How Small Businesses Can Cut Costs

How Small Businesses Can Cut Costs

Due to the fact that most small businesses typically lack cash flow and capital, many businesses are experiencing a serious decline in revenue during this COVID-19 pandemic period. For businesses to survive this period they need to focus on their core business processes to reduce cost and optimize their workflows.

Here are ways in which this can be achieved:

Reach out to your service providers

You can try to reach out to your service providers and renegotiate your initial agreements or reduce your current plans to cheaper plans that are affordable. For example, you can renegotiate with your landlord to either reduce your rent or provide you a smaller space with better terms. It is likely that your service provider will be willing to make concessions for you in this situation, in order to ensure your loyalty on the long run. 

 Go digital

Can your business operate online, for example, can it sell its inventory online, provide classes online, or even provide consultation via video calls? if this is possible, do it.

Move to a co-working space

If you have an office that has the traditional leasing agreement, you may consider moving to a co-working space. Most co-working spaces have flexible leasing terms and they're also flexible in terms of size. 

Retrain your staff

Hiring new staff comes with increased costs, so until the current situation eases a bit, you might want to put on hold hiring new employees and instead upskill your existing staff or train them in new skills where possible.

Also, try your best to keep your staff. If you have a good team, it will be hard and costly to replace them later. Even if some of your employees can’t do the jobs you hired them for at this moment, think if you can give them different attributions for a while. There are free or inexpensive online courses that can help you retrain your staff.

Get affordable software

Software apps don't need to be very expensive in order to cater to all the needs a small business has. Think whether you really need all the features offered by that app you pay such a hefty subscription fee for.

If you realize that you never use half of the features you're paying for, maybe it's time to downgrade or switch to a less expensive app, that still provides all the basic functions you need. There is no shortage of good apps on the market that are inexpensive or even free. winguplus, for example, is a management app that helps you manage the most important part of your business by helping you centralize your end-to-end business process, from hr, project management, invoicing, finance management, customer relationship management(CRM), Asset management, and more. You can find such good value apps for most if not all your business's needs.

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