You would be surprised at how many businesses fail because they can’t keep up with their overheads. From rent, wages and utilities to name a few, a business, especially with a small profit margin, can often find themselves quickly overwhelmed and before they know it, sunk. However, it doesn’t always have to end this way. Many new, inexperienced businesses are generally not familiar with changes they can make to improve their situation before it is too late, so see below some ways you can reduce your overheads.
Invest a little to save a lot
A big financial burden for a business is usually the labour, and even more so when the job role is becoming more obsolete. While it may sound harsh, it is a fact that many jobs today are being, or are in danger of becoming autonomous. From taxi drivers to even some aspects of accountancy, these jobs are slowly being taken over by technology in the form of autonomous cars and intelligent accounting systems. While these are examples in their early stages, there is some technology you can readily purchase and implement that removes the need for labour in some tasks, and replaces it with automation. An example of this would be visitor management systems: the need for a receptionist to meet and greet guests is drastically reduced, as such a system can allow entry into a building, all the way to meeting rooms for pre-verified guests. Implementing such as system currently is not all that expensive, but it could certainly save a lot of money through efficiencies and removal of wages to be paid.
While you may often need to call upon a professional to conduct repairs or other skilled work, with a bit of research, you would often be able to undertake much of this yourself. Save money on a cleaner by having a routa of when employees take turns to clean the office, or invest one time in accounting or bookkeeping software instead of keeping an expensive accountant on retainer. Obviously, there will be limitations on what you could realistically and safely undertake yourself, but use your educated judgement on deciding what you can do yourself and what can be outsourced.
Often, you don’t have to move very far to get a much better deal on office space. Consider if you really need an address at a glamourous city-centre location, or if the business could do just as well moving a little further out. Rent is often not cheap, and your savings over time by moving could add up to the point where you are in a better position to put money back into the business. Examine the long-term benefits of moving location, which could include a larger space for a lower rent. Not only would this improve your cashflow in the short-term, but it could put you in a better position for future expansion in the long-term.
Reduce your paper use
You don’t really need to be printing out every document you come across do you? By reducing your paper use, you could save on a multitude of areas such as printer refills and maintenance, electricity and paper waste; plus you’ll be doing your bit for the environment–a CSR planner’s dream!