This means business owners may need to turn their focus towards saving money however they can, in order to balance out the equation until they can control their sales again. There are many ways to do this, so before laying off staff or throwing in the towel, ensure you've done these five simple things:
Renegotiate with suppliers
Considering the current state of the economy, it's worth seeing whether you can get better terms for the contracts you currently have in place. In addition to calling each of your suppliers and renegotiating your rates, you can also test the market by shopping around, to ensure that you stay within market value but don't put any relationships at risk.
Cancel unnecessary subscriptions
Like an old drawer that ends up full of useless cables and scraps, businesses can collect unnecessary services and subscriptions over the years. From software to catalogues, now is the perfect time to review your business credit card statements and cancel any monthly services that your business no longer uses or can do without.
Cut a deal on rent
Given the rising level of vacancies in commercial property, increasingly more landlords are willing to cut deals when it comes to office space – especially if you've been a long-term tenant. In addition to negotiating periods of rental relief over the lockdown, many tenants have also managed to bring down their monthly rentals for the foreseeable future.
If cutting a deal on your rent isn't enough, you may want to consider going completely virtual in your business. For many businesses, the lockdown forced employees to adjust to working from home, and some may have realised that there is no real need for a physical office space after all. Not only would this save on rental, it will also result in significantly lower overhead costs and save employees the cost of commuting.
Check your tax deductions
Too many business owners fail to take advantage of all the tax benefits that they're entitled to, which ultimately adds up over the months to be a significant cost. For SMEs, in particular, there are various tax deductions and allowances – many of wArticledhich are industry-specific and often overlooked. It is always in your best interest, as a business owner, to familiarise yourself with all of the available tax benefits and ensure that the business never pays more than it has to.