The day-to-day running of a business can be expensive and can eat away at your profits. Therefore, entrepreneurs must proactively look for ways to minimize their expenditure. Read the seven ways to reduce business overheads.
- Use Solar Power
Both small and large companies will require a considerable amount of energy to power their businesses every year. Unfortunately, this can result in an expensive energy bill that can impact a company’s bottom-line. Thankfully, there is something you can do to eliminate your utility costs.
Save a substantial amount of money each year with the help of solar power. Solar installation has decreased significantly in price in recent years, and can provide your business with free energy to power its operations. So, if you want to say goodbye to expensive electricity costs, consult a professional solar energy company to arrange an installation.
- Turn to the Cloud
The time has come to ditch expensive servers and data storage, as you should turn your attention towards cloud computing. Switching to cloud services does not require any complex installation processes or maintenance, as you simply need an internet connection for a smooth transition. As a result, you can save, share and collaborate on the cloud software, which will automatically update to improve business productivity.
- Downsize Your Office
An expensive lease can play havoc with your company’s finances. If you have many employees on staff, consider allowing individuals to work from home, so you can downsize your office space to save on rent and utilities. Moving to smaller premises can slash your rent, while telecommuting is believed to make employees more productive – so your business will make more money, as a result.
- Outsource Your Team
There are some jobs that are cheaper to outsource, such as bookkeeping, as you will simply pay an experienced freelancer per project. You can therefore utilize their expertise without having to hire an expensive, permanent member of staff, which can considerably reduce your company’s overheads.
- Consolidate Incidentals
Rather than paying expensive fees for single events, combine corporate days to reduce your overheads. For example, a product launch party could take place during the same weekend as a business conference, so you can utilize facilities and receive a discount. It’s an effective strategy for minimizing expenditure without compromising on event, training or celebration days.
- Review Pay Increases
Not every member of staff will need a pay rise every year. Before you boost their paycheck, compare an employee’s salary against the marketplace. If they are underpaid, give them a pay increase of 1-2%. If they meet or exceed the industry salary for their job role, pause their pay increase and review it next year. However, if they more than succeed at their job and you don’t want to risk losing them, a pay rise may have to be on the cards.
- Manage Processes
A company could save money by simply performing processes at a different time of day, week or month. For instance, a long, complex activity might be a better performed when a department is slow. It might also be beneficial to perform activities in batches. Review your existing processes and aim to identify the best times and days to perform each action.