For entrepreneurs who are still surviving, keep your spirits up. The last three months have been difficult times for all of us. Unfortunately, until now no one knows for sure when this pandemic will end.
For those of you who have just started a business because you were forced by circumstances, you also have to be enthusiastic. Business competition is getting tighter, plus people's purchasing power is decreasing. This may not be the ideal time to start a business, but if you have the right strategy, your business can definitely grow.
One thing that must be considered nowadays is saving expenses. Unlike office employees, business owners have more responsibilities, in terms of finances. Because of that, you have to be able to continue to think about how to use money and capital more effectively, so that you can breathe longer.
There are several things you can do to save on your business operational costs.
1. Evaluation of Raw Material Supply
Now might be a good time to re-evaluate your product needs. During the pandemic, you may not need to buy as many raw materials as you usually do. Additionally, it's a good idea to see if you can renegotiate with your suppliers. Communicate what items need to be reduced and whether the payment deadline can be postponed. You may also ask your supplier if they offer a discount if you can pay earlier than the agreed due date.
In times like this, suppliers will also understand the situation and conditions of your business. However, you also have to be able to offer something to your suppliers, for example you will continue to place orders regularly even though the quantities are much reduced.
2. Take Advantage of Help & Stimulus
As the economic impact of the pandemic spreads, many service providers, such as utilities, insurance and financial services companies, are offering discounts or payment delays. If you are having trouble with budget allocation and emergency reserve fund savings, don't hesitate to contact the service provider to see if they offer a relief assistance program. Remember, in these times the most important thing is that your business can continue to survive and your emergency reserve funds remain safe.
3. Pay attention to the Budget Items in Detail
If efficiency was already your habit before the crisis, this part probably won't give you too much trouble. However, this time efficiency must be really looked at and taken seriously. One of them is by evaluating where there is potential for expenditure that can actually be reduced. This could include unused rental equipment, business travel budget, software costs, any office space costs and more. Don't forget, you also have to re-evaluate your budget for the rest of this year.
One more thing, re-evaluate for cheaper marketing. For example, with social media. This is a great and inexpensive way for small businesses to promote their products and services to customers who are currently at home spending more time on their screens.
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4. Switch to Online Store
If your business model allows it, closing offline stores is a great way to reduce major costs while maintaining physical distance from buyers. By closing your offline store, you can save a lot of money on utilities, cleaning services, coffee and water costs, supplies, and more.
If your business allows you to employ employees on a WFH basis, this is also a good idea to implement. However, it is important that your employees have all the tools they need to do their jobs successfully while working remotely.
5. Leave Using Paper
If you still use a lot of paper for memos, orders, assignment letters, requests for this and that, reports, it's time for you to switch to electronic files. This can really save your storage space, time and money. Not to mention, using paper-based processes during a pandemic can actually be difficult and risk transmission. For example, if you have to physically deposit a check at the bank or have to meet several people to sign the file.
6. Join the Community
In these difficult times, many businesses are finding unique ways to survive. Join the community to always be updated - regarding possible efficiencies that can be made - and get support from colleagues in the same boat. Communities also often provide education, not a few of which are free. One of them is Qasir. During this pandemic, Qasir is very focused on strengthening the entrepreneurial community by providing a lot of support through improving the quality of products and services, as well as education and support from the community.
Click here or here to join the Qasir Entrepreneur Community.
7. Take Advantage of Free Software
This is an example, if you use POS Qasir which is free, you can still assess which products are your customers' favorites and which ones are not very popular without having to think about the monthly costs. This means that your business can still be monitored, but your funds remain safe.
Apart from that, by using POS Qasir, you can also understand how your income is in a day and from week to week, which you can then analyze as one of the relevant efforts to reduce costs that was discussed previously. Use this data as a comparison of operational expenses and raw material expenses.
8. Switch to Delivery System
For food and beverage businesses, switching to online delivery is one of the most appropriate ways to maintain income. You can use two ways to start implementing this delivery system: through third party applications (online motorcycle taxis and expeditions) or through your own restaurant initiative - if you implement a non-third party delivery system you will need additional workers as couriers. By implementing a delivery system, you can also create various interesting promotions to attract the interest of your customers.
Here are a series of tips for reducing operational costs for you business owners to stay strong in the midst of this pandemic. By practicing these cost cutting tips, Qasir hopes that your business will have reserve funds and be better prepared to return to business as usual after the pandemic subsides.