How to lower your overhead expenses in a small business
Overhead costs are inevitable as a business owner, and they may seem like an essential cost you can’t possibly cut. However, there are ways you can lower consumption and reduce costs. Some simple changes to your business and vehicle maintenance can help operations run more smoothly and affordably, leaving you in a better position to optimize your budget and grow. Consider these five options for lowering overhead costs in a business, no drastic feats or finesse required.
Boost your fleet management tactics
Reviewing a guide on fleet management can aid your cost reduction efforts as you’ll learn about how a fleet management platform can optimize your vehicles, improve your turnarounds, and lower operating costs across the board. You should also implement routine vehicle maintenance schedules that ensure your commercial vehicles are always in perfect condition. Pay attention to tire condition, fuel-efficiency, and vehicle alignment. When a vehicle needs a tune-up, get it sooner rather than later. This prevents unnecessary fuel waste and decreases the risk of mechanical failure or accidents from malfunction. One major expense fleet owners face is insurance, but you may be able to get a better deal by speaking to your provider. See what limits are absolutely mandatory and which riders you have that many cost more than they’re worth.
Winterproof your building
Running the heat at full blast in a building with cracks and loose seals is like trying to patch a leaky ship. Hire a professional to weatherproof your building, which includes applying caulk to any holes, gaps and cracks in the exterior and sealing door and window frames. You can also buy cheap weatherstripping rolls that fit under doors with large gaps at the bottom to prevent heat loss and draftiness. With a better insulated interior, you’ll be able to run both heating and air conditioning less to save on utility bills.
Get rid of paper waste
If your business still operates largely on paper, think about ways to efficiently go digital as much as possible. A paper memo on the boss’s desk could easily be sent through Slack or Google. In addition to saving on waste removal, you will also cut down on supply costs. To eliminate more paper from your business, use double-sided prints and copies by default and use smaller fonts to get more words per page. You can also switch to secure file sharing online instead of relying on traditional mail. This can also speed up the process of signing documents and filing them, which improves productivity and boosts customer satisfaction.
Shut down non-essentials after work
Anything that is plugged into an outlet draws power, even if it’s turned off. This means the suite of company computers lying dormant all weekend are all drawing power and costing you money with no one operating them. The same goes for desk lamps, lights and office equipment like printers and paper shredders. Unplugging after the workday ends, and especially for any prolonged periods such as holiday breaks, can shave some serious savings off your electric bill. These types of bills are an example of one of the things you need to expect when opening up a small business, but that does not mean that you need to be ok with how high they can get, just because they are expected in general.
Upgrade your thermostat
Smart thermostats do all the hard work for you. You can program them to run at a certain time, turn off when you want and moderate the temperature in different parts of the building throughout the day. Upgrading your thermostat, especially if it’s over 10 years old, can also save money simply by having better hardware and greater efficiency. Outdated thermostats are more likely to have false readings and cause your HVAC to run more than it has to.