If you were looking to purchase expensive equipment or upgrades, this might not be the best time. Unless they are absolutely necessary to keep your business running, put off any large expenses until you can comfortably afford them.
If you do need them, look at corporate secondhand sales for a better bargain.
However, don’t cut back too much. While it may be tempting to lay off your employees to cut costs, this should be a last resort. Having less employees does mean less expense, but it also means a reduced workforce. This can lead to overworked employees which makes for slower services and unhappy customers.
If necessary, you can also talk to your creditors to tell them you are re-evaluating your business and ask to renegotiate your loan and debt payment. While an economic slowdown is a challenging time for all businesses, if you can keep your debt and expenses manageable, your business will continue to grow from strength to strength.
This article is brought to you by CIMB as part of our ongoing efforts to raise the level of financial literacy among Malaysians. Financial knowledge and understanding are key to making well-informed and meaningful financial decisions towards positively improving welfare and well-being of communities. This is one of our many efforts to achieve CIMB’s purpose of advancing customers and society.
