Five MORE Post-Pandemic Money-Saving Strategies for Small Business
As Canada transitions to a post-pandemic state, every business owner is trying to find ways to cut costs. Here are 5 MORE money-saving strategies for small business.
During these uncertain times, doing everything you can to cut costs is paramount. Here are five more post-pandemic cost saving strategies that may help your small business.
We’ve covered cost-saving strategies before, but when you, as a small business owner, are looking to cut down your operating expenses and other costs further without cutting out jobs or sacrificing your business at the core, every idea is welcome. Here are a few more helpful tips to save as much money as you can without having to make tough decisions.
Be careful not to stick to just one strategy
Running a business is not a simple matter, and there are no simple solutions to cutting down on costs without taking risks that could damage your employees’ livelihoods or do permanent damage to your business. Using multiple, smaller tactics and strategies may be the key to cutting down on various costs, and the savings will add up.In general, how much cutting you do in an area will have a direct impact on how well your business will run afterwards. Cutting just five to ten percent or so of your costs will impact your business’s ability to run the least, while cutting twenty to thirty percent of your costs will lead to the most disruption in your company. You should decide how much money you need to save and plan your cuts accordingly.
Using several ideas in increments, especially ideas for reorganization and redesign, have the least impact on your business as a whole and can shave your costs down by around ten percent. It’s recommended that you use more than one of the five ideas below.
Fill vacant positions by utilizing those with time
Instead of hiring new workers to fill vacant positions (and spending more money), take a look around for those who are already available. Some of your existing employees may have spare time through the work day or may be doing work that isn’t necessary such as planning for parties. These employees may be ready for new duties that will bring in more revenue to your small business, such as following up with customers and selling new products or services. This will also help you prevent cutting employees and help you protect their livelihoods.
Look at the small expenses that add up
Every small business has miscellaneous costs that add up over time and are generally so small that they aren’t scrutinized enough, especially by management. These costs can be things such as office supplies, snacks, or computer supplies that are placed into the hands of one or more employees. By requiring that expenses such as these need your approval (or the approval of another supervisor) you can better track and control these costs, and better manage up to twenty percent of your spending.
Revisit old ideas
A cost-saving idea or two that might not have worked for your small business during the pandemic, for instance, may be able to work again in a post-pandemic world. Perhaps you didn’t have the money to hire an IT professional to look for cheaper security software or you didn’t have the time to shop around for less expensive shipping. Now is a great time to revisit these ideas.
Are you spending too much to prepare for unlikely events?
No one wants to suffer from a cyberattack or natural disaster so many business owners wisely prepare for such events by purchasing business insurance or hiring an IT company to manage computer security. But there is a chance that your small business is paying too much for such protections or paying for more protections than it needs.
How can you tell if this is the case? If you haven’t suffered from any such disasters in the last several years, you may be able to shop for cheaper insurance or choose new computer security and data storage with only the services you need. You may also be able to reduce such costs if the events you’re planning for wouldn’t be very dangerous or costly should they occur.
Office parties, trainings, and fun events are great, but when costs need to be cut without harming the livelihoods of you and your employees, or the core of your business, an easy way to do this could be by combining some of these events into single days, if possible. Training events can be done on the same day as office parties, which means paying for catering, equipment, and other similar expenses just once versus over the course of several days.
If you’re looking for an experienced accounting partner who can help you take your small business to the next level, contact us today.