It is accepted and noted that the effects of COVID-19 will be widespread and long-lasting. Therefore, it is paramount for all small businesses and start-ups to make as many savings as possible and to consider changing the way they do business.
Small city start-ups and businesses have been through a lot over the last 24 months. The next period is expected to improve financially; however, 2021 will likely be a tough year as the city begins to regain lost trust, recover from high debt, and deal with displaced workers. You may be surprised to know that in the midst of all this, some businesses are flourishing. Generally, the ones that are able to adapt and change.
Here are three simple hacks that can get your business ahead of your competitors and save you some money:
01. Financial Belt Tightening
It is the buzzword of the moment, everyone is being told to tighten their belts, spend less, and ride out this quiet time. For small city businesses, the lack of footfall, customers, and general daily trade can be bank-breaking. However, just as individuals and families are spending less, so too should your small business or start-up.
Do a complete business financial assessment as part of your yearly strategic planning and pinpoint all those areas from your income and expenditure statements where you can save money. You’ll be surprised at the number of different ways you could save for your business.
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Remember the small things add up, so if it’s paper, water, or overtime costs, find those expenses and implement cost-saving plans to convert them into savings.
02. Optimize your Supply Chain
As a start-up or small city business, you need to be as flexible as possible. Save on warehouse space by having a supply chain that mirrors your business. Shop local to save on transport costs and know your area. Know who makes what, where they are in the city, and how this can help your business. This will, as with your finances, entail a full analysis of what the current situation is and then improving this. If you can’t do this, there are those who can assist, have a supply chain analysis conducted by the experts.
View this as an opportunity to streamline and improve your operations, keeping in mind that as we move towards smarter, greener cities, you will be encouraged to travel less and shop more local. Why not start now?
03. Move Storage, IT Applications and Communication to the Cloud
Your bricks and mortar concern may be on the street and may remain there for the foreseeable future, but in the age of big data, growing internet saturation, and booming ecommerce, you will need to join your customers and clients online. There will be long-lasting risks associated with Covid-19, and as such, moving online should be seen as a sustainable opportunity.
Your IT and tech will be a critical cog of your entire money-saving plan. You will save both time and money by using available, current technology through a software provider in the Cloud. Invest in a long-term plan and get rid of the obsolete, local server stood under a desk or in a corner somewhere.
All your specific applications can be run, maintained, and reported on in the Cloud. There are a number of options available, just ensure your platform is compatible and you integrate with your suppliers and buyers.
These are just three simple tips that can help your business through the tough times. The city will be back, but for now, there needs to be recognition that this change is unavoidable; simply be prepared to adapt with it.