Cockermouth Town Council
How to Cut Your Business OverheadsWhile businesses spend the majority of their time working up strategies to increase sales, open up markets and boost their profits, an equally important aspect of running an efficient business is to cut your costs.
Overheads include everything from your rent through to your office supplies - in short, everything you're paying for to keep your business operational. This article takes a look at the tools and strategies you can begin using to search for cost-cutting measures that'll save your company money consistently into the future.
RentOne of your steepest overheads will be the rent you pay on your office space. This can feel like a fixed price - one that you're unable to bargain down. It's also costly and disruptive to move site, though of course many businesses are forced to do just this when they scale up, expanding their square footage to accommodate more staff.
It's in these situations that taking account of the rent you'll have to pay will be crucial. Shopping around for the best price on rent is important when choosing your office space; out-of-town industrial parks tend to be some of the cheaper areas to base your business.
UtilitiesA business must pay its bill just like a household. With several computers and other electronic equipment used consistently on a daily basis, your electricity is going to be by far your largest cost in terms of utility overheads. Business energy suppliers can now be compared using slick and easy to use websites that are driving down competitive pricing for your own energy contracts.
To make the switch to a new supplier offering a cheaper deal has never been easier - and the accumulated savings will be a huge bonus to your company's overall financial health.
StaffHow does one make cuts to their wage bill without laying off staff or reducing wages? You might choose to bring in automation into your business, which can make certain of your staff redundant, saving you money in labour costs. A more pleasant option - avoiding laying people off - is to be intelligent with who you hire to work in your company. You want to squeeze the highest-possible value from your staff, getting the best-quality, efficiently-delivered work through which they earn their place in your business. Hire multi-talented and driven individuals so that your human resources are always plentiful and cost-effective.
Office EquipmentThe wear and tear of constant use can mean that certain items of office equipment need to be replaced regularly. Items like desks and chairs might only last a year or so, while a spilled mug of coffee is enough to damage expensive electrical equipment at any moment.
While accidents are difficult to predict, more predictable is the running out of your office stationary. All these items - furniture, stationery and electrical items - should be sought-out at the cheapest possible prices. Compare office equipment websites to find those that offer the best deals. You may even be able to negotiate a deal for your company that's better than what's advertised.
Use the tips outlined here to bring your overhead costs down, boosting your profits as a result.