International Webinar 2022 - Recession Proof business Strategies for 2023 – Part 14

Malaysian academics explained that one way to withstand a recession is to cut corporate spending. Fixed expenses, which include things like mortgage payments, insurance premiums, and subscription payments, are easy to budget for because they generally remain constant throughout the year. While people tend to think there is no way to lower fixed costs, with a little effort and research, most of these costs can be reduced. Here are five ways to cut a company's fixed costs.


The first way is to review refinancing. Mortgage payments take up the lion's share of most monthly budgets. Fortunately, the company can lower those payments by refinancing the company mortgage to a lower interest rate. Refinancing will cost the company, but the company can incorporate closing costs and other costs into the refinance loan. Plus, the money the company saves each month must more than offset these costs. Refinancing is a particularly smart move to make in an environment with reduced rates or if the company's credit has improved greatly since the company opened up for a mortgage.


The next step to cutting corporate expenses is to lower corporate property taxes. Taxes may be inevitable, but they are not just imposed. Companies may be able to lower property taxes by challenging municipal assessments of company property. Each city will have its own guidelines for following this process, but eventually the company will agree to revalue company property in hopes of proving that it is less than the city's valuation. This move could drastically lower the company's property tax bill; however, if the company has made improvements to company property, it may be valued at a higher value, which can increase company taxes.


Furthermore the company can change the company's auto insurance policy to cut the company's fixed expenses. If the company has had the same policy for several years, talk to a company representative about lowering the company's monthly premium. By highlighting company loyalty and having an excellent driving record, companies may be able to get a lower price quote. Companies may also consider increasing their deductibles to get lower monthly premiums. If the insurance company won't work with, it may be time to find a provider that will.


Another way to cut fixed expenses is to consolidate debt. If a company carries a large amount of debt, its minimum monthly payments can be a huge drain on the company's budget. In addition, thanks to the high interest rates it may incur, the company may feel that the debt will not be resolved soon. Therefore, it is better if the debt is made one to one debt provider. In this way, the cost of debt will be single and lower than if the debt is separated into several financial services.


Another fixed expense that most people pay mindlessly every month is subscriptions. Take some time to review the company's monthly subscription and get rid of those you don't really need. In this way, the company's expenses can be reduced and the company will survive in the face of a recession.


The above material was presented by a presenter from Malaysia in an international webinar held by STEKOM University in collaboration with Universities from Malaysia, PRC and various other parties. The title of the presentation brought by the presenter from Malaysia was "Recession-proof business strategies 2023: Malaysia's Economy Perspective." The presenter's name is Hafizah Abdul Rahim who is a senior lecturer and research fellow at the center of excellence for social innovation and sustainability, faculty of business and communication at Universiti Malaysia Perlis.


This international webinar activity is part of the implementation of STEKOM University's commitment to increase various international activities. This was done in order to realize the vision to become an international-class university. Various international activities carried out by STEKOM University continue from year to year. There are international activities that are sustainable and there are also some international activities that are not sustainable. All types of international activities are accommodated and regulated by the International department of STEKOM University.