4 ways to reduce your business overhead costs
Billede af Steve Buissinne fra Pixabay
When you’re an entrepreneur, your main goal is to grow your business and maximize your profits. But running a company is expensive. You have a huge amount of overhead costs to contend with, all of which chip away at your profit margins and impact upon your bottom line.
In order to have a successful business, you need to only be making money, but also saving it wherever you can. And your overheads are the best way to do this. Overheads are the indirect costs that come with running a business, and include everything from energy bills and office rent payments to staff wages and commercial cleaning costs. Tackling these overheads in the early stages of your business is the best way to avoid cash flow issues and keep your accounts in the green.
To get you started, here are four ways to reduce your business overhead costs.
Hire an accountant
You are a business owner, not an accountant. Most entrepreneurs find themselves wearing many hats when setting up a company. For example, as well as growing your business, you may also be tackling the marketing, sales, and even building your own website. But your finances are best left to the professionals. You might think that bookkeeping requires nothing more than a simple spreadsheet, but an accountant knows their stuff. They will be able to identify areas where you are spending too much on your overheads and opportunities to reduce your expenses. A good accountant should always save you more money than it costs to employ them.
Change your office space
Is your office the right size for your company? If you only have a few people working for you, yet tons of empty space then you’re probably paying far more than you need to on rent and utilities. Consider switching to a smaller office so you’ll end up paying less. Remember that buying a property is ultimately then renting cheaper in the long run so think about the big picture when choosing a location.
Employ an efficient team
One of the biggest expenses for any company is staff, so the last thing you want is an employee that isn’t pulling their weight. Downsizing a team always risks dampening staff morale and productivity, so the best thing you can do is to make smarter hiring decisions in the first place. Rather than hiring multiple employees for individual jobs, see if you can combine roles by filling them with employees who have a variety of skills and backgrounds.
Be more eco-friendly
Climate change is the big topic on everyone’s lips at the moment, and many companies are making huge efforts to be more sustainable going forward. But going green isn’t just good for the planet; it can also save you a great deal of money in the long run. Slash your utility bills by being more conservative with water and electricity usage. Consider letting employees adopt a hybrid workin g structure, meaning they work from home a few days a week. Another option is to go completely paperless, using only digital documents and eliminating printing and paper costs entirely.
