Keeping your costs down: business strategies in 2020
Few would disagree that the business landscape has turned on its head over recent months. Businesses that were once in a solid financial position are now teetering on the edge – and this applies to the vast majority of industries.
It means that any strategies which were set at the start of the year have now been turned on their head. Many companies are now in the business of cutting costs and in reality, this forms the main part of their current strategy.
Bearing this in mind, today’s post will take a look at some of the key tips that you can tap into to give your company the best chance of survival over the short-term.
Reconsider your office space
Something that a lot of companies were forced into earlier this year was the concept of working from home.
The results have been extraordinary; a huge number have decided to completely embrace the notion, and have vowed to do it on a full-time basis.
This is the time where you can mull over such a decision. While you might not feel as though a full-time remote solution is going to suit your business, you might have the option to downsize if you’re only asking employees to come in several days a week in a staggered approach.
Alternatively, now might be the time to try the concept and save some rent. There are companies like Safestore who will store your company’s furniture as you mull over the decision; allowing you to revert should the time arise in the future.
Embrace innovation
Now is the period in which the rules almost go out of the window. You may have had a reliable business model for years, but now might be the time to change.
Sure, some industries won’t fall into this category, but others most definitely will. For example:
- If you offer in-home consultations, should you consider a virtual solution?
- If you operate in the hospitality sector, should you look towards more delivery options?
- If you run workshops, should you embrace the online era?
The above points are very much macro strategies, but by drilling down into your existing processes you should be able to devise ideas that are more efficient in the current climate.
Survey your customers
Another strategy is to survey your customers and go from there. In truth, this is something that you should always do, but there has never been a better time to do it.
No two industries prompt the same answers. In some industries, the customer segments might be comfortable with your existing methods of working and you don’t need to adapt. In others, a much different approach is needed, and you’ll have to innovate (see above) to stay ahead.
It’s worth mentioning that it doesn’t matter whether you are a plumber, or a business selling physical products – the same rules apply. Just because something might be regarded as common practice, doesn’t mean to say that your customers are sincerely willing to accept it going forward.
