8 Tips & Tricks to increase revenue whist cutting costs and improving your business

07 May 2020
Words Glenn Millar & Chenoa Daniel

8 Tips & Tricks to increase revenue whist cutting costs and improving your business

Last month we have seen the Centrelink website collapse with the strain of people trying to access information and benefits. While sole traders will be entitled to claim benefits, it could be worth looking into modifying or diversifying your service offering to continue operating your business instead. 

Even those who have always operated from home are finding that their work is drying up with clients closing up shop, cancelling events and so on. The impacts of social isolation are already having a considerable knock-on effect for suppliers of "non-essential" services. 

Whilst no one likes change, sometimes change is inevitable in the way we do business. Learning to adapt and change can set you apart from other business owners in your sector. Change and adapting to suit the current market can keep you afloat and your business can continue to flourish. 

This info comes from a variety of sources including several resident managers who we have spoken to in the past few weeks. Not all of you will be able to implement these measures, however, take from it what you can.

  1. Work with your committee to investigate how you can reduce fixed costs for the common areas. If you haven’t already done so, turn off your pool and spa heating and speak to your pool company to ‘winterise’ your pools which will save on chemical and maintenance costs. Committees and owners will see a lot of value in a resident manager who is proactive in dealing with the upkeep and reducing costs.
  2. Speak to your suppliers to see if you can reduce fixed costs such as Foxtel and internet. One enterprising manager negotiated a 70% reduction in the monthly charges. Look at the potential of embedded electricity schemes.
  3. One enterprising Resident Manager has offered to spring clean all units in the complex (short stay) at no cost to owners by utilising staff that will be afforded the JobKeeper payment. What a great way to earn “brownie points”.
  4. Another manager (good with a brush) has offered to repaint units in their complex for half the normal retail price. Out of 28 units in their complex, 6 owners have already taken them up on this – it’s income for the manager and a refresh for the unit - it’s a win-win both ways.
  5. Keep communicating with your past guests and future bookings. Your online presence has never been so critical. Utilise any funds still in your marketing account to refresh or update your website and social marketing. Remember your website is your window to the world and when we kick start again you need to be top of the list, reminding them why they need to stay with you when the time comes.
  6. Work with your committee to see if you can bring forward planned projects. Funds cannot be used for any other purposes or indeed transferred to the admin fund, so now is the time to look at building improvements to ensure your property is well presented to welcome guests again. 
  7. Keep up your ARAMA membership or if you are not a member and can afford to do so, please support them as they are critical to us during the current climate and beyond. Without the lobbying from ARAMA, our industry would not be as viable as it is. 
  8. Now is an ideal time to get your agreements topped up and to ensure you are gallery vie compliant. This will increase the value of your business as it’s going to be challenging times ahead for values. Furthermore you may wish to look at upgrading your licence to a full real estate licence to allow you to sell units in your complex and increase your earnings.

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