We live in some tough times. The global political situation is worsening daily, and the economy is plummeting. Markets are falling, inflation is skyrocketing, and we’re all facing a tough winter in which we will see many companies shut down their projects.
If you don’t want to be one of these companies, you must take some countermeasures immediately. Before winter arrives and we face daily power shortages, we need to be prepared for the events and find a way to stay above the surface with our production and sales.
This may be easier said than done, but every CEO’s job is to make plans and do something about it. If you’re running your own business, this is the right time to think about what you will do with the company and how you will save on your expenses.
In this article, we share some tips that might help you with this struggle. We will share five savings ideas to preserve your budget and a way to get through the winter without announcing bankruptcy. Keep reading and find out more about this.
Table of Contents
1. Work Remotely and Cut on Office Rent
One highly popular way of doing business today is running your company entirely remotely. Think about it, is there really a need for a huge office in the city’s center that costs you $50,000 per month? Instead, you can buy everyone a pro laptop and ask them to do their jobs from home and through the internet.
Hold meetings on Zoom, communicate through Slack, and allow employees to get the best-ever work-life balance of their lives. Talk with everyone about how things should be done best, and save tremendous amounts on expenses by letting everyone work from home in their pajamas.
2. Stop Printing Everything and Go Digital
If you decide to stay in the office, you must make some changes. Many companies have a policy of printing documents and storing them in clusters for future needs. Companies use enormous printers that cost a lot of money and are a vast pollutant and waste energy.
Sell the printer and stop printing everything. Invest in cloud storage, and store all documents perfectly on the internet. Save a physical back copy on your company server, but stop wasting money on paper, ink, and printing. Not only do you save money, but you also save time searching for documents when they are needed later.
3. Cut on Benefits that Employees Used to Have So Far
You probably had employees attracted to work in your company by providing a vibrant workplace full of amenities and cool stuff. You have a kitchenette with drinks, food, coffee, and whatnot. All this has to go for some time or at least until the crisis is over.
Statistics show that companies spend between 20 and 30 percent of their employees’ pay on fringe benefits like a company car, free drinks, food, business flights, private healthcare, subscriptions, etc. These are all cool stuff, but consider cutting them off until it’s time to restore the company policy again.
4. Outsource and Downsize
It may be challenging for many people to put this into practice, but sometimes, it must be done. Analyze who’s working in your company and how essential they are. An ordinary employee often costs business owners more than $100,000 annually, which is a huge amount.
Instead of spending this amount for getting a service, you can downsize the company’s workforce and outsource some of the tasks.
For example, you can let go of the IT department and hire Insight IT technicians coming from an outsourcing IT agency. That’s how you’ll save on expenses and still get a top-notch service.
5. Fly Economy and Use This Model for Everything Else
As a businessman, you often travel around the country for meetings, conventions, business deals, and other things. You used to fly first class, but you might want to cut down on expenses and mingle with the others in economy class.
Do this for everything else in the company. Try cutting down business car expenses, and incentivize to save energy and preserve the environment. You’re both saving on expenses and doing a good thing. Cut every cent where possible, and see how this model makes huge changes.
The points above are enough to see a solid saving start and make it through the winter. Some of the measures might seem too harsh for some, but if you think it is too much, make your own list of priorities and do what you think is best.
If you’re already working this way and following these rules, you’ll probably not have any reason to worry. If your service or product is successful, and you follow these rules, this winter will be nothing more than a chance to learn how the economy works in times of crisis.