Let’s be honest. We open the news or our LinkedIn feed and more often than not, you’d be greeted by the usual hot business news about how COVID- 19 has affected the economy or about how the unemployment rate is unfortunately on the rise. These are challenging times that come about every now and then and really test the overall structure and strategic foundation of organizations that will have to rely on smart and quick decision-making to adapt and sometimes pivot to stay alive and relevant.
At the risk of sounding overly optimistic (and you might have seen this phrase being thrown around already), this too shall pass and we will inevitably learn many lessons that will help us develop a higher caliber of resilience, adaptability, and perseverance. This is, as I shall quite dramatically put it, one of many Darwinian (In business terms) waves that wash away organisms (which organizations are) that are slow to adapt and evolve in the face of change. It’s no longer a game of survival of the fittest as you will see at the end of the article with real examples of Companies that did the seemingly impossible and not only survived but thrived through some of the most turbulent times in recent history.
You’ve made it through the dramatic metaphor and you’re still reading this article because you’re curious about how all of this ties up with Techniques for You Saving Money for Your Organization. Let’s dive into the tips that you can use Today to adapt AND save money for your business:
1. Cut Extraneous Employee Expenses, not Employees.
Job cuts and the resulting unemployment is unfortunate, yet in most cases, an unavoidable consequence of economic calamities like the ones we are witnessing right now. Though it may be the last straw in the hat for a lot of businesses in these times, SMB’s might have a shot at affording to retain their employees though this will obviously involve mutually agreeable compromises. Bonuses, fuel allowances and most of the other incentives will obviously be out of the question.
With more employees working from home, office maintenance expenses, and overall utility bills which make up a considerable percentage of a business’s operational cost will be minimized. Staying as lean as possible will allow your organization to make efficient, optimal use of overall resources allowing you to outlast your competition that may have let all of this go over their heads.
This may sound quite obvious and cliche but unfortunately, numerous organizations have made the mistake of not applying these principals in their businesses and have rather resorted to terminating scores of employees with very short notice. If you see no alternative to the aforementioned, consider sharing your pool of talent with other companies who might have the need for talent and skill on a short-term or permanent basis through Benchon– pioneers in the talent sharing space in Australia.”Since 2016, BenchOn has been pioneering business talent sharing and has the tool to allocate labor resources swiftly across this turbulent landscape and in so doing, reduce company closures and prevent large increases in unemployment.”
2. Cut down on Employee time
You don’t want to fire your experienced, loyal employees. That much is obvious. But at their current pay scale, you can’t afford to keep them on board either. That being said, there is a way that you might be able to have your cake and eat it too (a smaller cake with smaller bites at the moment) by making cuts in employee working hours where ever possible. It’s pretty clear that employees are going to find it next to impossible to find employment during this time in the case of a series of major lay-offs. But it may be possible to adjust to a reddening balance sheet by reducing the total cost of employment by whatever percentage you see fit.
An overall average of even 30-40% in savings of labor costs could potentially amount to a sum that is substantial and sufficient to keep the ship afloat with all crew on board. Employees working from home will have more time to clearly strategize and plan out the work to be done efficiently within the reduced time frame. Less commuting to and from work also translates to substantial savings in travel costs that will somewhat help employees manage expenses as well. Consider using Collaboration tools like Slack or Monday. With all of your communication and tools in one place, remote teams will stay productive no matter where you’re working from.
3. Outsource, outsource, outsource.
Business process outsourcing has been growing in popularity and adoption among Small to medium businesses throughout the past few years. The obvious reasons behind the attractiveness of this model range from Substantial cost-savings (40-60% when you decide to choose us. Wink wink), flexibility in scaling, and de-scaling depending on business needs and access to a pool of highly qualified professionals who operate with a high level of accountability.
It does not take much research to reveal Real-world case studies of World-renown companies that have reached their heights by the smart leveraging of Outsourcing. Slack, the famous messaging and collaboration tool, for example, started off as an online game. By outsourcing a Development agency, founder Stewart Butterfield was able to grow the business to a 2.8 Billion valuation while being able to focus on customer experience and service. Companies like Skype, Github & DropBox in their initial stages, have also utilized the outsourcing model to great effect in helping them facilitate scale and growth at a lower cost.
Are you looking to maybe explore the viability of applying this model to your business in Australia? Head to the Webpage of CN Global and fill out an inquiry. Specialists in Business process outsourcing with a Highly-qualified pool of professional talent well-suited for your Accounting/ Bookkeeping, Software Development, Support Desk Lvl 1,2,3, Customer Service desk, and many more BPO needs. Find out how you can benefit from a business support partner that has been serving the Australian market for over 20 years.
4. Make an effort to know your customer better
Now more than ever, it is absolutely imperative to direct your marketing efforts with a laser focus while clearly speaking to your target audience. You can no longer afford the luxury of experimenting with significant budgets while watching how marketing efforts will play out with different channels and strategies.
The ongoing crisis will inevitably cause a shift in your customer’s needs and in their receptiveness to whatever product or service that you hope to provide. The key to thriving while so many others will falter is developing a keen sense of empathy to your customer’s current needs and wants and adjusting your approach to better suit what the customers really need with what you are able to offer. Bombarding cringe-worthy emails simply checking on your ”Loyal customers in these crazy times” and similar mails of the sort are utter marketing garbage intended to portray a sense of pseudo-concern. Something better to do is engaging in the act of giving. And by giving, I don’t necessarily mean giving as in charity.
Giving can be done in many forms like Free Advice, Services given for free even if it’s for a limited time, Valuable e-books, free online consultations, webinars, and so on. You can decide for yourself, the best fit whether it’s LinkedIn for B2B, Facebook, Instagram, Youtube, or twitter based on the feedback of how your message and free stuff are reaching organically. Now THAT is letting your customers know that you care by showcasing that you don’t hold back on giving and that you are actually making a valiant effort in getting to know your customer better while providing some free value.
Your customers will remember you for it and will be more likely to recommend your services, especially when you’re willing to give without explicitly (Wink Wink ) stating your intentions of any taking. Head over to our website and let us know more about you and your needs with an inquiry for some Free advice or consultation on Software development, Digital Marketing or Accounting, and Bookkeeping, and even get these services Absolutely Free for you to try out.
5. Bartering: Why haven’t we thought of that?
A Barter system in the 21st century? Why haven’t we thought of that!. With cash reserves running slim and budgets for extra expenses being virtually nonexistent, bartering may be an unconventional (in the modern context) way for getting services and products that your organization requires in exchange for services and products of your own that you can provide in place of cash. In the initial stages of growing our company, we assisted a local Computer Hardware store in setting up and strategizing their digital marketing plans in return for a substantial amount of Technology infrastructure. It was a win-win for both.
It is not unusual for Businesses and companies to be receptive and actually looking for such opportunities as such especially during (I dare say it) Challenging times like this. So, the next time you are in talks with someone who has something your company needs, why not propose an exchange with something of value that you might be able to provide?. This can even open doors to strategic partnerships that could help grow your business immensely in the long-run. Looking for a strategic partner yourself?. Connect with us and leave us a message. We’ve partnered with many exciting organizations in joint ventures that have been mutually rewarding.
A list of companies that were born in Recessions
WhatsApp, Venmo, Groupon, Uber, Slack, Square, Cloudera, Pinterest, Dropbox…. The List goes on.
If they could do it, so can you. And we’re here to help.
“Alone we can do so little; together we can do so much.”
– Helen Keller
Found something valuable that you could apply in your Company? Drop an inquiry by Clicking Here and filling out the inquiry form. One of our skilled professionals will be in touch with you for a friendly chat or a walk-through to help you decide the best strategy for you.
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