Making money is great, but there’s something even better than that — saving money! Anybody who knows anything about business can tell you that keeping the money you have earned is a lot more tricky than you’d imagined. Not to worry, that’s where a budget for 2021 comes into play.
As we head into the oncoming year, a lot of us are planning our business evaluation and the budget for new year. While this is a normal process that all businesses go through, 2020 has been anything but ordinary. Although it has been challenging for many, we are in a great position to make changes that can result in a profitable 2021.
In this week’s blog, we will discuss how to make the most of the recent changes we’ve been experiencing. The goal is to get at least some benefit from the disaster that was 2020.
The Office of Today
Deciding how much office space you need has been relatively easy in years past. Nowadays, many businesses find that the amount of office space they require to house their employees is now more than they once needed.
Remote work has become increasingly popular over the past few years. And with 2020 disrupting the entire workplace dynamic, many companies that put remote work on hold found themselves forced to move quickly. Once the pandemic subsides, some companies will have their employees return to the office, while others may find that it’s best to keep them working from home. If you find yourself in the latter situation, you’ll probably need to downsize your current office space. As a result, you may benefit from lower overhead costs.
On the other hand, if you find that you need the same office space as before, use the economic downturn to your advantage. Commercial spaces are emptying rapidly, so you may have the opportunity to negotiate lower monthly rent. You’re most likely going to get much better terms now than at any time in the past.
Re–evaluate Your Staff
Sadly, many companies found themselves having to downsize to stay afloat this year. As things get better, you may find yourself rehiring laid-off employees. However, you may only need a limited staff for certain projects without hiring full-time employees.
If that’s the case for you, you may consider hiring freelance or contract workers. Since these employees typically require less in terms of benefits, insurance, 401k, and other costs, you’ll be able to control your 2021 budget. Plus, if you only need them for a few days or weeks for a specific project, you can bring them aboard as needed.
If you plan to use full-time employees, consider who needs to be in the office and who will work from home. Workers who don’t use your equipment and office space will cost you less in the long run while still giving you the same results. If you haven’t tried it, you may be surprised what you can do with a remote workforce.
Get Your Tech On
Not only has the average office space changed this year but so has the showroom! 2020 has been a banner year for online purchases across every industry. Regardless of your product, you might find that this is the time to move your sales force to a completely digital platform.
Programs such as Zoom and Microsoft Teams can be more than just a tool to communicate with your employees. Why rush to face-to-face meetings when you can hop on your laptop from anywhere? Not only is this a safer way to do the job, but you also save quite a bit of money and transportation costs — especially if your sales force travels to different cities or countries.
One of the best parts about being environmentally conscious is that it often saves you money. Also, if you move towards greener processes within your workplace it could result in more wiggle room in your 2021 budget. More than ever, people are choosing to work for companies that work toward a smaller carbon footprint. Think about that as you make decisions regarding your business over the next year.
Ask your staff, is the equipment that you use as efficient as possible? Can you choose a vendor with the same values as your company when it comes to environmental issues? Are the materials that you use (think printing and packaging) reflective of minimal waste? More and more, customers will choose to buy from environmentally friendly companies.
No one expected the disastrous year that we had in 2020. Perhaps, way back in January, many of you were looking forward to the best year of your company’s history. Don’t feel defeated — this was due to factors out of your control. Many small businesses went belly-up this year, so celebrate the fact that you are still hanging on.
As we plan for our 2021 budget, we find ourselves in a position where we want to be more cautious than before. Some of us face fewer resources and an unclear sense of when things will get better. Regarding the pandemic, we’re sure all of us can’t wait for it to end.
One of the most significant expenses to consider in business is technology. If you find yourself unable to budget and plan for future expenses with your IT needs, give us a call today. As a managed service provider, we will have our team of professionals go over your particular needs and help you maximize your profits well into the new year!