4 Creative Ways to Reduce Business Expenses During Coronavirus
Robare and Jones Financial Advisors on Working Remote
Since COVID-19 has rocked our world, the consumer markets have been anything but normal, causing many businesses to scramble in response. Even as time has progressed, a survey of CFOs and Wealth Management firm indicated that the financial impacts of coronavirus have put many companies through the stress test of being as lean as possible when it comes to minimizing expenses.1
Here's strategies from financial advisors that can be used to help consolidate your spending and protect the longevity of your business.
Way #1: Switch to Remote Work
Over 60% of employees have transitioned to working from home as a result of the coronavirus.2 Remote work has become extremely popular as of recently, and for good reason; it can be a big saver when it comes to resource expenses, and it often compliments flexible work schedules.
If your business is in a position where it can adapt to remote work, take the opportunity to do so. This will drastically reduce employee-related expenses and can also serve as a segue into other cost-saving actions.
Remote work has also opened the doors to a much larger pool of applicants for a job opening. LinkedIn has often seen hundreds of job applicants for a remote position within the first day of a job posting.
Way #2: Eliminate Unnecessary Expenses
Odds are that your business has changed since Coronavirus has broken out, and here's the top expenditures we have seen reduced across many industries.
Don’t let the excuse of “stocking up” stop you from cutting costs on office resources. This includes everything from office equipment or space to simple expenses, such as toiletries or paper supplies.
Office Utility and Communication Services
Many business models have completely changed now with the increased remote work, and with that our needs for office services are different. Think about necessary utilities such as heat, water and electricity, but also don’t overlook other recurring subscriptions you may have, such as internet, phone or recreational services.
Travel or Parking
For most industries, travel expenses are already way down. Take further advantage of this by reducing parking expenses for parking spots you may not be utilizing. If you’re still having employees travel, it might be time to evaluate if it’s really necessary or not.
Way #3: Take Advantage of Flexible Billing
Many suppliers, banks and landlords are being flexible and understanding during this time. It may be worth it to at least reach out and ask what options may be available to you. They may allow you to delay certain payments or take out a loan until your business is in a better financial position.
If you take this route, be sure that you fully understand the terms of your agreement. The last thing you want is to get stuck in a worse financial position down the road.
Way #4: Rework Your Marketing
Now 84% of marketers have completely renewed marketing strategies in response to COVID-19.3 You should try to reduce marketing expenses that no longer offer an advantage, such as an advertisements at large in-person events. This doesn’t mean, that these marketing strategies will never come back into play, but for the moment, it's a good idea to test different strategies that are more virtual friendly.
Diving into digital marketing and becoming creative to stay ahead of the curve. More people are on the internet now than ever, and if you leverage it correctly, you may just build your company’s presence and generate some more revenue. The internet has also seen an increasing amount of new demographics becoming users with seniors leading the way.
Don’t lose hope if your company’s financial outlook is unclear. Simply continue to focus on your growth, find new ways to market, and cut costs where you can. As always check with your best local CFP Wealth Manager at Robare and Jones for advice on the financials of your business and how that can tie into your retirement.
What expenses have changed for you from COVID-19?
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Houston Texas