The COVID-19 pandemic has ravaged businesses of all types and sizes across the nation, and it’s small businesses that have been particularly damaged. Even small businesses that received Paycheck Protection Plan (PPP) funding will still need to navigate some financial difficulties if they are to survive the challenges of the coming months or even years.
Many companies have successfully been able to alter their business models to continue serving their customers and clients during the pandemic. But it is also important to look into cost-cutting strategies that will help you stay financially solvent and potentially even grow your savings.
Here are a few strategies you might consider implementing for your business:
- Cut out non-essential expenses: This is the first and most obvious strategy you should take whenever you’re in difficult financial times. Eliminating non-essential spending will allow you to preserve that cash so you can operate as lean as possible. This includes cutting travel (which shouldn’t be a problem, given we’re in the midst of a global pandemic), returning leased equipment or renegotiating those payments, delaying capital improvement projects, reducing energy consumption and potentially reducing office space if possible as employees work primarily from home.
- Seek out bill deferment: You may be able to get bill deferment if your business has been impacted by the COVID-19 pandemic. Check with your lenders and creditors to see if you qualify for deferments for loans, rent, utilities and credit cards.
- Seek cheaper alternatives for business needs: You can’t avoid spending money entirely, but you can see if some of your expenses have cheaper options available. Look to change service providers if you can get better deals, aim to move more of your sales online, shift your marketing strategies to be more targeted, look for free or cheap software alternatives and consider going to wholesalers for cheaper supplies.
- Get smart with your marketing: You can find ways to cut your marketing expenses without significantly reducing your marketing effectiveness. Your top priority should be keeping the marketing strategies that have worked best for your business. Put more energy into your cheaper forms of marketing as well, such as email and social media, as they are highly effective and require minimal investment. Consider partnering with other businesses on marketing campaigns that will benefit you both.
- Take advantage of assistance programs: There are numerous discounts and assistance programs available for small businesses right now due to the pandemic. Do your research on these opportunities and apply whenever you qualify. Any assistance you can get during these financially difficult times will be extremely helpful for your business and give you some much-needed cushion.
For more tips about how you can cut expenses and preserve your business’s financial stability during the pandemic, contact us at MCG Solutions.