Do you know where you should and shouldn't cut costs, especially during Covid-19?
Revenue generating vs. Non-revenue generating expenses.
We understand times are tough, especially in the events industry and it's resulting in most, if not all, upcoming events being cancelled. So this means we're all trying to find ways to cut cost right? Do you know what things are essential to keep your business running and your customers that you do have happy? How are you going to keep relevant and in peoples minds when this all ends and they need to suddenly book that wedding, party, etc that their other vendors cancelled for? That will happen and you need to keep ahead of your competition. So lets look at some things wer recommend keeping and some ways to keep your business positive:
1) Advertising: Have you looked to see how many of your competitors have completely cut off their advertising budget? Seriously you can do that on facebook: https://www.facebook.com/ads/library/ Did you know that the FB rates are like DIRT cheap right now because of that? My CTR has literally halved in the last week. Ad's fall under a revenue generating expense as long as your ROI is good by correctly set ads.
Side note: look at what some of the large companies you love are running for ads still.
2) Staff: This has two edges because obviously you want to keep good staff, but need a way to pay them. You may need to furlough your staff doing events thinking that they can't bring in money since that's a non-revenue generating position. But what if you could keep your staff and turn them into a revenue generating position? How many of them would make an AWESOME social media expert for you? They all want to be influencers right? Make them your brand influencer! Interact, interact, interact! Have someone who's good at sales? Perfect they can keep up sales tactics and work on vendor and venue outreach. Those positions can all lead to revenue! Maybe it's time to diversify and you can come up with some awesome way for your staff to do some side work.
3) Customer interaction: So this is a big one. How are you going to let your costumers still book your service? Yes a CRM is a big expense, but there's a good reason for that. It controls your interaction with your customer. Which where does most, if not all, of your income come from? YOUR CUSTOMERS! So if you cancel your CRM it'll do two things: It'll make it so you can't take a new booking or your don't answer fast enough for them, or you miss something they want. What about up-sells to your current customers? Their event can be a little ways off so they might not see an issue with spending another $100 still!
But what happens if you cancel your CRM? Now your customers worry; "OMG I can't access my booking! Are they closing down? I need them to refund me before they do!" That is what we're trying to avoid right? You want people to think that not only is it business as usual, but you're thriving so where are you going to go? No where!
Did you know that the SBA actually has an article (and a ton of help) on what to do during an economic downturn? Check it out here.