Running a business costs a lot of money, and a large sum of that money is often funnelled towards overhead costs. While there is no way to completely eliminate these costs, there are numerous things that business owners can do in order to cut down on costs significantly. In today’s article, we have a look at 6 simple ways to cut office overheads that will allow you to save big bucks, so read on to find out more!
1. Go Eco-Friendly
One of the best ways to cut down on expenses as a business is to embrace the concept of going eco-friendly. One example would be to purchase recycled office paper instead of brand new virgin paper. In fact, recycled paper tends to have a higher opacity than virgin paper, allowing you to use thinner, less expensive sheets that are lightweight and can even reduce postage costs. Other eco-friendly office ideas include investing in office equipment such as Epson ECO Tank Printers that are cartridge free and deliver high quality, hassle-free printing at a low cost.
2. Embrace Remote Working
By embracing remote working, business owners are able to save thousands of dollars a year on office space. In fact, when the pandemic reared its ugly head in early 2020, 85% of businesses were forced into having to embrace remote working even when it initially seemed like an impossible task. By renting small offices for just 2 out of 5 days, business owners are able to save up to 60% on office rental costs. As an added bonus, a Stanford study found that remote workers are up to 15% more productive than their in-office counterparts, making remote working one of the smartest solutions for any business that is trying to cut down on costs and boost productivity levels.
3. Evaluate Your Needs
One of the best pieces of advice when it comes to figuring out how you can cut down on office overheads is to take a good look around you. How many items or services in the office space do you truly need, and which ones do you think you could comfortably do without? Things such as business cards, brochures and leaflets are all items that can be done without thanks to the power of social media platforms and channels. Whatever the case, you really shouldn’t be paying for anything you don’t need, whether it be office equipment, stationery or office space.
4. Don’t Hire Just Anyone
Without a doubt, wages are up there when it comes to the bulk of office overheads, which is why trimming down your team and ensuring that you have the right people on the job is so important. Rather than hiring a large number of people who only excel at one or two tasks, we recommend making smarter hiring decisions and choosing team members who can offer the business as much value as possible. Look for employees who possess a wide variety of skills and backgrounds, and invest in training and development so that you can fill any internal gaps without having to hire more people.
5. You Definitely Need An Accountant
While it may seem counterproductive to splurge big bucks on a professional accountant, you’ll be amazed at how far this investment can take you when it comes to reducing your overhead costs. Accounting professionals will be able to identify and eliminate deductions that you may have overlooked, thus saving you thousands of dollars in the long run. Your accountant will also be able to improve accuracy and help you in avoiding costly financial mistakes that could very well make or break your business.
6. Renegotiate Your Contracts
If you’ve been running your business for a long time, it just may be time to look into your contracts and consider renegotiating them. As your company has grown, chances are so have your relationships with suppliers and vendors. We recommend performing a comprehensive look into all contracts that your business is attached to, and canceling ones that no longer serve your needs. For contracts that are still essential, there is no loss in trying to renegotiate them to get more favourable deals.
________
While it is near impossible to run a business without at least some level of overhead costs, there are many solutions when it comes to reducing those costs as much as possible. We hope that this article has given you a few ideas on how you can better manage your business finances and subsequently improve your company’s financial health. All the best!
