The COVID-19 pandemic has brought about many challenges to businesses around the world. Some companies have been forced to close, while other businesses face tremendous hurdles to stay afloat.
With recurring operational costs and lower transactions, companies can consider the following strategies to reduce their business costs and to temporarily alleviate their financial burdens.
Recycling is one way for businesses to lower costs.
By reusing and recycling products, instead of purchasing new items, it not only lowers costs but also helps protect the environment.
2. Re-Evaluating Your Supply Chain
Companies can take this time to consider this question: How can you streamline your supply chain?
Costs can be shaved as you streamline your supply chain, and re-evaluate your supply chain strategies. This process is also an opportunity for you to identify new, and more innovative suppliers whom you can explore new opportunities with.
Businesses can also consider re-negotiating new terms on a mutually beneficial basis with your existing suppliers to tide through the economic impact of this pandemic, together.
3. Looking at How You Use Your Time
Time is money.
Use this time to reflect on how you have been managing your own time, and what can be done better. With better time management skills, you will be more productive, and can then dedicate your efforts in a more directed manner.
You can also use this lull period to work on the tasks that were on the backburner. By catching up on these tasks, and by planning ahead, you can then focus your mind and energy wholeheartedly on your work when the business picks up.
4. Bartering Goods and Services
Businesses can also consider bartering for goods and services, instead of paying them with cash. For example, you run a human resource software company and are looking for design services for your collaterals–you can consider bartering your software services to the designer or design company in exchange for their services.
This, however, is based on mutual understanding and requires negotiation and discussion with all parties involved.
5. Updating Business Strategies
The previous business strategies you have developed may not work in a post-pandemic world. As we transition into the “new normal”, we need to strategise new ways of ensuring our businesses continue to flourish in a post-COVID business environment.
By updating our business strategies, we ensure that we continue to stay relevant to our customers, and by reflecting upon our previous plans, there will be opportunities for us to find alternative ways to lower and better streamline our production and costs.
In conclusion, the suggestions above aim to optimise your financials, and safeguard the wellbeing of your company in the long run.
It is not going to be easy for any business to grow and expand in this climate, but with the right business strategies, you will be able to do so.