As a business owner, you'll face a lot of challenges. However, managing your company budget is one of the most significant and ongoing obstacles. Take operating expenses (OPEX), for instance. You must acquire and sustain the money necessary to cover everything from property leases and utilities to equipment and payroll. Although the idea is to use the revenue from sales, sometimes things don't go according to plan. How does your company survive if you miss the mark on sales projections?
Before you assume your only options are to take out a loan, let go of employees, or shut down your operations for good, consider these practical solutions below.
Go Virtual
Commercial leases aren't cheap. Not to mention, you must also cover the cost of utilities, maintenance, repairs, and upkeep. You can reduce your operating expenses by shifting to a virtual platform. eCommerce sites are an affordable alternative to a brick-and-mortar establishment. It enables you to continue to provide products and services to your target audience without a physical storefront.
Will a virtual store work for your business structure? Evaluate your day-to-day operations to determine whether it's possible. You could do this from anywhere if you're a service provider. For instance, this concept may be ideal for web developers, freelancers, marketing professionals, accountants, attorneys, therapists, or private educators.
eCommerce platforms can also work for businesses that sell merchandise that can be shipped to their customers.
Remote Workers/Hybrid Workplace
If your business requires in-person visits or in-house staff, you could consider downsizing by allowing your employees to work remotely. For example, a home improvement company will need a physical location for subcontractors to store their tools, equipment, and work vehicles. You'll also need an address for the delivery of building materials and supplies to complete your projects.
Instead of having a full house, you could allow certain employees to work remotely. Your administrative assistant, accountants, marketing team, and sales reps can make and receive phone calls, access company software, and complete other back-end tasks from home. Subcontractors can be on-call instead of sitting in the office all day. When fewer employees are in the building, you save on everything from space to utilities and insurance.
Commercial Property Agreements With Add-on Services
It's no secret that business operating expenses can get out of hand. Fortunately, some service providers will offer you commercial property and additional services to keep your operations going. Let's say you're interested in starting a restaurant in Austin, but startup and operational expenses are too high. You could look for an Austin Ghost Kitchen to lower your out-of-pocket costs.
Restaurant owners and chefs will receive a brick-and-mortar takeout restaurant with a fully-equipped kitchen, restroom, employee locker room, waiting area, and order counter. You'll also receive additional services like order processing, courier handoff, cleaning, maintenance, health and safety inspections, delivery logistics, and on-site support staff. Lastly, the packages include gas, electricity, water, internet, trash, recycling, and pest control coverage. The best part is all of this is included in your quoted rate, saving you the trouble (and financial burden) of having to acquire these services yourself.
Temporary Staffing And Outsourcing
While most small business owners like to do everything themselves to save money, there comes a time when it's no longer feasible. Sometimes, you need help from other professionals to keep your business running. As hiring full-time employees are expensive, you could consider alternatives like working with temporary staff or outsourcing your needs.
Why pay a full-time salary when you may not have a full workload for an employee? Temporary staffing allows small business owners to hire qualified professionals on an "as-needed" basis. Whether you need someone for a few weeks, months, or seasonally, you can contact a local staffing agency to help you find the perfect candidate.
Outsourcing is another option that enables you to get the assistance you need without paying the high cost of an employee's salary. Whether you need someone to help with marketing, accounting, customer service, or manufacturing, you can outsource to agencies with the appropriate qualifications, staff, and experience to accommodate your needs.
There's no denying that running a business comes with challenges; however, adequate planning can help you prevail. If operational expenses are too much for you to handle, the above business strategies can help you reduce your financial load and take your business to new heights.
