Your business may incur a seemingly minor cost here and there, but over time these costs add up. Suddenly, your overhead is way higher than it should be. The current economy is rough, so it is prudent for your business to reduce overhead costs wherever possible. There are a myriad of clever ways to accomplish this. Consider some of the following suggestions
1. Use Office Space Wisely
Look at your office’s physical space, and analyze how well it’s being used. If you have extra space, maybe you can share your office with another, non-competing business. If you are adding staff, consider reconfiguring your floor plan to be most efficient. Try wall partitions to make more efficient use of space, while still giving your employees a sense of privacy and comfort in the work space.
2. VPN Technology
A VPN sets up a private Internet connection that uses encryption and authentication to protect your company’s data. This allows your employees to work remotely. By allowing employees to work remotely, you save on office space, monthly utilities, parking, and many other related expenses. As an alternative to a VPN consider Microsoft’s Remote Desktop that is installed with every version of windows 7 or XP.
3. Freeware
Free software is readily available online and can save you hundreds of dollars on expensive programs. Try Google Documents for basic formatting, spreadsheet, and file sharing needs. Microsoft Live Office Space offers similar functions.
4. Advertising Costs
Pay-per-click advertising can save you money by making your marketing program more efficient. You only pay for people who show enough interest in your message to click through to your company’s website.
5. Trim Travel Costs
Planning ahead is still the best way to save on airfare. The longer you wait to book your flight, the higher the price goes. Also, compare rates! It’s possible to save hundreds of dollars simply by checking different travel sites.
6. Talk to Your Employees
On the “frontlines” of your business, employees often know best where your business is wasting money. Enlist their help in your overhead reduction drive. Offer rewards for any ideas that work.
7. Avoid Bookkeeping Errors
The bigger your business becomes, the more complicated your bookkeeping becomes. Migrating to an online bookkeeping solution will help ensure your accounts payable and receivable are accurately managed, avoiding any surplus cost.
8. Reduce Waste
The amount of paper used up in an office is phenomenal. Consider moving to a paperless solution – from something as simple as emailing a PDF instead of printing the document, to a more substantial commitment such as outsourcing your bookkeeping.
9. Lower Energy Costs
An office that is the right size for your needs and no bigger means you will not overspend on utilities such as gas and electricity. Utility bills are a significant part of overhead costs, so it’s worth it to do whatever you can to lower them. Call your utility providers in search of the best deals and/or better rates. Turn the thermostat down a degree or two. For more advice on reducing energy costs, read HERE.
10. Remember, It’s WHO You Know
Don’t forget about family and friends when it comes to acquiring a product or service you need. They may be willing to give you a reduced rate.
