Today we know every member of the workforce is extremely valuable because when we went home in March, so many things just fell apart. So, where can you cut costs to save money during these uncertain times?
Until a vaccine is available, everyone should stay in quarantine, minimizing social contact. Under this model, we just accept that restaurants, cafes, sports, gyms, theaters, malls, cruises, and airlines basically shut down. But business must continue to move forward or the economy will just collapse. So, how can you ensure your business will survive?
Small businesses only have about 27 days of cash flow reserves
According to Harvard Business School. At this point, most companies are evaluating what costs to cut in order to save a little money and stay afloat. Everyone is so keen on the concept of “flattening the curve.” Really, business owners should be looking at flattening their business curve by cutting non-essential costs.
Maintain a presence in the market and prepare for the rebound.
Here are a few strategies to help you cut costs while keeping your company safe and visible in your industry.
1. Move your sales online and/or to a more virtual environment.
Some companies are able to simply close their brick and mortar store fronts and move to an online-only model… others are not. For those of you struggling to convert your business to a more virtual environment, consider cloud computing and online meeting programs to help you stay connected with your team and clients.
2. Trim expenses at the office.
It’s been a long time since your office has been buzzing with busy bees. Consider talking with your service providers to reduce expenses. Things like disposal services, water delivery, and landscape offerings are a great place to start. Ever wanted to go on that balanced pay plan with your energy company? Now is the time to call and ask about leveling out your expenses or seek cheaper options.
3. Don’t panic, begin planning for recovery.
It doesn’t cost a dime to make a plan. Have you been holding off on implementing a new program or migrating to a new service? Maybe now is a golden opportunity to get things up and running while the impact of downtime is low for your business. We’re not suggesting pushing for pricy projects in the near future, but if your IT guy has been waiting to swap out some old equipment or dump an old copier lease, this may be the perfect time to shop around for a new solution.
Essential technology you should never go cheap on.
Toilet paper! Now there is a topic we’ve all been hearing about to no end over the past few months. No, I won’t pester you on how much to buy or what brand, but it is a great analogy. The cheaper you go on toilet paper, the less protection you have. Technology is very similar. While you’re looking at reducing your expenses, don’t forget to keep these essential security items in place.
Sure, you could buy a firewall anywhere, but the ones you find at the local computer store are generally not commercial grade. There are variations of residential and commercial firewalls. Most commercial grade firewalls offer intrusion detection, gateway antivirus, and anti-spam, content filtering, and VPN features to help you keep your network safe.
All businesses have some level of essential data for their clients and company to operate. Don’t go cheap on your data storage solution. Not all servers or cloud solutions are created equal. Features and capacity may vary based on the provider you choose. Also, security, data migration, recovery options, and storage can be quite spendy. Look for a solution that can house everything you need, backs it up so you have it when you need it most, offers built in security features and doesn’t nickel and dime you for every file you store.
We all use technology to stay connected. Your network is a critical piece of your business to protect. One of the first lines of defense is antivirus software. It guards your computers and networks with the most up-to-date shields against viruses, worms, spyware, and even malware. Without this key component, your network may become compromised by infected computers which could ultimately cause data loss and/or downtime.
Outsource your IT.
Many small businesses, and even some larger ones, outsource because they don’t have to manage IT personnel to get great 24/7 monitoring and services. In addition to availability, the tools an outsourced IT company brings to your company can be invaluable. Why would you want to buy everything outright?