engaging meetings, you could make some large savings on your business travel costs.
Renegotiate with suppliers
When you’re looking for areas to save money, it’s natural to look to your suppliers to see if savings can be made. Your business needs might have changed, which would reduce your demand, but there could also be some room to negotiate with your suppliers. As your procurement contracts come to an end, consider renegotiating your terms and asking for quotes from other suppliers. Your existing suppliers will want to hold onto your business, so there could be some wiggle room to land yourself a favourable new deal.
Make your business greener
Is your business as efficient as it could be? Perhaps there are steps you can take to make your business greener by reducing waste and cutting down on your energy costs? Making sustainability a part of your business will demonstrate your commitment to the fight against climate change – something that will resonate with both your clients and your employees.
A sustainability plan can be a key part of your business’ ongoing strategy as you find new and emerging ways of operating a greener business.
Get smarter with your advertising
If your business has significant advertising spend, you should think about alternative ways to promote your business that can still have the desired impact. Some analysis into the return on investment of your current methods could help provide some interesting insights for your business and make you think twice about where you advertise, and how much you spend.
Social media advertising can share your messages with a wide audience, allowing detailed targeting that could help you connect with your target market. Social media advertising is possible on a small budget, allowing you to experiment with different techniques and platforms before investing more money in your digital advertising.
It can be impossible to predict how world events will impact your business, but what you can do is keep your running costs low to make sure you’re running your business as efficiently as possible. Cutting your staffing numbers should be a last resort at times like these, so consider all of the cost-saving options available to you to help you keep your business afloat.
