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4. Controlling Costs and Strategic Investment

Small and medium-sized businesses (SMBs) are working hard to adapt to the current situation. They’re making strategic operational choices, including cutting costs, in order to invest in the long term success of their business. Though a majority of SMBs continue to be hit with revenue losses since the start of the COVID-19 crisis, they are making intentional choices about cost cutting. Two thirds (66%) of those who cut costs in some way are confident these decisions will help them weather the pandemic.
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TriNet | Harris Flash Polls
Episode 4|5 min
Published: April 24, 2020
  • ### 67% of small business leaders have had to cut down on payroll costs, including: * Reducing employee hours (46%) * Taking a reduced salary for themselves (40%) * Laying off employees (26%) * Furloughing employees (13%)
  • ### 66% have cut costs in other ways not related to payroll, including: * Reducing marketing/advertising spend (34%) * 32% have worked with creditors to reduce immediate obligations, such as asking for a lease/rent/mortgage deferral (14%), renegotiating terms/contracts (16%), or asking for discounts from vendors/suppliers (16%) * Canceling under-used or unused services (29%) * Reducing the amount of inventory being held/carried (19%)
  • ### 26% have changed sales targets.
  • ###### **INVESTING IN INFRASTRUCTURE** * ### 46% increased infrastructure to be more virtual, online, or contact-less.
  • ###### **INVESTING IN EMPLOYEES** * ### 37% are continuing to offer health insurance benefits to laid off or furloughed employees. * ### 37% are offering pay to employees who are not currently working.
  • ###### **INVESTING IN CUSTOMERS AND COMMUNITY** * ### 37% are donating to or sponsoring local causes for COVID-19 relief(15% are donating to national relief) * ### 36% are offering assistance to customers(such as free services, discounts, delayed/forgiven payments, waiving fees, etc.). * ### 14% increased marketing or advertising spend.

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