5 Ways To Cut Business Costs Due To Covid-19
You’ve been a diligent business owner. You’ve tried to limit cost cuts where you can, give your employees plenty of room to express their talent, but things have changed. The covid-19 world of work has become very interesting and yet, very harsh. Cost-cutting is something every single company in the world has committed itself to. There is no other way for you to stay afloat, you just have to cut some pieces of your beloved business off to stay alive. Okay, we’re going to show you how you can do this without necessarily making detrimental cuts that will harm your business outlook in the short-term.
Cut the extras
Usually called incidentals, extras such as office parties, tickets to sports games, discounts for company products or perhaps some catering days when it’s someone’s birthday, have to be cut. Combine your special days to accumulate much of what you would do in this manner. For example, if you have a training day, have a small party at the end of the day instead. This could be to mark someone’s birthday or perhaps it’s a festival such as Easter. Combining or cross-scheduling events and corporate days is a real cost-cutting benefit.
Take the hard choice
When you have to cut employees, it’s one of the worst days of being the boss. But it’s a hard choice that every boss has to make when the going is really tough. Employee salaries are perhaps the number one expenditure that any company has. So cut the employees that would not impact your profits as much. This always falls on the head of the junior employees, but managers and the most talented members of your workforce are the backbone that you rely on.
Clean out the office
If you can do it with less equipment then fine, usea skip bin hire service. They will turn up with the skip of the size you choose, leave it in an area that you pre-agreed and when it’s full they can take it away too. Since your workforce is probably a hybrid remote and office working mix, then you can get rid of the desks, chairs and old equipment that you can’t sell. You will also find that overhead expenditure and expenses dramatically reduce long-term.
As mentioned above, if you are no longer using your office space to the full, then it’s time to cut it out. This will take some thought as you have to be sure that you want to have a permanent remote workforce. It may seem cheaper but remember that team cohesion and mental health play a role in this too.
Reduce spending on management
Business administration is a key part of daily business. However, you should be able to delegate some of the responsibilities onto the managers instead of the admins. Things such as invoices, employee bonuses and time off, could be done at a departmental level. This cuts the cost and shares some of the workload.
Business cost cuts are a normal part of doing business now. The pandemic has changed the landscape of business and we just have to get used to it. But, it won’t last forever so hopefully a new horizon will greet us soon.