If you are one of the businesses whose operations were severely affected by the COVID-19 health crisis, you are not alone. Consider yourself lucky if you still have a business to save. Some are not so lucky that they had to close their doors because of tremendous and irrecoverable losses.
By now, you are probably looking for ways to keep your business afloat despite the pandemic. Cutting off some of your expenses is one practical way to make a higher profit. You may also redirect some of your efforts to more profitable avenues.
One way to save on your business operating expenses is to reduce how much you pay for infrastructures. Infrastructures refer to the necessary facilities that you need for your business to keep running. But do you need them?
These hard times call for the need for an overdue review of your business processes and operations. Here are some ways that can help you cut on your expenses.
Review your IT infrastructure.
Businesses nowadays need to have a well-established IT infrastructure to survive and thrive in this cutthroat and competitive world. You need databases to keep the data that your business operation needs, such as sales transactions, customer profiles, product inventory, and even emails. These databases must be maintained in a server room or a data center. Server rooms can be costly to maintain, from their maintenance to their constant need for low temperatures. There is also the cost of repairs in case of hardware and software problems.
Why not embrace the cloud? Cloud computing allows you to maintain your databases online without the need to pay for hardware and software licensing. You can also invest in cloud backup to ensure that your critical corporate data are safe. If your company uses mostly MAC computers, you can invest in the best cloud backup for MAC. A cloud-based data backup will help ensure that you can access your data anytime, anywhere. It is the best solution for disaster recovery to ensure business continuity, despite physical and natural disasters. You do not have to spend on physical hardware for redundancy and backups.
With your backups and databases in the cloud, you can reduce your operating expenses by eliminating database hardware and the need to maintain a server room.
Give remote set-up a try.
Many companies had a taste of remote work set-up during the lockdowns that ensued in the past months. One of the best takeaways for most from that experience is that many functions can be efficiently done off-site.
If you’ve had the same realization during those weeks of lockdown, why not implement it even when restrictions are lifted? Remote work set-ups allow your business to save on office space and utilities. If you have functions that can be done at home, such as bookkeeping and payroll, then give it a try. You can have a soft roll-out of your new set-up. Have your employees work three times a week in the office, then two days at home. You can then decrease the office working days to two and increase the work-from-home days to three. That can take some getting used to but think of the savings you can make if you can rent a smaller office space and have smaller utility bills. Just ensure to give your employees the tools they need during the transition, such as an office laptop.
Outsource administrative functions.
There is a reason why outsourcing is a flourishing industry. Businesses can save money if they outsource some of their administrative functions to a third-party service provider. For one, you do not need to spend on office space, equipment, hiring, and training employees. You hire third-party services for the expertise that they offer, which may take years if you have to establish them on your own.
Here are some administrative functions that you can outsource to be more cost-efficient:
- Customer Service
- Hiring and Recruitment
- Event Management
- Creative Work (logos, website design, and website content)
- Tax Filing
Outsourcing lets you focus and invest in your core business. Instead of investing in an in-house call center, for example, you can outsource them from a third-party provider that has already established its tools, equipment, and workforce. Their people will have the experience and expertise that you need to provide efficient and reliable customer assistance.
Of course, outsourcing will help you save on your operating and capital expenses while still operating more efficiently.
There may be other areas that you can explore to cut down your costs. Cutting down your expenses will allow you to have a better chance of surviving the COVID-19 pandemic. Small businesses can also seek government assistance through low-interest disaster loans. These are indeed challenging times, and businesses must be creative in finding ways to survive through the new normal.