For many small businesses, it’s important to do whatever you can to keep your overhead costs low. Especially if you’re not having much money coming in yet, the lower your overhead costs are, the longer your business will be able to stay afloat until you’re able to start making a real profit.
If you’re needing to find some ways to reduce your overhead costs, here are three tips for saving money on business overhead costs.
Conserve Utility Costs
When your business is run out of an office or other workspace, one of your biggest overhead costs will be paying for your monthly utility bills. Luckily, there are quite a few things you can do to save in this area.
According to Dave Llorens, a contributor to Business.com, one of the best ways to reduce utility costs is to simply use less. If you’re able to use minimal lighting and turn off other electronics and appliances when they’re not in use, you could save a lot on your utility costs. Additionally, if you can find a way to use a single item for multiple purposes, like using the hot air that comes off your air cooled chiller to heat your workspace, you may be able to save even more money on utility costs.
Choose The Right Employees
Another big overhead cost is what you pay your employees. Because of this, it’s vital that you make the right hiring choices so you’re not wasting any money in this area.
To ensure that you hire the right employees from the start, Tucker Cummings, a contributor to LifeHack.org, recommends that you try to hire employees that have multiple strengths. Especially when your business is young, hiring someone who can take on multiple roles can save you from having to hire multiple employees that you may not need on a full-time basis.
Only Pay For Space You’re Using
When you work with the remote team, you don’t have to pay for the infrastructure. However, you would be paying for the software and other data management services like web hosting, cloud computing, ERMs, and CRMs for remote work monitoring of your team that you built online at a minimal cost.
As far as what you’re paying for rent or lease each month, it’s helpful to keep this monthly cost as low as possible while still giving your business the room it needs to function.
To help with this, Susan Ward, a contributor to The Balance Small Business, recommends that you really look at the current space you have and see if you could get by with less space. If you can, that’s a great way to reduce some of your monthly overhead since smaller properties will usually charge you less money to rent them. So if you have a little more room than you need or can stand to use less space by becoming better organized, this could be well worth it to you.
If you’re wanting to reduce your overhead costs, consider using the tips mentioned above to help you find ways to do so.