A new poll by Business Australia has revealed six out of 10 businesses have reported sales losses of up to 75 per cent this year, forcing them to find innovative ways to cut costs.
The survey of businesses with 200 or fewer staff members found only 18 per cent reported consistent cashflow and only nine per cent have enjoyed growth in sales during the pandemic.
Business Australia has encouraged business owners to look for ways to save money and cut down costs while operating through the changing coronavirus restrictions.
Business Australia Chief Customer Experience Officer Richard Spencer honed in on energy costs as fertile ground for potential cost savings, suggesting that businesses can reduce these costs by as much as $800 each year using the online Business Energy Advice Program (beap) which provides free, independent energy advice.
“Small businesses have been heavily impacted across Australia, but there are simple ways to help your business stay competitive, manage costs and keep cashflow steady”, Spencer said.
Spencer shared a range of tips into the ways businesses can keep a lid on their expenses:
- Go paperless: Reduce how much it costs to send and store mail (and your environmental imprint).
- Compare the best utility prices: 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.
- Negotiate hard: Many suppliers, even landlords, may be able to support businesses through this crisis with extended payment terms, rate reductions or even debt forgiveness.
- Operate online: Shift business operations to the cloud to save on physical storage space and look to sell online if you can.
- Clever marketing: Look to earned media, especially through social channels to deliver cost-effective marketing campaigns.
- Streamline subscriptions: Review and cancel subscriptions you may not need anymore.
