- Maintain business fundamentals, while looking for better ways of doing things
- Reducing costs may be a powerful lever you can use to keep your business healthy and resilient.
Reducing pressure and boosting resilience
When business is buoyant, it’s easy to absorb the long-term financial impact of building additional costs into your business. However, in a time of crisis accumulated inefficiencies may begin to bite.
Reducing costs may be a powerful lever you can pull to take pressure off your business and increase the likelihood that you’ll emerge from the current crisis in strong form.
Here are four areas to review right now.
1. Staff costs
Staff costs are overwhelmingly the largest expense category for most agencies, so ensuring that your staff are working effectively is critical.
- Do you have plans in place for staff who may be inactive during the crisis? How can you better point them to activities that will benefit the business in the long term?
- Have you ensured that administrative and support staff are focused on higher impact or priority tasks?
- Are there any ways to review current processes and identify which of those may be improved with the support of technology?
2. Occupancy costs
Are you familiar with federal and state government measures to support commercial tenants?
3. Franchises and subscriptions
Some franchisors have committed to supporting their agencies through the crisis, so this could be a good time to discuss your situation.
4. Personal budgets
It may be beneficial to review your personal budgets, and obtain guidance on the various initiatives that may be available to you.
Read more about government measures to support commercial tenants:
|Federal government||Read more|
|New South Wales||Read more|
|Northern Territory||Read more|
|South Australia||Read more|
|Western Australia||Read more|
How Macquarie can help
The Macquarie Real Estate team is here to support you throughout the COVID-19 crisis, with personalised support. To find out more, contact your Macquarie Relationship Manager, call 1800 442 370, or visit macquarie.com.au/business-banking/real-estate-industry.html