Finding ways to reduce your business overhead is always a good thing. Whenever you can save money and still move forward, it can help your business thrive. Profitability isn’t just about how much is coming in, but its also about how much is going out. Here are five tips you can use to help reduce the overhead of your business:
1. Look at Your True Needs
Often, businesses can take a hard look at what they need and easily find a few things to eliminate. Sometimes, you don’t need everything you have worked into your budget.
Making a list of the things you really need will help you see what’s essential and what’s not. Just like a family might do, you should take the things you need and work them into your budget first. Once you know what you need, you can better balance the things you want for your business that are not 100% essential to your success.
2. Take Advantage of Free Advertising
There are so many ways to use free or very cheap advertising today. You can use social media to spread the word and a blog to get news out about your company. Both of these together may not cost you very much, if anything at all.
When you choose to try free advertising, you may find that you can reduce the money you’re spending on traditional advertising. Replacing some of your paid advertising methods with cheaper or free methods can really help reduce your overhead. However, you want to make sure you track all your marketing to ensure you’re getting the right results and putting money into what is working best.
3. Reduce or Eliminate the use of Paper
Its not easy to get rid of paper, but it can save you a ton of cash. Many businesses can go paperless in many different ways including:
- Eliminating interoffice memos and making them emails.
- Using professional scanning companies or a scanner to create CDs, DVDs or other virtual files instead of making copies for clients and employees.
- Using the cloud to store documents and give clients, employees and partners access, when necessary.
- Using online e-signature services for contracts instead of actual paper contracts.
- Switching clients to paperless billing with a sophisticated email system.
There are many other ways to eliminate paper and save money. Look at how much you spend on paper every single month and find a way to reduce your use and lower your overhead.
4. Go Virtual
The biggest trend that can really help you reduce your overhead is going virtual. A virtual office can help you save all kinds of cash and can provide your employees with the flexibility of working from home. With technology, such as virtual receptionists, online conference calling and video chat, its easier than ever to eliminate your physical office.
Even if you cannot completely eliminate your physical location, using virtual receptionists can certainly save you money compared to a traditional receptionist. This may also allow you to move from the space you’re in today to a smaller space with less overhead.
5. Avoid Overworking Employees and Yourself
As a business owner, it can be tempting to eliminate smaller jobs and overwork other employees to save money. However, when somebody works more than 40 hours per week, they tend to provide a lower quality of work. Its better to hire employees on a part-time basis to fill in the gaps than working more than 40 hours a week yourself.
If your company requires managers and lower level employers, finding a creative solution to keep your managers from working too much can provide higher quality work. When an employee doesn’t feel overworked, they will come in and put in a full shift of work instead of finding ways to get paid for doing little to nothing for part of the day.
These five tips can help you reduce your overhead and some of them may even help increase productivity. Its a hard balance to find because you do have to spend money to make money, in most cases. However, when you eliminate unnecessary expenses, you can build your bottom-line no matter the current size of your business.