Revenue loss is a common challenge businesses face, but it’s happened on an unprecedented scale in recent months due to the outbreak of COVID-19. Thousands of businesses have shut down permanently, and many more are struggling to stay afloat as they try to modify their services to accommodate new safety measures. If your own company has lost customers and suffered losses, there may not be much you can do in the professional realm.
Expanding your marketing, adjusting your model and, in the worst case, downsizing can only get you so far. To make up some of the money you’ve lost, there are immediate options at your disposal. As times change, it’s hard to say where the future will take any company in the future. Preserving your own financial security will help you prepare for anything and, if you save enough, put some much-needed funds back into your company.
Work Remote
If you need to lower expenses in your brick and mortar location, hold staff meetings and conduct responsibilities at home. It might seem small, but this action can reduce utility costs by preserving electricity and other resources.
Remote work could also become a permanent part of your business model, which cuts costs drastically. Some companies will make the shift to entirely virtual in the next few years to save on overhead costs.
Refinance Your Loans
Refinancing your mortgage is a major financial decision, especially in such an uncertain time. But refinancing your auto loan can be much simpler and give you immediate cash back in some cases. You can check it out by using an auto loan refinance calculator to get a free estimate on how much you could save.
Refinancing a car is highly customizable, and you can decide whether you want to lower your monthly payments, lower your interest rates or both. You can use the free calculator by entering your credit score and current loan balance, then review your possible savings for different loan terms.
Talk to Your Vendors
Make new arrangements to lower costs, or negotiate the terms of your existing contracts. You may need to reduce your order quantities during this time to save more, which most vendors will understand. Strive to reach an agreement that keeps you on good terms and maintains a mutually beneficial relationship.
Severing ties unnecessarily can cause difficulties when business picks up again. Besides, most vendors are also struggling with the fallout of the coronavirus, and they’re more likely to offer lower prices or adjust their rates rather than risk losing a loyal customer.
Outsource
If you need to reduce your staff, then consider outsourcing rather than hiring on full-time employees again later. This can result in plenty of savings depending on the scale of your business and the roles you’re eliminating. Of course, this decision should never be made lightly as taking someone’s job away from them is one of the most difficult choices a business owner has to make.
Maybe you’ve already had to let some people go. In that case, outsourcing can provide essential services to your company without having to take on the financial responsibility of a new salary and benefits. There are also many qualified freelancers currently looking for work online.
Interesting related article: “What is a Customer?”