The economic fallout of the pandemic has been almost equal to the humanitarian crisis. With millions of businesses getting affected, the economic crisis has been felt by almost all brands, irrespective of size or scale.
However, as an entrepreneur or a CEO, you need to show your expertise and guide your organization to profitability. Yes, managing to sustain your business during the pandemic can be a challenge, but it is not something, which is impossible.
If you are smart, understand the changing needs of the times, and can concentrate on the right areas, you will bring your business towards profitability. In this article, we guide business leaders on how to make the most of their existing situations and help their businesses.
Can Digital make a Strong Impact on the Fortunes of Businesses?
If the pandemic has shown us anything, it is that digital and technology are the drivers of the present and the future. Brands, which have been able to properly leverage digital platforms have been able to not only sustain themselves but also generate decent profits.
Bigger businesses, which are tech-driven like Amazon, Google, Facebook, and others have registered astronomical profits. Smaller brands too, which concentrate on digital heavy approaches have succeeded during the pandemic.
According to a leading digital agency, Digitrio.com.sg businesses have strongly leveraged digital touchpoints like-
- Search Engine Marketing (SEM)
- Social Media Marketing (SMM)
- Data Analytics and Management
- PPC Campaigns (Paid Advertising)
The above four digital approaches have helped brands to connect with customers in an easy and effective manner. Businesses, which have failed to make the transition have found themselves losing out on sales, customer,s, and a promising future.
Where are some areas where Businesses can cut Expenditure?
According to the leading thought leaders, every penny saved in business forms part of the revenue. This means that at a time when finances are slow and markets are steadily opening up, going on a savings and cost-cutting overdrive can be very beneficial.
The following are three areas, where businesses can look to cut expenditure during the pandemic period-
1. Rent and other overheads-
Technology and digital can help businesses shift their workforce to a completely remote working model. This means that businesses will be able to save significantly on rent and other expenditures. According to estimates, rent, cafeteria expenses, electricity, maintenance, and other overheads contribute to 30% of a company’s total expenditure.
2. Traditional Marketing and Advertising-
Even before the pandemic hit us, traditional marketing and advertising were already losing steam. The pandemic has in many ways, accelerated their demise. Businesses should cut down on hoardings, banners, live events, and other physical models of marketing and advertising. This will help save on marketing expenses, which are never going to give the desired ROIs.
3. Hiring and Investing-
While for some businesses, investing in new personnel and resources might be a good thing, others should be careful. If you are certain that the investments are sure to bring results and will not put you in a difficult situation, then you can proceed. Else to be on the safe side, you should stop any further hiring or investments to ensure you tide over the period.
The Bottom Line
Being safe does not mean that businesses should abandon innovative thinking. In fact, businesses, which have been able to think out-of-the-box are the ones, which are truly raking in the profits. Brands need to remember that all it takes is just one viral video on Facebook or Instagram to break the bank.
However, the process leading up to the viral video needs to be carefully planned, optimized, and executed. Once you have been able to utilize the full potential of digital marketing and cut down on unwanted costs, all you will be left with are pure profits.