The current state of affairs in the economy is anything but business as usual. The pressures placed on global economies and small businesses around the world have created urgency for owners and operators to put together business continuity plans, layoff employees, and even file for bankruptcy. 

Even if you and your business were prepared for a “worst-case scenario” event, even the worst-case models likely didn’t look this bad. Economists are already predicting that we will be in a recession, if not a depression. 

So what can you do to ensure your business is healthy enough to survive the COVID-19 pandemic? In this article, we discuss a few ideas for you to strategically reduce expenses for a stronger balance sheet.

Be Open-Minded About Your Office Space

Think of the Coronavirus quarantine as a mandatory experiment to determine whether your business can operate efficiently remotely. Not all industries or businesses can move to a distributed workforce, but if you find yourself and your colleagues actually enjoying the work from home environment, it’s worth considering for the long-term.

Companies that have successfully built a distributed workforce can certainly attest to the benefits of such a structure. Employees report higher job satisfaction when they are able to work from home, and the company saves thousands of dollars (if not more) and avoids taking risks with leasing expensive office space. 

If your office space is sitting idle and unused at the moment, and serving only to drag down your balance sheet, think about how your company could perform without it. 

Leverage Your Marketing Budget Effectively

In times of crisis, marketing expenses can feel hard to justify. In reality, it’s only hard to justify the marketing expenses that aren’t directly tied to revenue and results. Measuring the ROI of various marketing mediums, campaigns, and channels will force you to be selective about which line-items to continue investing in and which to pause on.

We use the word “leverage” in this section because if you do see a successful marketing campaign or medium, it’s these that you should look to double down on, not reduce or eliminate. In times of downturn, the easy reaction can be to panic and cut all costs. We think cooler heads should prevail and instead, analyze your operating expenses on how they help you achieve your company’s goals.

Plan For The New Normal

As you move forward, it’s important to understand that things will get back to normal, but in the mean-time, you must plan and execute within the confinements of this new normalcy. 

Although some businesses are thriving in this environment, most industries and businesses are being impacted by the pandemic in some material way. It’s important to understand that after all this is over, many of these businesses will still be in business and ready to grow. It’s up to the company’s leadership to use fiscally responsible measures and navigate the uncertainty with a level-headed approach.

If you want more tips on how your business can stay lean and thrive during the downturn, check out the visual below from Embroker with 16 business expenses that most companies waste money on.