The past seven months has been pretty awful for businesses all across the globe, and Canada has been no exception. With so long spent under lockdown, a lot of companies are expecting heavy losses, and are going to need to get creative to save money now that lockdown restrictions have been eased.
Getting the economy back on track is great and everything, but there are issues to contend with too – on November 21st the government is going to cease the Canada Emergency Wage Subsidy that has kept so many companies afloat during this time. Businesses are entitled to a subsidy of at least 75%.
The benefits of this are obvious, but now that this looks to be coming to an end, it is important for you to understand your business might be facing financial difficulties once more. So, here are some of our suggestions we’ve come up with that might help you with this.
Cut down on overheads
Cutting down on overheads is one of the best ways of saving money. Coronavirus has taught us that we can run our businesses with employees working from home if needed, and this makes it easier to reduce the cost of overheads. Stop renting an expensive office space, and instead have a virtual office with a remote workforce.
Outsourcing is another wonderful way to save costs, and can actually make your business more efficient too. Identify the areas of the company that you can outsource, such as the accounting, or HR, and make sure you pay to outsource these. It will save you a lot of money long-term, and this can help with your company’s finances.
Scale back your staff
Okay, so this is the one you didn’t want to read, and we can’t say we blame you. Thinking about letting anyone go is an awful thought, but the unfortunate reality is that this is going to be a very real possibility for you. The financial repercussions of COVID-19 are not fully apparent yet, and you might be in a position where you have no choice but to let people go, so you might as well get used to the idea now!
Waste reduction is absolutely crucial when it comes to saving money as a business, and there are a few ways you can achieve this. We would recommend embracing a lean business model, to cut back on waste and enable you to run effectively using the bare minimum of resources.
There are plenty of important financial decisions your business needs to make, and it can be a confusing and worrying time. Get in touch with us today and we can talk about your business needs, as well as giving you key suggestions that will help you save money and cut costs.