We’re always looking for smart ways to save money as business owners, and one of the best ways to save is by cutting your costs in the first place. There are a multitude of ways to reduce overhead in small business, but if you don’t want to dismantle your business just to save a few bucks, it can seem like a monumental undertaking. There are some fast, easy ways to reduce overhead that you can implement right away.
The Quickest Ways to Reduce Overhead
Check these out and start profiting more by spending less on your business!
1. Reduce staff overheads
If you’re paying staff to do things that could be outsourced more cost-effectively, it’s time to take those savings by reducing your full-time staff. Outsourcing agencies and providers like Conversational (virtual receptionists and virtual assistants) provide qualified staff that work for your business at a fraction of the cost of full-time employees. This can help you drastically reduce your overhead, and it’s one of the top money savers on this list.
2. Adapt the way you travel
If you travel a lot for business, it’s time to rethink the way you’ve been doing it. If it’s absolutely necessary that you travel to other locations, look for the best deals you can find on flights, rental cars, and hotel rooms. Make sure you’re taking the proper tax breaks as well. If you find that it’s not necessary for you to physically be in another location to meet with someone else, try teleconferencing over Skype to keep in touch instead of driving out. Even some types of inspections and checks can be done this way. You can save a lot of money by traveling less or more cost-effectively.
3. Move out of the office
This is easily one of the best and most effective ways to reduce overhead. Moving out of the office is a serious decision and one that shouldn’t be taken lightly, but it’s almost always advantageous for the business owner. You’ll save a ton of money by working from home or a coworking space instead of renting or leasing commercial space for your office.
If you’ve already reduced your staff and are outsourcing or working with virtual staff now, you’ll have more reason to consider downsizing and transitioning to a home office instead. Without the need for extra square footage for other employees, you will be able to work comfortably from home until the point where your business grows and requires a larger space.
4. Go paperless
Paper is still a staple in most offices, but we’ve already seen that it’s going the way of the buffalo. Paper is costly, so speeding up the process and going paperless now can save you a lot of money. Going paperless doesn’t have to be difficult. Make a list of the ways your office uses paper – mailing, billing, client interactions, files, memos, documents, contracts, etc. – and come up with a plan for going digital instead. You’ll need to scan your existing files and documents so your entire system will begin functioning online.