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Facing decreased sales, lost clients, and declining consumer confidence—does your small business feel the weight of these challenges? Economic downturns can indeed threaten the very survival of your business. But fear not, there are effective business crisis management strategies you can implement to get through these crises and protect your financial health.
Curb Non-Essential Expenditure
Eliminating the bulk of your business’ non-essential spending, especially during hard times, can often save you from financial devastation. Here are a few important ways you can trim the fat and improve your bottom line.
Reconsider the equipment not needed
When times are tough for your business, it’s smart to take a close look at the equipment you’re using. See if there are any tools or machines that you’re not really using or don’t really need right now. If you can do without them, consider returning them to the supplier or finding a way to lease them instead of buying outright. If you absolutely need certain equipment to keep your business going, try talking to the supplier about spreading out the payments or delaying them until things get better financially. This way, you can cut costs without sacrificing what you need to keep your business running smoothly, which is a crucial aspect of business crisis management.
Postponing non-essential purchases
This is already a tough time and it’s vital to save as much as possible by delaying or cancelling some purchases. There could be several business expenses you can drop for now to help cut costs like computer upgrades, office furniture and vehicle costs. You can pause or close an account if the software isn’t essential to the current operation.
Save costs on payment processes
Managing payment processes efficiently is essential for business crisis management, as it can significantly reduce costs and streamline cash flow. Automate accounts payable and accounts receivable processes with Forwardly to eliminate manual tasks and high processing fees. You get free bill payments and get paid with instant payments at a low fee of 1% capped at $10 per transaction or free same-day ACH transfers.
With no subscription fees and low processing fees, you’ll save significantly on ongoing costs associated with traditional payment methods. With AR and AP automation tools like Forwardly, you can even reduce the size of your finance team.
Cut payroll expenses
No doubt, payroll is one of the biggest expenses of a company, and it’s an unfortunate reality that some companies are forced to lay off their employees, leaving them with nothing. Meanwhile, some small business owners are stepping up, carrying out their responsibilities diligently and working hard to keep their employees employed through the crisis.
Reduce working hours
You can reduce employee hours, part-time work or limited days, to save on payroll. It’s an incredible alternative for the present circumstance since workers despite everything get their compensations while the businesses set aside cash and abstain from losing their top talent.
Working remotely
Working remotely not only keeps the business running smoothly during a crisis but also saves a lot of money. When your team works remotely, your business can cut costs on things like energy bills, utilities, cleaning services, and other expenses related to maintaining a physical office space. This cost-saving measure can be significant and beneficial, especially during uncertain times when every penny counts for maintaining financial stability.
Suspend employee benefits
Small businesses that contribute to medical, well-being, insurance, and retirement benefits could be temporarily suspended or reduced until the crisis ends. Increments, bonuses, and overtime can also be put on hold. Employees will understand the situation and respect your decision if the measures are taken to save their jobs.
Salary cut instead of layoffs
Depending on how deeply your business has been affected by the crisis, you can apply temporary wage restrictions on all employees or only reduce pay for managers and executives. Though not perfect, pay reduction is still better than unemployment.
Invest in affordable marketing
Marketing your business on the cheap will not only help you to maintain your presence, boost sales, and stay ahead of the competition but also save thousands of dollars. Here are some marketing ideas that work for your low budget in a crisis.
Social media marketing
Social media marketing is an ultra-cheap yet highly effective way to connect with your customers during a critical moment. It is freely available and can help you increase brand awareness, boost inbound traffic, and improve sales. Start by establishing and updating your profiles on major social media platforms like Facebook, Twitter, Instagram, and YouTube.
Focus on strengthening your relationship with clients and customers
During tough times for your business, it’s essential to focus on building strong relationships with your clients and customers. Keep them informed about any changes and be there to support them with any questions or issues they may have. Show flexibility by adjusting to their needs and offering solutions that work for them, which is a key component of business crisis management.
Content marketing
There are many different types of content marketing, but none require significant investment. The best approach is to publish informative, relative, and engaging blog content on the company’s website. Blogging is a cost-effective way of marketing as you can essentially publish and promote your content for free. Make sure to update the content once a week that informs, educates, and entertains your readers in some unique and practical way.
Take action
When times get tough, taking proactive steps to save costs and manage finances wisely can make all the difference for small businesses in terms of business crisis management. By following these strategies and using tools like Forwardly to handle your payments seamlessly, you’re not just weathering the storm but setting your business up for long-term stability. Now, if you are ready to simplify your financial management, start using Forwardly today for free bill payments and efficient payment processing. Head over to Forwardly to find out more and sign up—it’s a smart move for your business’s financial health.
