What are your options when budget cuts are imposed?
Plenty but it does depend to some extent on the circumstances.
Here is a few pointers
- Spend only on activities that support your brand and generate measureable results
- Postpone lower priority programmes to the next budget year
- Outsource non-strategic functions at lower costs
- Initiate monthly cashflow and accruals analyses to protect from nasty surprises
- Re-negotiate supplier contracts re-align the staff complement to focus on key must do functions
- Remix promotional spend to focus on higher response rate activities review sponsorships, donations and csr commitments investigate government grant possibilities for R&D and promotion
- Re-negotiate alliance partners’ co-operative promotional programme terms
- Develop freegoods programmes to leverage publicity to replace reduced media spend
- Involve external agency team members to deliver more output lock-in or hedge cogs purchasing contracts
- Do nothing unless it saves money or makes money
- Consider using lower cost interns from university graduate programmes for short-term projects