Cash is tight for many small businesses right now as non-essential activities are being restricted. Of course, health and safety are paramount during these difficult times. But, no doubt, the health of your business is also on your mind. Finding ways to save cash can help you to weather this storm. But what are some areas that you can pare back so that you can reserve the cash you have for true necessities? Here are some areas to look at when saving cash during a crisis.
Advertising & Marketing
If normal business is halted or while we shelter-in-place, you likely are not concerned with immediately attracting new customers. Are you currently paying for advertising or marketing services? Perhaps these could be suspended or minimized until your business is in a position to take advantage of them again.
In the meantime, you do not have to stop all marketing. There are some free ways to make sure that your company continues to reach people. Social media is a great way to keep in contact and maintain customer relationships. You can create social media accounts, such as Instagram or Twitter, for free. Sending out periodic updates and messages will ensure that, when we are through this, your customers and potential customers have not forgotten about you and your services.
Fixed Monthly Costs
While business is slow or, for some, halted altogether, some monthly expenses which you are paying for may not be necessary. Consider this: apart from rent and utilities, are there any office-related subscriptions that are unused, now that the office is empty? Some examples might be document shredding services, water cooler delivery, etc.
Now is a good time to review and determine if any of these expenses can be paused or canceled. Keep in mind, however, that if your team is working from home, it is advisable to keep the subscriptions that allow them to do their work remotely. For instance, if your team used Slack in the office, they likely will use Slack remotely as well.
Employee Perks & Incentives
We know that you are feeling for your employees at this time. You want to continue to take care of them and that is certainly admirable. Caution must be shown, however, in the way this is done so that your business can survive and your employees can have a job at the end of the day. We are not talking about cutting your employees off from medical insurance. But are there any extra perks that you provide your employees that can be suspended that will enable the company to weather this storm?
These are just a few examples of areas to look at when saving cash during a crisis. Other areas to cut back may be specific to your situation. Your bookkeeper can help you to find cost savings and is a valuable resource at this time. We would be happy to offer our assistance! Please feel free to contact us. We are all in this together!