The day-to-day cost of running your business can work out to be far more expensive than it should or needs to be – but there are simple ways to reduce your overhead costs.
From rethinking the space you work in, to auditing your stationery order you can cut costs while pushing your business forward. Here are our 4 top tips for reducing the overhead costs of your business.
1. Think about your work space
The cost of renting office space can be a huge drain on your business expenses. If working from an office is absolutely necessary, why not shop around for appropriate space close by with lower rates of rent? While it might be a big business decision to make, it might be worth reconsidering if you need a permanent office space at all?
Of course, this is all dependent on your business type, culture and if the work you do can be carried out away from an office – but remote working is quickly emerging as the ‘new normal’. By way of compromise, you could consider utilizing a local coworking space.
2. Review supply orders
If getting rid of your office space entirely isn’t something you could even begin to consider, then it’s time to have a look at cost-cutting within your office. Have you been putting in the same repeat order of office supplies for years without reviewing what you’re buying? It’s an easy thing to do – especially when your time is consumed with keeping clients happy and producing the best work possible. However, this is an essential part of reducing overhead costs – it’s imperative that you regularly review your orders.
For instance, have you been ordering the same amount and brand of ink and toner cartridge since you bought your printer? If the answer is yes, branded ink and toner is notoriously expensive and you can actually buy compatible versions from reputable suppliers that work in exactly the same way. It’s little adjustments such as this that could make all the difference.
3. Reevaluate your accounting
This is something that can absolutely work both ways. You need to figure out whether there’s more value in spending your time doing client work or can you spare some time/do you have the right amount of knowledge to do your own accounting?
If you have an accountant and incur any penalties due to errors, they will usually pay those on your behalf. Accountants and professionals in the tax field are also more likely to find things you may have overlooked. Whichever way you choose to play it, you will need to calculate what will reduce your overheads the most over time.
4. Look at your marketing expenditure
There are many different ways to reduce your sales and marketing costs. You’ll need to begin by doing an audit of all your current outgoings related to marketing and figure out what is the most effective method. There may be regular marketing expenses you’ve been paying for a really long time that no longer make sense and don’t result in generating you revenue.
Have you been paying for printed materials that remain in cardboard boxes tucked under your desk? Does that radio advert still pay off? There’s lots you can look at and strip away the things that might cost a lot and yet not yield any valuable business.
You’ll always be able to find ways to cut costs when you regularly reevaluate expenditure – hopefully, these tips set you on the path to successfully reducing your overheads.