Companies of all sizes are facing disruptions in their commercial operations because of the COVID-19 pandemic. They have to start restructuring their entire supply chains to maintain their current profit margins. Many of them are shutting down unproductive sales channels and discontinuing slow-selling products in their inventory. This enables the companies to save money without having to make most of their employees redundant. They are just focusing on selling the products of their customers in the market demand to generate revenue. This enables them to survive and continue conducting their business activities.
Steven Fisackerly – Cost-saving strategies companies should consider adopting
Steven Fisackerly is a retiree from Long Island, New York. He has a passion for studying and analyzing the latest economic trends taking place in the global market.
He says companies are learning to adapt to a changing business environment after the COVID-19 outbreak. They are following the statutory guidelines the governments impose on them to continue their commercial operations. One of these regulations relates to ensuring their employees test negative for symptoms of this infectious disease. Only then can they return to work and resume their normal duties in the companies’ offices. These corporate enterprises make sure that their entire workforce undergoes a thorough medical examination. Then, the companies allow them to discharge their responsibilities as usual. Abiding by these new mandatory rules increases the companies’ operating expenses. However, many of them are starting to implement the following innovative cost-cutting strategies to save money:
- Cutting the need to rent office space by allowing their employees to work from home,
- Canceling monthly subscriptions to non-essential business smartphones and Internet plans,
- Reducing business travel to outstation and overseas trade conventions unless it is absolutely necessary,
- Opting for free open online courses for employee training and remain up-to-date with the latest industry trends,
- Negotiating business contracts with better terms with various stakeholders to revamp their supply chain,
- Streamlining their entire marketing operations by opting for pay-per-click advertising to generate revenue, and
- Taking out a line-of-credit with more favorable terms and conditions from financial institutions.
Revenue-generation initiatives companies are adopting
Adopting cost-saving strategies is just one aspect of the companies’ survival plan in the post-COVID-19 business scenario. They are also looking at a way to generate more business revenue by executing the following initiatives:
- Conduct transparent business dealings with high-value customers to determine the products which interest them,
- Maintaining healthy commercial relationships with long-term suppliers to ensure the smooth functioning of supply-chains,
- Revamping their business operating model to identify the best ways to utilize their workforce for generating revenues,
- Automating their current invoice system and offering debtors attractive incentives to ensure prompt payments on their credit sales, and
- Investing and making the best use of artificial intelligence and the Internet of things to conduct commercial operations
Steven Fisackerly sums up by saying companies can boost their profit margins in the post-COVID-19 business environment. They just need to devote their time and energies to finding innovative ways to generate revenue. Moreover, they should not hesitate to implement various cost-saving strategies to save money. These measures ensure these companies are able to continue their commercial operations in the market.