The Bottom Line: Property Costs Tightening
Income less costs. It’s pretty simple. And there are two ways to keep the equation looking healthy:
- Increase the income or;
- Reduce the costs.
In the current unforeseen circumstances, few are banking on income rising, and sadly it is the other side of the equation that remains manageable.
Keeping costs down is the only way to keep your business viable and give it the potential to re-surge once the crisis is contained. This could be six weeks, it could be six months, or it could be longer.
One of the largest costs to business is office space, whether it is owned or leased. In addition to the square-metre cost, there are on-costs including utilities, maintenance and cleaning. Optimising space – achieving the sweet spot where the staff you have work comfortably and effectively, recognising the nature of individual roles and the real need to manage the office in an environment like now – is key.
Until the pressure is seriously focused on costs and how can we reduce the bottom line, few companies step back and make this objective assessment – or realise the opportunities that can result.
In the midst of the many tough decisions, businesses are forced to make right now, you can soften the economic blow of COVID-19 by:
- Some back-to-basics analysis,
- Some lateral thinking on effective down-scaling, and;
- Some firm negotiation with landlords and sub-tenants.
CRPCG can help you every step of the way – none of us have seen a crisis like this before, but at CRCPG we know how to capitalise on a time when the cards are not all in the property-owners’ hands.