Economic downturn: Five ways to cut your business expenses by up to 70%

With inflation and interest rates continuing to impact the spending habits of Australian consumers, businesses across the country are starting to feel the pinch as shoppers tighten their belts. Australian businesses now more than ever need to take action and understand the importance of paring back operating expenses in preparation for the period ahead.

There are several key things Australian businesses can do to easily and effectively cut costs and these include moving away from expensive fixed lease sites to flexible office workspaces. Flexible work hubs like the type delivered by @WORKSPACES offer a mix of options for businesses of all sizes including private serviced offices and coworking environments.

Additionally, the office workspaces also include business suite services from desks and WIFI to kitchenettes, meeting and conference rooms, high-level security services as well as reception and postal services to end of trip facilities, cafeterias and boardrooms.

How to cut business expenses

In a highly volatile economic situation, business owners need to be creative and flexible in their thinking. What may have worked well in the past, may not work well now. COVID changed the way we approach many things. Why not embrace the flexibility that we gained during COVID and apply it to the problems we are facing right now in today’s economy and cut your business expenses by up to 70% applying simple cost cutting measures.

Move into a serviced office in a flexible workspace

One of the greatest lessons COVID taught us was how to work flexibly and remotely. We no longer need to rack up business expenses with large office spaces because we now have an entire cohort of workers who are experts in working with flexible arrangements.

Fixed lease sites are expensive to run and it’s hard to achieve efficiencies due to the running costs, idle floor space and the expense and maintenance of fitouts. Flexible work hubs like @WORKSPACES are the ideal way to run your business because you only need to rent office space that you actually use and you have the flexibility to scale up or down as necessary.

Operating out of a flexible workspace hub delivers cost savings and you get everything you need like kitchens, printing, WIFI, security and meeting rooms, board rooms, reception, etc.

The cost of set up is virtually nil and it comes with desks, chairs and other facilities. Board and meeting rooms can easily be booked when needed and shared serviced kitchen and reception make operating an office hassle-free. You literally walk in and start working right away.

Outsource services

Outsource services that are not a core part of your business, so that you can focus on high value work. Many facets of your business do not have to be done in-house and can be outsourced for a much cheaper price on demand when they are needed.

Accounting, administration and social media are just some of the aspects of your business that can be outsourced with minimal impact to the daily operations of your business. It’s amazing to think that you can even engage Chief Financial Officers on an on-demand basis.

Cut travel costs and move to virtual meetings

Now that Zoom has become second nature to all of us, cut out unnecessary travel costs and host virtual meetings. Particularly if you are cutting down on international travel, there’s also the added benefit of increasing accessibility for all employees in different locations to become engaged; not to mention that cutting back on travel is better for the environment.

Join a barter network

Joining a barter/exchange network is perhaps a less conventional way of reducing expenses but it’s definitely something to look into, if it’s not something your business engages with currently. It may prove to be an interesting and highly beneficial option to explore.

Most businesses have idle capacity. Why not use this and exchange it for services that you would otherwise have to pay for.   Could your company collaborate with another company and exchange professional services? It is perhaps more commonly done than you think.

Use automated technology

Automated tech is a quickly evolving sector and can already be used to reliably handle some basic services that are essential to businesses. We’ve all experienced chatbots before, you could be shopping around for a new car insurance policy and a chat window pops up, asking you what you need help with, and based on your response, directs you to some options.

Many businesses across the globe are already using ChatGPT to handle customer service, email replies and social media posts. The technology behind these AI chatbots is continually improving and can now reliably mimic human interaction. So if this is an option that you haven’t considered before, I think it’s something that you could definitely try out.

Think outside the box to come up with solutions

With the financial year coming to a close soon, businesses will be looking to reign in expenses and maximise profits to end the year well, and make good decisions to start the new financial year with. When it comes to cutting expenses, business owners might have to think outside the box and get a little creative about new ways to cut expenses and bring in revenue.

It’s undoubtedly a tough economic climate right now, however if we make good decisions and take the appropriate steps, our businesses will come out more profitable in the end.

Jenny Folley is the founder and CEO of @WORKSPACES, Australia’s leading premium brand of coworking and private office spaces with offices across the country and overseas.

Jenny Folley,expert and founder of @WORKSPACES
Jenny Folley, expert and founder of @WORKSPACES