As economies across the globe take a knock in the wake of the global pandemic and fluctuating markets, the future of businesses – big and small – is unclear. The way that you approach the next few months can make or break your livelihood and the livelihoods of those in your employ. Becoming as cost-effective as possible is crucial, as it can save you much needed money for other business functions. In this blog, we point out three strategic changes your digital marketing agencies can make to cut costs.
Cost-Cutting Measure ⋕1: Keeping Track Of Registered Domains To Limit Non-Use
Because digital agencies tend to provide services for multiple clients at a time, we may end up with hundreds of domains registered that we end up not using. While there may be a use for them at inception, a lack of time and other resources can lead to not getting around to using such sites. To avoid wasting resources in this way, it’s important to terminate registrations should there no longer be a need.
Cost-Cutting Measure ⋕2: Monitor Software Subscriptions & End Them Where Necessary
Over time, agencies gradually build software into the daily running of the business. As new software products emerge, we may move on to something better but forget to cancel subscriptions to previous services. By conducting quarterly or even monthly financial checks, you can complete cancellations timeously.
Managing Director of Globital, Damian Papworth says, “Review on a regular basis. We actually review our costs at senior management level every single month … At a downturn, you might shrink for short-term, you might shrink for medium-term, you might go on a rollercoaster. As your revenue shrinks, you want to be able to turn down the volume on your costs too.”
Cost-Cutting Measure ⋕3: Transforming Fixed Costs Into Variable Costs
Fixed costs are among the main killers of businesses during an economic downturn. What are they? These are expenses that you have no choice but to pay for. What you can do is to revisit all the fixed costs in your business and figure out which ones you can transition into variable costs.
An example is the rent you pay for your office space. Look at the length of your lease and how flexible it is. Find out if you can negotiate for a shorter-term lease so that you can opt to have your employees work from home and cut the rental from your expenses should the need arise. This will allow you to explore alternative working conditions, supported by the supplementing of electricity, Internet or other basics for remote work.
It’s all about rethinking your current business structure and finding ways to make it work.
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