30/06/20203 min read

Reduce Costs In Face Of COVID-19 Economic Impacts

Gathering Knowledge

Everyone is feeling some effect financially but this is an opportunity to understand a few things. How are you set up for success to understand what your business and financial position actually looks like? Do you have the tools in place?

You may have thought you were healthy, but you may not have the technology to understand what your business should look like.

When You Need to Shift Marketing Strategy, Financial Plans Quickly, What Do You Focus on First?

As a corporate travel startup, we were at the forefront of seeing that very scary drop-in which revenues dropped significantly in a short time. It was like “skydiving without a parachute.”

We had to take a step back, take a deep breath, and plan.

Classify Your Costs

Model out anywhere from 25% to 75% impact, which will obviously vary depending on your industry. The other support would be when you expect your business to return to normal. Again, sadly for us in the travel industry, the return to business as normal is quite uncertain.

Second, take an inventory of all of your expenses and sort them into categories such as:

  • Changeable or fixed
  • Nonessential
  • Department
  • Type

Go Budget For Reducing Costs

Start cutting back costs that are variable, optional, and don’t have a strong business impact, such as:

Marketing and PR

Recruiting

Events and conferences

Software licenses

Small businesses can see if they can lessen costs depending on what type of support they receive from the Government.

Re-evaluate Your Business

The need for all this is to reevaluate your business. Look at it and understand what areas of your business may be costing more than you thought. It’s important to have the right tech stack that helps you turn to quickly shift operational costs and as well as shift revenue.

Controlling Costs in Today’s Environment

Limitation Of Cost Control Must be Made

The recovery from COVID-19’s economic impact could be much longer than anticipated. Even when we come out of shelter-in-place, business, as usual, may not be what we were accustomed to two months ago. For the travel industry, In Singapore SARS, H1N1 Pandemic is the closest analogue. It took two to three years for travel to resume to normal.

Get Creative With Contracts

Carefully study different cancellation terms and policies in contracts. For example, during the pandemic, an events venue provider cannot fulfil their obligations. That may be a road for you to work with and potentially delay payments or change to another date.

Balancing Employee Needs

Your employees are going through difficult, disheartening times. So how does a company support the needs of employees with ensuring business continuity?

At EzBizTrip, We have a lot of trusts that people will get their tasks done, but we all acknowledge that the timelines have to be more fluid. In this environment, small steps can go a long way, such as enabling employees to expense their lunch for virtual lunch hours to help maintain team bonds, Online classes or even an online get together with the team!

Resources to Help Businesses & Reduce Costs

Not all programs will be great for your business, which is why aligning with your finance team is important.