The COVID-19 pandemic has taken an enormous toll not only on our relationships but also on our livelihoods and businesses. Owners of companies who are struggling to stay afloat need to look for ways to continue operations.
Measures include cutting down on some costs to increase the business’s profit margin. Listed below are a few expenses that we suggest you should reduce during the pandemic.
Non-essential Services and Subscriptions
Now is the best time for business owners to rethink certain business expenditures. This dire situation demands a reconstruction of business plans and financial goals. As such, you need to plan on what expenses to maintain and to cut.
We suggest you maintain only those services that will further your business’ cause. If an expense does not contribute to any of the essential aspects of your business, let them go. A pandemic is not a time to splurge on unnecessary things.
If you cannot eliminate them, at the very least, keep them on at a minimum. You do not want to be paying a hefty sum for goods and services you do not need during a pandemic.
Consequently, you may want to cancel or downgrade recurring services and subscriptions you don’t currently need. These are services like music, media subscription, magazines, cable, telephone, and internet services. You need to ask your vendors for accommodations on cancellations or reduction of fees for services and subscriptions. Reaching out to them could help you negotiate a waiver of specific penalties. Thus, you will avoid paying a considerable sum in terminating their services.
Parking Fees During a Pandemic
Under current conditions, you and your employees may not be coming to your office for a while. Your clients may also not be coming to your establishment so often. Given all that, you probably don’t need the parking spaces you are currently leasing. Maintaining a parking space now would seem impractical. It would appear to be more burdensome to support, rather than convenient.
You can request your landlord to cancel the fees on the parking spaces, at least until after the pandemic. Alternatively, you can also ask your landlord to change the terms of the lease, such that you will pay parking fees only on days you will be using it.
Housekeeping and Cleaning Services
Keeping your office clean is essential to preventing the spread of coronavirus amongst your employees. However, you need not spend a fortune on cleaning services or housekeepers to keep your office clean and disinfected if no one is in the office. If it is a small task, you and your employees can do it on your own.
Avoid hiring third-party services for simple tasks like cleaning. You can ask your employees to keep common areas and their respective spaces tidy. You can provide them disinfecting tools to help them with the task.
If you intend to cut your spending during this pandemic, doing things you can do on your own would be an excellent way to go. Consider it also as a way to train your employees to be neat and organized.
Events and Trips During a Pandemic
If you have events or company gatherings scheduled in the future, it would be best to reconsider them. You can reach out to your event manager and negotiate with them to cancel the event and refund any advance payment. Don’t forget to cancel the arrangements for venue, caterers, and other services relative to the event.
Even if the contract you have with them contains a ‘no cancellation’ provision, it would still be a good idea to reach out to them and work out these changes.
Also, if there are scheduled trips for you or your employees, cancel them now. Being in a pandemic may not be the best time to go traveling to other places. Aside from avoiding the virus, you can save money for more essential expenditures to keep your business going.
Supplies and Other Recurring Expenses
Reduce recurring expenses and supplies. Avail of alternative modes that will help you save on recurring costs – like going paperless. By adopting such measures, you can save on paper, toner, and other general office supplies.
You can also cut down on other supplies, like disposable pantry supplies. Your employees can bring their cups and utensils instead of using disposable ones. These are minor expenses that ultimately have a massive impact on savings.
Businesses are struggling due to the pandemic. The economy likewise remains unstable following closures of various industries. To survive these unusual times, you must be capable of weathering the storm and adapting to the situation. While it is currently challenging to expand profit-earning activities, reducing your expenditures is one way to boost profit margin despite the pandemic. By cutting down on costs, you can rest assured that your company can withstand the pandemic’s economic effects.
Published by Marc Freedman
Marc currently serves as our Chief Cost Evaluator, expertly advising our client management team on how to help you successfully achieve your business and financial growth goals. A respected mentor to all he consults with, he is an avid collaborator and contributor to the spend consultant community, guiding thought leaders to formulate, design, and install the best operational solutions available to their clients.