The unlikely times brought about by Covid-19 pandemic have forced many businesses to come up with new strategies to stay afloat.
Good thing is that it is possible to serve your customers wherever they are. Whether you sell groceries, clothes or household items, you can adapt to the current situation and make the most out of it.
We have prepared the following cost-cutting measures to help manage your business right now.
Revise your shot term and long term budgets
Before you can begin cost cutting, you need to have a clear view of your current and future expenses. According to Fridah Owinga, a business consultant and founder of Passion Profit, you will need to review your overall budgets for a variable spend, analyze your current data to plan for multiple contingencies and develop a financial forecast for both ‘best case’ and ‘worst case’ scenario. This will help you to come up with a solid blueprint that will guide your business during these unprecedented times and hit the ground running when the economy begins to improve.
Remove non-essential expenses
Job Muriuki, a financial expert and CEO of Momentum Credit advises that after your financial assessment, you need to make expense lists such as fixed, periodical and variable. From these, remove non-essential expenses. Be very critical during this step. If something doesn’t contribute to the core of your business, remove or cancel it. You can try to research other solutions that might be cheaper or even free.
Negotiate with your suppliers for payment extension
Approach your suppliers with a proposal for deferring payments. Rather than wait until you miss a payment or receive an overdue notice, approach your suppliers with a solution. With all businesses and their supply chain affected during this time, many major suppliers will be expecting this and may be able to help you. After all, their business is reliant on partnerships with many businesses just like yours.
Limit In-person contact
In order to protect both your customers and your staff, consider employing less person to person contact buying. Jasper Ochieng’ the founder of Payment Gate says that the best way to do this is by allowing your customers to pay you using digital payment methods so as to avoid physical transactions such as using invoices .
It is highly likely that most of the customers who are buying from you right now are the ones you have built a relationship with over time. Try your best to ensure that they are comfortable every time they shop with you. Inform them about the measures that you have put in place at your store to protect them from the virus as well as to maintain the highest standards of hygiene, says John Kageche, a marketing expert. Appreciating them for shopping with you with a simple ‘thank you’ can go a long way.