How SMBs can Save Money During COVID-19 Crisis
By Analytix COVID-19 Support Team
During an infectious disease outbreak like the COVID-19 pandemic of 2020, it’s important for SMBs to get information and guidance from trusted sources. The team at Analytix Solutions offers years of experience helping small and mid-sized businesses with continuity planning, crisis management, execution, and recovery.
Based on our extensive SMB experience, we recognize that without cash flowing, payroll processing, and vendors delivering, your business can’t survive. In light of that, below are some cost-cutting options for you to consider during these uncertain, difficult times of crisis.
Since cash flow is the biggest impact for every small business owner, some initial money-saving steps are:
1. Hold off on certain expenses, such as travel, trade shows, paid lunches, corporate events, etc.
2. Test remote workforce as a hybrid solution or backup alternative.
3. Review all dues, subscriptions, and infrastructure costs.
4. Be flexible with & help your monthly recurring revenue clients get through this to minimize any long-term revenue loss.
5. Avoid closure unless specific circumstances warrant. (More below!)
6. Review operating hours & double down on takeout and deliveries.
7. Reduce labor costs, and ask fixed salaried employees to cover hourly.
8. Take care of your employees & understand how unemployment insurance works so you can properly advise them.
9. Negotiate and/or cut all costs.
10. Reduce vendor purchasing, and freeze when available.
11. Forecast sales and cash flow, prepare to raise capital and get loans.
12. Use email, social media, etc. to inform and communicate with your clients.
13. Consider laying off poor-performing employees.
14. Introduce the idea of furloughs, and ask all staff to take a week or two off without pay to help lower the payroll amount.
15. Ask all staff members to take a 10% pay cut across the board.
16. Implement an immediate hiring freeze.
17. Ask people to put in extra hours as needed.
7 Ways Analytix Can Help Now
1. Manage your cash flow in order to help plot inflows and outflows.
2. Determine your break-even point based on different scenarios.
3. Monitor & update your budgets and forecasts.
4. Manage your payables by prioritizing.
5. Identify areas where your expenses can be reduced
6. Provide guidance on your non-finance related concerns.
7. Act as your part-time business analyst, CFO or controller.