5 Easy Ways to Lower Your Overhead
Less Overhead = Less Stress
Owning a business can be challenging and expensive, but some of those expenses may be unnecessary. Try some of these practical ways to lower overhead costs and relieve some of those business-related stressors.
Evaluate Your Building Space
Some of the biggest overhead expenses your business may have are for the actual building in which you operate. Things like rent, utilities, and even property insurance can send your monthly expenses through the roof. Evaluating your building’s location and efficiency can help you narrow down some cost-saving strategies.
- Negotiate a more affordable monthly rent with the landlord.
- Ask yourself if your location makes good financial sense. Consider relocating to a smaller office or a more affordable location.
- Decide if you even need a storefront at all; you can completely eliminate rent costs by telecommuting or working from home.
- Shop around for better insurance rates.
- Check your options for subleasing your space when you are not doing business.
Eliminate financial “waste” by ditching costly upkeep and streamlining processes.
- Go “green” by going paperless, installing a smart programmable thermostat, turning off all electronics when not in use, and checking for lower internet service plans.
- Get rid of your phone altogether and move communications through web-based options such as Google Voice and Skype.
- Replace delivery and corporate vehicles with more fuel-efficient and hybrid models or outsource your delivery and shipping.
- Maintain your equipment and building in-house by hiring a mechanic or doing repairs and cleaning yourself.
- Buy “gently” used office furniture from large corporate closeout sales.
Skip Traditional Marketing
Traditional advertising is a luxury. Skip the cost of traditional advertising by taking advantage of internet marketing and advertising options.
- Advertise on social media. Social media ads are a fraction of the price and catchy memes are easy to create.
- Make videos. Youtube allows you to upload videos for free that you can embed on your webpages.
- Build your fan base internally. Devote employee time to reaching out and building a fanbase through your website who will then share your memes and videos with their peers.
Hire and Inspire Good Employees
Make smart decisions when hiring to get the most bang for your buck.
- Find employees with multiple strengths. Having a staff member who can make sales calls, manage your website, and troubleshoot technical problems is like having 3 employees in one.
- Hire adaptable employees who are willing to learn. Employees who are able to learn new skills through professional development opportunities will make them even more valuable to your company.
- Utilize the knowledge of your employees to identify other ways you can save money.
- Offer incentives and rewards for cost-saving proposals and initiatives to encourage employees to strive for efficiency.
Outsource Expensive Services
Outsourcing costly duties to a company of professionals can save you time, money, and headaches.
- Hire a virtual assistant on an ad hoc basis. This allows you to access specialized services, negotiate contract prices, and save on salary and benefits.
- Eliminate the need for a large warehouse by working with a company that does all of your order fulfillment and shipping for you.
- Outsource repetitive and disliked tasks for a small price which will allow your full-time staff to focus on more important and meaningful work.
These 5 tips can help you save money on overhead costs with a few practical solutions and free up finances to grow your business. Contact us today to learn how we can help you improve your profitability.