After being in some form of survival mode for a couple of months now, and restrictions starting to ease, many businesses are looking toward their future. Small businesses across the map still face a long uphill battle, but we wanted to dig into how they can lower costs today to help make it through to the better days ahead. And how to really hit the ground running as soon as possible. Here’s what the #TradeElite small business experts had to say.
Topics covered:
- Costs businesses can cut from their budgets without damaging their businesses
- The absolute essentials that businesses should not economize on
- Where can businesses find savings on the essentials?
- How does partnership/collaboration fit into cost-saving?
- Managing cash flow and forecasting during uncertain times
- Should you take out loans to speed up recovery?
- Jump-starting your business post-shutdown while still keeping costs down
Panelists:
Cathy McKnight, PMP (@CathyMcKnight) VP Strategy and Consulting and Solver of Problems at The Content Advisory based in Toronto, ON
Frances Schagen (@FSchagen) CEO at ClearToYou Bookkeeping and Business Support Agency and Founder at Business Owners Success Club based in Toronto, ON
Dr. Halia Valladares, CITP (@HaliaMayela) Professor at Thompson Rivers University, Managing Partner at Global Trading & DS, Inc. based in North Vancouver, BC
Lora Rigutto Vigliatore, CITP (@RiguttoV) Global Business Expansion Coach and Instructor, Certified Incoterms2020 trainer for Canada based in Pickering, ON
Bernadette Fernandes (@on_the_varanda) Founder & CEO of the Varanda Network, based in Saint John, NB, Canada
Daniel Lewis, CITP (@TbyDaniel) T By Daniel Founder, Certified Tea Master/ Tea Sommelier, Author and Public Speaker based in Brampton, ON
Right off the bat, what are some costs businesses can cut from their budgets without damaging their businesses?
A1: During the BUSY times we sometimes overlook poor performing products, now’s the time to thoroughly analyze inventory, cut the poor performing products, and put a concentrated focus on the top sellers. Reduce cost by cutting down on inventory. #TradeElite
— T By Daniel (@tbydaniel) May 21, 2020
A1 Travel expenses. Get familiar & embrace virtual meetings. Huge savings ($$ and time). Turn your camera on…..clients want to see your face. Use the savings on travel time to prepare and nail the presentation. #TradeElite
— Lora Rigutto (@CitpLora) May 21, 2020
A1- excessive inventory, premium services for mobile phone plan review if you actually use all that is included, perhaps you need less, print less, reduce the use of consumables such as paper, paper coffee cups, less eating out, fancy bus. Dinners.#TradeElite
— Halia Valladares (@HaliaValladare1) May 21, 2020
A1: It’s likely different depending on the business, but for service businesses, cut any costs related to tangibles like printing, physical like travel & “go” digital…attend events/networking online. Then adopt & “stay” digital where possible to recover! #TradeElite #SmallBiz https://t.co/DndjmX3yuy
— bernadette fernandes (@on_the_varanda) May 21, 2020
A1 Cut your ‘nice to have’ costs. You know what they are. Anything that you buy ‘just in case’ can go for now. #TradeElite
— FSchagen (@FSchagen) May 21, 2020
@FITTNews A1- More time (sometimes) = More ability to reassume outsourced tasks and thus reducing labour or contracting expenses, however this may not always be the case for everyone from a productivity standpoint. You’ll know what you can handle #TradeElite
— T By Daniel (@tbydaniel) May 21, 2020
A1 Audit all your expenses and make sure they are doing their job. #TradeElite
— FSchagen (@FSchagen) May 21, 2020
A1 Expedited trucking & Air shipping. Most customers have had to change their schedules & want to move inventory 1st. Projects that were urgent may not be anymore.
Communicate to see where you can re-quote freight. #TradeElite— audrey ross citp|fibp (@tresAudrey) May 21, 2020
Flipping the script now: What are some absolute essentials, that businesses should not economize on?
@FITTNews A2 – Content. Content. Content. Don’t ease up on content, but be sure it is relevant for today’s time – now is not the time to be promoting international travel or large events. Instead think about what you can do for your customers. #Content #TradeElite
— Cathy McKnight (@cathymcknight) May 21, 2020
A2 Don’t economize on internet security, now that your people are working from home.
#TradeElite— FSchagen (@FSchagen) May 21, 2020
A2 Clarify the right message and continue to pay for marketing. As long as you are getting ROI, why stop?
#TradeElite— FSchagen (@FSchagen) May 21, 2020
A2: Don’t economize on seeds (ideas) and the planting (processes), so you can nurture them and your team, then harvest, to reap the benefits and hit the ground running with your clients post-crisis. #TradeElite #MyGardenAnalogy @VarandaNetwork https://t.co/p10e6WazW7
— bernadette fernandes (@on_the_varanda) May 21, 2020
A2 Now may be the perfect time to invest in training for your staff. Upskill your people and improve productivity. #TradeElite
— FSchagen (@FSchagen) May 21, 2020
A2 Preparation! No excuse not to invest the time and money on market research. Wealth of online resources available for free. Take your time, do your #marketresearch. #TradeElite https://t.co/A3UA8VcbLf
— Lora Rigutto (@CitpLora) May 21, 2020
A2 Continue to invest in communications tools. Your people need to hear from you even more, now.
#TradeElite— FSchagen (@FSchagen) May 21, 2020
A2- You need to continue advertising your brand and your products, invest in your loyal clients, cutting mkt will be a mistake. Cover fix cost rent, essential salaries, pay suppliers, contract responsibilities #TradeElite https://t.co/VXOFF6MepA
— Halia Valladares (@HaliaValladare1) May 21, 2020
A2. If at all possible… don’t economize your people. Be upfront & let them know if the biz is struggling. Your team can support w/ cost savings ideas or innovative products or services.
Ppl dont want to lose their jobs & will get creative. #TradeElite— audrey ross citp|fibp (@tresAudrey) May 21, 2020
@FITTNews A2 – If shipping products, now is not the time to economize on the “WOW” factor and experiential add-ons our customers have come to appreciate when receiving goods/un-boxing. This should increase, to help generate more customer loyalty & new interest #TradeElite ?
— T By Daniel (@tbydaniel) May 21, 2020
All kinds of great thoughts on what’s really important to continue to spend on during tougher times!
▶️Customer experiece
▶️Your people
▶️marketing/advertising
▶️training
▶️research#TradeElite— FITT (@FITTNews) May 21, 2020
@FITTNews A2 – Content. Content. Content. Don’t ease up on content, but be sure it is relevant for today’s time – now is not the time to be promoting international travel or large events. Instead think about what you can do for your customers. #Content #TradeElite
— Cathy McKnight (@cathymcknight) May 21, 2020
Aside from government assistance programs, where can businesses find savings on the essentials?
A3: Savings can be found in economies of scale: cluster-build a community of similar #smallbiz or those in your supply chain; share costs. Look to seasonal businesses or those affected by crises, they know, learn from them. #TradeElite #WeAreInThisTogether https://t.co/YUzLrjVDvP
— bernadette fernandes (@on_the_varanda) May 21, 2020
@FITTNews A3 If you have been doing business with “GOOD’ companies/ suppliers/ partners… Now is the time you’ll know, these GOOD companies are doing everything they can to help your business continue to flourish. utilize their savings, relief campaigns etc. #TradeElite
— T By Daniel (@tbydaniel) May 21, 2020
@FITTNews A3 – when it comes to marketing and advertising, companies should leverage existing content that has worked in the past. Costs less to update/revamp than to recreate, and ou know it works. #TradeElite #contentmarketing
— Cathy McKnight (@cathymcknight) May 21, 2020
A3. That’s a tough one. In products you have to start looking at where you can save. Asking our Partners for variations. Ex. We like this fabric but is there something similar with a lower cost. Without compromising o quality… it’s tough! #TradeElite
— audrey ross citp|fibp (@tresAudrey) May 21, 2020
@FITTNews A3 – another money saver is to shift to more content marketing than advertising. Take a longer piece and build a content program on it by breaking it down into a campaign of tweets, blogs, etc. #TradeElite #ContentMarketing
— Cathy McKnight (@cathymcknight) May 21, 2020
A3- With their suppliers and providers, i.e. renegotiating contracts with their transportation providers, or establishing new partnerships generating new sources of revenue #TradeElite https://t.co/NHVlJeMBS7
— Dr. Halia M. Valladares (@HaliaMayela) May 21, 2020
A3 Join a local board of trade/chamber of commerce/business or industry association. Often there are member benefits with group discounts for the essentials that can far outweigh the cost of membership. #TradeElite
— Lora Rigutto (@CitpLora) May 21, 2020
How does collaboration fit into cost savings and business recovery? Is now a good time to find partnerships?
@FITTNews A4 – COLLABORATION IS THE KEY! We are stronger together in every way (especially now) keep an eye out for the unique ways companies are altering their operations and see if and how your services might be able to correlate or add value! #TradeElite
— T By Daniel (@tbydaniel) May 21, 2020
A4. Most def. Collabs are key.
Part of a creative pivot could involve a partnership or shared product launch.
Innovative strategies are integral to your recovery. #TradeElite— audrey ross citp|fibp (@tresAudrey) May 21, 2020
A8 Absolutely! Shared expenses is a natural fit. Combining offers can increase the value many-fold. Piggyback services to take your customers on a journey to their ultimate desires. Don’t just sell the food, teach them how to prepare it, serve it, clean up after etc.#TradeElite
— FSchagen (@FSchagen) May 21, 2020
A4: Collaboration not only fits but rules on cost savings and business recovery… imagine sharing costs and recovering together versus reinventing the safest and quickest wheels to recovery… also funner 🙂 #TradeElite #TogetherIsBetter #Community https://t.co/cQSz9fgQeu
— bernadette fernandes (@on_the_varanda) May 21, 2020
A4: It is agreat time to find new partnerships, by collaborating you can share the costs and reduce your risks, plus increase your reach #TradeElite https://t.co/XjuExp8AbU
— Dr. Halia M. Valladares (@HaliaMayela) May 21, 2020
@FITTNews A4 – Collaboration / sharing services between companies can be a great way to save costs and build new relationships. This is applicable both w/n and outside your org. #TradeElite #knowledgesharing
— Cathy McKnight (@cathymcknight) May 21, 2020
Here’s a tricky one. How do you manage your #cashflow when forecasting is so uncertain right now?
A4 Make your best guess with your cash flow, then track actual and update your projections as you go. You will learn and improve.#TradeElite
— FSchagen (@FSchagen) May 21, 2020
A5: Stay focused on using the financial principles you’re accustomed to but revisit weekly or better daily to ensure that cash in is greater than cash out, and that cash out is essential only while looking for new ways to bring cash in. #TradeElite #EssentialCostsOnly https://t.co/pUr1dJWHu2
— bernadette fernandes (@on_the_varanda) May 21, 2020
A5. Get clear on what your costs are.
Start eliminating / shifting anything unnecessary.
Ask for extensions, instead of 30 try for 45 days or a payment plan.
If you qualify for a gov’t benefit – apply.
Re-negotiate EVERYTHING#TradeElite— audrey ross citp|fibp (@tresAudrey) May 21, 2020
A5: By expending in only the absolutely necessary, and continue to look for new sources of revenue #TradeElite
— Dr. Halia M. Valladares (@HaliaMayela) May 21, 2020
A5 Talk to the experts! Reach out to your financial institution or partners like @ExportDevCanada and @bdc_ca. They want to see you succeed and have the tools and mechanisms in place to assist your company navigate through this crisis and into a profitable future. #TradeElite
— Lora Rigutto (@CitpLora) May 21, 2020
A5. In products try:
a pivot to pre-order sales. That way you can collect some cash and deliver a little later.
Or
ask customers for a deposit up front. Maybe just 10% or 15% but something. #TradeElite— audrey ross citp|fibp (@tresAudrey) May 21, 2020
@FITTNews A5 – this is a great time to look at technology /services being paid for vs. actually using. Many companies have 2/3/4… of same/similar subscriptions that could be consolidated down to one for cost savings, and increased efficiency/effectiveness. #TradeElite
— Cathy McKnight (@cathymcknight) May 21, 2020
Is it a good idea to take out loans or other financing options to speed up recovery?
A6 Interest free loans make that decision easier. Use financing to carry you over the hump if you have a realistic recovery plan.
#TradeElite— FSchagen (@FSchagen) May 21, 2020
A6- you should only take out loans if you need it (exhausted all other options), it is still a loan, you will have to pay it back with interest, adding to your costs of doing business, now or later it will reduce your profits #TradeElite
— Dr. Halia M. Valladares (@HaliaMayela) May 21, 2020
A5 I will let the experts handle this one. But, to reiterate, don’t hesitate to reach out to your financial institution and/or your financing partners to analyze the specific options available to you and customize a plan that works for your company. #TradeElite
— Lora Rigutto (@CitpLora) May 21, 2020
A6: Yes, especially if loans are supported by government (i.e., interest-free during recovery periods) and as long as you build in risk-mitigating measures to be able to repay without detriment in case you don’t recover as quickly. #TradeElite #Leverage https://t.co/XeO12mFr1y
— bernadette fernandes (@on_the_varanda) May 21, 2020
A6. Def a tool if you have confidence that your biz can adjust to the new reality (we aren’t going back to before).
If it was faltering & you can’t figure out how it will work or grow… shut it down to avoid more losses. #TradeElite— audrey ross citp|fibp (@tresAudrey) May 21, 2020
A6. This is a “hard look” situation.
You have to brutally scrutinize what you are doing and there is a difference between pragmatic optimism & denial.
If you think this is a short term hurdle – go for it. #TradeElite— audrey ross citp|fibp (@tresAudrey) May 21, 2020
As we look to recovery, how can businesses jump-start their businesses post-shutdown while still keeping costs down?
A7 Get very clear about what is most important to your team members and focus on that. Same with your customers. What is most important to them and focus your resources on delivering only that for now. And tell people why. They will appreciate you more.#TradeElite
— FSchagen (@FSchagen) May 21, 2020
A7 Focus first on high-profit offerings. Meet people where they are. People are thinking safety first, then comfort followed closely by learning. Lean into that. #TradeElite
— FSchagen (@FSchagen) May 21, 2020
What?? Already??? Last answer… A7 By having a strong digital marketing presence. Utilize social media to the maximum extent. Explore adoption of eCommerce platforms which can integrate seamlessly into your operations. #TradeElite
— Lora Rigutto (@CitpLora) May 21, 2020
A7- Communicate they are open to their former clients using digital marketing, launching attractive promotions, engaging in virtual networking, get a deal with the local news for an Ad #TradeElite
— Dr. Halia M. Valladares (@HaliaMayela) May 21, 2020
A7: Start now! Don’t incur additional costs unless you incur additional revenue sources, i.e., pivots. Set new goals to reflect the changes post-crisis, leverage the time to learn, improve your SM presence. #TradeElite #SurviveNowThriveLater https://t.co/N2QicEbZma
— bernadette fernandes (@on_the_varanda) May 21, 2020
A7. For products, In the 2008 fin crisis, we saw a number of customers add “impulse buys” at the cash register. These were lower value items that added to the sale.
What is going to be the C19 pivot?
Personal PPE? Custom Hand Sanitizer?#TradeElite— audrey ross citp|fibp (@tresAudrey) May 21, 2020
#FITTNews A7 – Keeping an outside-in perspective (ie: the audience’s perspective) for eveything you do/say will help ensure the company meets their customer’s needs – now and as our new normal evolves. #TradeElite #AudienceCentric
— Cathy McKnight (@cathymcknight) May 21, 2020
@FITTNews thank you for the invitation to be a #TradeElite chat panelist. In summary SMEs can save $ by collaborating, renegotiating contracts, reaching out to bus. Assoc., EDC, Banks, their suppliers, investing in MKT and caring for their clients #TradeElite
— Dr. Halia M. Valladares (@HaliaMayela) May 21, 2020
Read the rest of the chat and join future discussions by following the #TradeElite hashtag. And stay tuned for the next #TradeElite chat, coming up Thursday, June 4 at 2:00-3:00PM ET, and if you haven’t yet, join us on Twitter at @FITTNews.
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