Many businesses are currently going through a tough time. The economy is in an uncertain place, so they may have found their orders have stagnated or slowed down. This means that cutting costs might be needed in order to survive. While most businesses will make it through this tough time, sacrifices will need to be made, so here are some areas where you might be able to make savings.
Negotiate with your landlord
Rent is often the biggest business expense, so negotiating with your landlord may be an option.
- Most landlords will rather offer a rent reduction than lose a tenant and see a commercial building empty
- Landlords can sometimes claim mortgage breaks, so if you can only pay reduced rent, they may not be out of pocket
- Commercial property is harder to let, so you are in a strong negotiating position
Business owners should never be afraid to negotiate with suppliers and that includes landlords, who often give flexibility during tough times.
Shop around for suppliers
Being loyal to suppliers doesn’t always pay off for businesses. Sometimes, shopping around will get you a better deal.
Suppliers will often offer a better price if they are worried you might jump ship. Don’t hide the fact that you will be looking at different options. It may well help you get the best deal. Negotiations can be tough, but remember you are the customer, so deserve to get the most for your money.
See where you can save money with wages
Losing staff should be a last resort, but you may be able to save money on your wage bill. You could look at areas where you are overstaffed and streamline them, which also makes things more efficient. Many businesses are overstaffed, and by cutting down on the number of people on each shift, they can make good savings.
Call in the logistics experts
Logistics is another area where businesses may be wasting money without even knowing it. If you want to cut down on your logistics costs, your best bet is to hire a leading firm such as https://www.rhenus-hightech.co.uk/en/who offer an expert service. Logistics are a complex area, so you are likely to need help in this regard but streamlining could be a good way to increase profits during tough times.
Take a good look at your finances
When you run a business, you may not regularly sit down and review your finances, perhaps simply looking at the bottom line. However, like your household budget, you should regularly review your businesses’ finances, ensuring that you aren’t wasting money. There can be many areas where your business could be throwing money away, from things you’ve forgotten to cancel to overpriced extras, so keep on top of your finances and review them regularly.
With many looming threats to businesses, you may be worried about your company’s survival. That’s why now, more than ever, business owners need to think about what they are spending and cut back whenever possible, from logistics to the cost of supplies.