Monday, May 16, 2022

3 Ways Small Businesses Can Cut Costs in the ‘New Normal’

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Starting a business is the end game for many who are still part of the workforce. 

But, it is not easy to transition from employed to entrepreneur. The fact that we’re two years into a pandemic has made it more so. Small businesses are currently doing all they can to stay open in these trying times. If you’re in the same boat, three ways to stay afloat are here.

1. Cut down on non-essential spending.

Operating lean is crucial to surviving during the COVID-19 crisis. That means having to cut all non-essential spending. These could be anything from gifts to online game privileges for employees.

Suppose your business involves leasing equipment. You could renegotiate payments for unused ones, including fleet vehicles. 

If you rent an entire floor of a commercial building, you could downsize. You can also renegotiate with your landlord for more favourable payment terms. 

It is also good to switch to LED lighting. While you are at it, invest in a smart thermostat as well. This can help you save on your utility bills, which is already a big thing.

2. Opt for affordable digital marketing.

You can reduce marketing expenses while weathering the storm. We’re transitioning into the new normal. It means it’s the best time to seek new and affordable solutions to maintain your brand’s online presence. Take a look at the strategies you’re using. Focus your efforts on the ones that are working. Remove poor-performing campaigns to maximize efficiency.

3. Look into bill deferment.

Research on banks, lenders, and utility companies offering bill deferment for businesses struggling during the pandemic. Try reaching out to some of them to see if you qualify for a forbearance.

Your credit card issuer might also be willing to drop interest charges so you can stay on your feet. Inquire about existing programs or negotiate your payment terms. If worse comes to worst, you can remind credit card companies that dealt terms are better than bankruptcy notices.

Takeaway

As we go through what is hopefully the tail-end of this pandemic, it’s crucial to keep business costs down. This is crucial if you want to continue operating your business. Along with other small business owners, you need to adopt ingenuity and innovation.

You and your startup enterprise can survive with the right plan in place. You can both live and flourish to serve your customers another day.

Picture Source: pexels

Author: Ivan Serrano

Statements of the author and the interviewee do not necessarily represent the editors and the publisher opinion again

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