Is it better to spend up or cut and save during the lockdown?

It’s the classic business dilemma; do we save our nuts like squirrels to get through the winter, or do we plant the seeds and prepare for a good harvest?

Those who argue for ‘cut and save’ would say:

  • Keep the money you have in reserve

  • Reduce all costs

  • Defer all big expenditure

  • Cut all non-essential spending

  • Clear out your inventory

  • Sell unused assets

  • Cut staff hours

  • Then use cheaper staff

  • Find lower cost supply chain alternatives. 

Then there are others who argue the opposite:

  • Increase advertising and promotion

  • Invest in marketing and sales

  • Increase brand awareness

  • Improve your website and online presence

  • Always keep promoting

  • Look for cost effective mediums

  • Continue to engage with your customers

  • Encourage loyalty purchases

  • Develop new products or services

  • Engage with your supply chain

  • Improve your online offering

  • Look for another business to buy

  • Buy specific assets

  • Find profitable add-ons

  • Seek out lower cost providers

The question really is, how will you position yourself to come out the other side?

Be smart during this time of lockdown and restrictions. Be on the lookout for new opportunities, to grow, develop and improve.

Let me know if you need a hand

Peter