A Lifeline In Today’s Business Climate
The looming uncertainties of COVID-19 are causing companies to take a critical look at their strategies on savings and revenue. Here are a few things you can do to help your company save money and ultimately, stay in business.
Revisit Existing Contracts And Do Some ‘Fine Reading’.
Contractual agreements relating to services, supplies and support from third-parties will need to be revisited and re-negotiated where necessary. Stop spending on services or supplies which are irrelevant at present.
Review All Payments, Especially Those On Auto-Pilot.
If you have payments for external processes and systems set on auto-renewal, you may want to re-assess these scheduled payments. Check on the demand dynamics of the market and spend on only what will bring in some desirable revenue.
Redefine And Prioritize Your Business Needs.
Re-evaluate your operational strategy to prioritize what comes first, second and what to take out completely. Take a hint from this quote:
Then I’m essentially putting them into three groups: There’s the “Must-Haves“, the “Adds Value But Needs Review” and then the “Don’t Needs.” These are things we can easily do without, or are oversights that we need to do something about .Andy English (Finance Director- Tailwind)
Get Open And Comfortable Talking Money With Management & Stakeholders.
The current money challenges, and those facing small and medium businesses especially, are common globally. Openly discuss and agree on the challenges and intended payment plans with your suppliers or anyone you owe a financial obligation to as a business.
Revive, Polish And Leverage A Good Relationship With Your Bankers / Financiers.
Swift and timely movement of funds, bank payments, overdrafts, borrowing rate re-negotiations, and the like have suddenly become more frequent than usual.
A good business relationship with your bankers and financiers is critical to the smooth running of these activities.
In conclusion, desperate times call for well-calculated and planned measures. It is our hope that these pointers will empower and guide you to implement interventions that can save your business now and make it more robust in the future.