The way we do business has changed due to the COVID-19 pandemic.
In these challenging times where the economy remains unstable, you need to be particularly aware of your spending habits.
We list down some of the money-savings tips to help your business survive and thrive during the pandemic.
Here are some of our practical recommendations:
1. Review all expenses
First things first, you have to review your expenses. If you don’t record all your expenses properly, you’re going to be in trouble. How can you manage something if you don’t keep track and record it?
- Use Excel spreadsheet or accounting software to organize and track your expenses
- Never neglect the importance of having a reliable accountant. Having an accountant can help analyze where your business is heading.
2. Cut back unnecessary subscriptions
Review all your subscriptions and cut the services that you are no longer using or you don’t necessarily need. You will surely going to save money from doing this exercise.
When cutting unnecessary subscriptions, the question you should consider is: Do you really need it? Or are you really using it?
3. Reduce electricity usage
How much does your business spend each month on electricity? Reducing your electricity consumption comes with many benefits. Aside from reducing your electricity bills, it’s also good for the environment.
- Unplug electronic devices when not in use
- Turn off the lights; choose energy-efficient light bulbs
- Switch off air conditioning when it’s not needed
- Shutdown computer/laptop after work hours
4. Go paperless
In this digital age, going paperless is already possible. By going paperless, you are also contributing to making the planet a more sustainable place.
- Maximize online tools like Dropbox or Google Drive to store large files. You can also use Google docs when creating a working file with your colleagues
- Use note-taking apps like Evernote, Google Keep during meetings instead of notebooks
- Reuse waste paper for scratch or notes
- Share your company-wide announcement via email instead of printed memos
5. Say goodbye to traditional marketing
Truth be told, running ads on TV and in print is expensive. Explore low-cost marketing practices like the new forms of digital marketing. For example, you can maximize Facebook to promote your products. Running ads on Facebook is relatively cost-efficient than running ads using traditional advertising methods.
- Knowing your targeted users (demographics, location, age-group) can make your Facebook ads more effective
- Focus on social media channel where your customers is most active
- Encourage referrals and word-of-mouth marketing. Let your customers share their feedback and review about your products or service
6. Collaborate with other businesses
This can help you save money on marketing expenses. Look for non-competing businesses that complement well on your products or services. Find out how you can help each other. Through collaboration, you can promote each other’s products or services – that’s a win-win solution!
7. Barter or make an x-deal agreement
When you’re running out of cash, try bartering with your suppliers. After all, there’s no harm in trying. Instead of paying in cash, you can exchange one service for another.
For example, if you’re running a digital marketing agency and you’re looking for an accounting firm, you can barter successfully by offering your digital marketing services in exchange for their service.
Remember, when things become extremely tight, leverage on what you’re good at.
To save on labor costs, you should consider outsourcing so you can focus on what matters most for your business. When you hire freelancers or independent contractors, you don’t need to provide benefits that are expected for full-time employees. For non-core activities, you can hire virtual assistants.
9. Get interns
Getting interns instead of hiring full-time employees can help you save on labor expenses. The energy of young people can also benefit your business in a positive way.
- You can look for marketing interns who can help you in managing your social media accounts. Leveraging on their strengths while preparing and helping them transition in the corporate world is a win-win solution!
10. Go virtual
This will help reduce your operating costs that would have gone to pay rent or utilities. Embracing telecommuting is now also a norm due to the COVID-19 pandemic.
Utilize online tools and services that can help your team transition to the virtual world smoothly. Digital is the future of the business so learning to adapt to these changes will not only save on costs but will also benefit your business in the long run.
11. Negotiate. Negotiate. Negotiate
Negotiation is always part of the game. If you don’t negotiate, you will miss out on the chance of getting a discount or payment extension.
You can reach out to your suppliers or financing companies and tell them about your situation. Negotiate and give them the assurance that you will pay them no matter what. Always keep a good and healthy relationship with your suppliers so you can leverage on that when you need to negotiate on terms and payment extension.
Being your own boss comes with a huge responsibility, and we do understand that sometimes cash flow can be a little tight. We also know that, in order to grow, you need to increase inventory or beef up your capital. RFC supports Filipino entrepreneurs by offering flexible business loans.
We help your business dreams take flight.