The onset of the COVID-19 pandemic during early 2020 brought an unprecedented level of disruption. Countries were placed on lockdowns, the healthcare industry was forced to shift gears overnight, and economic activities were halted or reduced.
These posed a great challenge to entrepreneurs and small business owners. When the exigent effects of the pandemic were beginning to be evident, they had to scramble to keep the business afloat, manage crippling losses, and support their employees.
Cost-cutting ideas are ideal for businesses commonly employing to survive crises. You can also utilise this to keep your startup or small business running despite tough times.
Here are three steps you can take to effectively reduce your expenses, survive the ongoing pandemic, and come out the other side.
- Determine the Areas Where you Cut Down Costs
The most straightforward way to get started on cost-cutting ideas is to identify the expenses you can cut. That being said, while the goal is to economise wherever possible, you must do this without hurting or damaging your business.
Look at your negotiable and nonnegotiable expenses. It helps to look at the core products or services that your startup provides. If you’re in a tight situation, you may find that letting go of secondary offerings for the meantime will free some of your resources. This enables you to provide your main product or offer.
Taking a good look at your financial standing and studying your current offers will enable you to decide where and how to cut costs.
- Invest in Cost-efficient Tools and Services
This may sound counterintuitive as you’re supposed to be saving money, not spending it. However, there are digital tools and services available today that help you and your team become more efficient amidst the new normal. Some may even allow you to bring down costs in the long run.
For example, you may invest in a web conferencing or team collaboration software to allow people to work from home. This helps you instantly reduce office costs. You may also purchase CRM software to improve lead nurturing and follow-up, ultimately aiding your sales.
- Work With Startup Accountants
Getting financial advice from qualified accountants help you manage your financial situation. While you may know your business best, these professionals have the skills, expertise, and experience when it comes to keeping business finances in order. They may be just what you need to survive this crisis—and even preserve your sanity!
Firstly, they can help you keep your books in order. These records help you understand exactly where your business is in terms of funds. This also enables you to make more informed decisions and steer the venture in the right direction.
The pandemic has brought about a disruption that the world has never seen before. As a startup owner, this puts excessive pressure on you and everyone in the team. On the bright side, there are steps you can take to carry your business through these difficult times.
Ultimately, remember that nothing in this world is permanent. This crisis can be very challenging at the moment, but you will safely make it through as long as you have the right strategy and mindset.
If you are looking to partner with accountants for startups in London, look no further than Accotax! We have helped over hundreds of startups, fintech companies, and e-commerce businesses grow over the years. Get in touch with us today to learn more about what we can do for you.