A new Business Australia poll of businesses with 200 staff or fewer has revealed that 60 per cent of businesses have suffered a drop in revenue during the pandemic, while only 18 per cent experienced a consistent revenue and a slim 9 per cent enjoyed a growth in sales.
Business Australia chief customer experience officer Richard Spencer said businesses can trim their costs by following a few simple rules.
“Small businesses have been heavily impacted across Australia, but there are simple ways to help your business stay competitive, manage costs and keep cash flow steady,” Mr Spencer said.
He shared his top six tips to help cut down on business expenses.
According to Mr Spencer, by going paperless, businesses can reduce how much it costs to send and store mail, as well as their environmental imprint.
Compare the best utility prices
Much like private consumers, businesses are encouraged to compare prices and switch providers if they offer a better deal on electricity or gas.
“The average saving is just over $800 per year for businesses,” Mr Spencer said.
According to Business Australia, businesses must negotiate towards a better deal.
Many suppliers, even landlords, may be able to support businesses through this crisis with extended payment terms, rate reductions or even debt forgiveness.
Mr Spencer advised businesses to shift business operations to the cloud to save on physical storage space.
“Look to sell online if you can,” he added.
Mr Spencer’s advice is to look to earned media, especially through social channels to deliver cost-effective marketing campaigns.
Lastly, businesses are encouraged to review and cancel subscriptions they may not need anymore, freeing themselves up of unnecessary costs.