We asked the experts for top tips on how businesses can stay afloat and survive the economic impact. Read on for insights!
The Coronavirus has greatly impacted small businesses globally, with 1 in 4 small businesses having to close its doors, as stated by the U.S. Chamber of Commerce. This is because many small businesses simply do not have deep cash reserves to dig into. According to Harvard Business School, an average small medium enterprise has only cash reserves to last up to 27 days. If anything, this unprecedented time has made businesses realise the key to surviving this pandemic is to cut down on costs to maintain its presence.
We hope by implementing some of these cost-cutting practices, your business is able to run more efficiently and stay afloat, surviving this unprecedented economic recession.
Tip #1 – Reduce Unnecessary Expenses
Start with evaluating unnecessary expenses to see where you can cut back on. Consider cutting down on business travel allowances (opt for economy class instead) and to postpone bonuses for the time being (your employees will completely understand!) Now’s the best time to also re-evaluate your marketing budget and to put a hold on costly marketing plans. Instead, consider going for digital marketing campaigns on social media. It’s effective and an inexpensive way for small businesses to promote their products and services to customers who are now spending most of their time at home!
Tip #2 – Pivoting the Business Model
If there’s something we can learn from this pandemic, is to adjust, adapt and to pivot! Many businesses are quickly rethinking their business model and pivoting to new revenue streams. Does your product or service seem to be non-essential in the day-to-day life of the new normal? Then, it’s high time to pivot!
Tip #3 – Carry on Working Remotely
By continuing to work remotely, your business can save money tremendously and efficiently. It’ll help to reduce cost overheads but more importantly keep your staff safe during the pandemic. By having your employees work remotely, you can cut costs on expensive office space rentals, save money on utilities like electricity, pantry expenses, office supplies and so much more!
Tip #4 – Use Cube’s Business Storage
Weather through the storm with our business storage solution. With a Cube Business Self Storage unit, you can store your business stock, documents and office furniture at affordable rates. Unlike rental leases for offices and buildings, where you will be tied down with never ending clauses – a Cube Business storage unit lets you decide how long you want to store. No long contracts! Feel free to upgrade or downsize anytime as you require. With our flexible plans you only pay for the space you need.
Store with us and start saving on those overhead costs!
We are in this together and we’ll get through it together.
Contact us today.