Every business requires reliable cash flow to stay afloat — especially when times get tough. But choosing where to spend and where to save is a difficult decision for anyone running a business. The coronavirus situation has undoubtedly put a dent on the finances of many businesses which has made it even more important to adopt cost-cutting strategies to control expenditures and maintain positive cash flow.
Identifying non-essential costs and strategically cutting them can help you keep up your profits and prepare for life post-COVID-19. For businesses that are trying to cut expenses to boost your cash flow, here are some business costs you should be saving on to maintain your market presence.
Reduce Vehicle Expenses
If you are running a business that requires a fleet of vehicles, you should be well aware by now how exorbitant vehicle costs can be. From fuel to servicing costs, especially for larger vehicles, these vehicle expenses can end up affecting your finances greatly if not managed effectively.
Commercial Vehicle Leasing
One way to reduce vehicle costs would be to not pay in full for the vehicle, to begin with. In other words, you can greatly cut your vehicle costs by engaging in vehicle leasing. Leasing a vehicle comes with certain advantages such as paying fixed monthly costs, leaving the maintenance and repair works to the leasing company as well as the ability to return the vehicles once the leasing period comes to an end.
At ETHOZ, we offer commercial vehicles of all configurations and customisations to meet your unique needs, allowing you to focus on the parts of your business which matters most. If your finances are tight or you are a business that is just starting out, leasing vehicles is a cost-efficient solution that will allow you to have better control of your cash flow. For the month of September, we are having a promotion for one of the top van rental options – NV200 van rental. For more information, drop us an enquiry or call us at 66547788.
Eliminate non-essential costs
Downsizing your office space
With many companies still adhering to work-from-home policies, it might be a good time for companies to assess their current office space to consider downsizing in the interests of cutting costs. If you run a particularly small business, it might be a more economical option to relocate to a smaller office space which will inevitably help you save on rental fees. In addition, with fewer renters seeking commercial spaces for rent at the moment, businesses can use this opportunity to negotiate favorable terms and conditions to be included in their leasing contracts.
Another option small teams can explore would be coworking spaces, which can be a great option to save on administrative costs especially with most of the team working from home indefinitely in many parts of Singapore.
Look for Alternative Affordable Options
While it is important for businesses to make investments to earn money, the COVID-19 pandemic has taught us that it is always important to have cost-saving strategies in place to survive any unprecedented impact on the economy. For instance, for companies that regularly make wholesale supply purchases, finding the best deals on the supplies you need can help cut supply costs greatly and help you better manage your finances.
Also, since many businesses are unable to accommodate foot traffic in their physical stores, investing in affordable digital sales strategies and moving their sales online could greatly reduce operational costs and engage customers to shop digitally. Seeking such cheaper alternative options can help businesses stay afloat even when the economy has taken a hit.
Seek Financing Solutions
Another way businesses can save costs is by seeking business financing options that best fit the requirements of your business so that you can enjoy the financial freedom it offers.
For instance, at ETHOZ, we offer a variety of loans ranging from working capital loans to term loans and even renovation loans which can help your business save costs and keep your daily operations running smoothly. Whether you’re looking for a technology upgrade or securing investment for your business, you can obtain easy access to our funds at competitive rates so that you can focus on growing your business.
Streamline Your Marketing Efforts
If you have yet to analyse and update your marketing mix according to what works, you may find that doing so will help you cut down on your expenditures greatly. For some businesses, you may spend money on different forms of marketing, out of which some of them may not be as effective in delivering the desired results.
Look for the areas of marketing where you have been investing a significant portion of your finances but are not producing results. Once you have identified these areas, looking for alternative and less expensive ways to get your message across can help you cut costs and utilise your marketing budget as effectively as possible.
Financing Options for Businesses in Singapore
Running a business successfully during the pandemic can be a challenging and stressful period for many business owners. The challenge for many businesses is finding ways to reduce their costs without lowering the quality of their products or decreasing output