COVID-19 has changed the way many businesses operate. Once the global pandemic ends and life returns to something approaching normal, business travel and transportation will once again become a factor in your business.
From a entrepreneur looking to raise capital and promote their new platform to a myriad of potential investors, through to the SME looking to win new contracts, business travel be difficult to budget for. The cost of travel has been on an upwards trajectory for years. It can often be difficult for a modern, small business and/or pre-revenue founder to cope with.
It’s time to delve a little into the reasons for why this is:
Numerous hidden costs
Business travel racks up a number of hidden costs. Due to their nature, you’re rarely going to see them coming, unless you have a lot of experience and plenty of time on your hands. So, during the planning process make sure you think about where your business is likely to take you, or employees during the period. Additionally, make sure you know the average cost of staying in the relevant locales.
At the same time, work out which hotels, or apartments are the best for your needs. For example, do the prices include breakfast, or WiFi, or service fee?
Which location is the most convenient for you?
Expensive to manage your own fleet
If you have a company fleet, you are likely happy to be able to offer the benefit to employees (and potential employees). Dependent upon your business, industry, or role it might even be deemed a tool of the trade. However, it’s expensive and difficult to manage when you’re a small business, and it is even harder to keep paying for in the long term if your business is in start-up mode.
After all, you’ll need to pay for insurance, management software, wraps, fuel, and general maintenance. So, if you’re not able to see viable and constant use for your own fleet of vehicles sometime on the horizon, it’s time to remove the cost.
Instead, you can move to fuel cards, where the business pays for the fuel used.
Alternatively, you could hire individual vehicles, as and when you need them. In the long run, for the majority of tech-based businesses this will save a lot of money. For example, if you are in Sydney, Australia, get in touch with local service providers like Sydney Ute Van Hire, to service your organisations fleet needs. You might not even be able to afford to manage a fleet of executive-friendly vehicles, but you can certainly hire a car.
Travel cuts productivity
The more time you spend travelling and planning the trips the less you’re going to get to grow your business. When attempting to book a trip, and arranging flights, trains, and negotiating hotel bookings, there may be moments where you miss deadlines, or where your employees do so too. The cost and distraction can be significant, so it’s important to keep these planning times short and to the point. Even better, plan them as a company. The key is effective time management.
If you’re a business owner that wants to find ways to cut more unnecessary costs, make sure you remember the points above.