How to Reduce Your Business Overheads
What is a business overhead?
Overheads are the costs that accrue to the running of your business. It’s very important for business owners to understand how much there overheads come to so they can ensure they’re going to make a profit. Essentially, overheads are any kind of expense that’ll keep a business running.
Why is it important to reduce your business overheads?
There are always ways to reduce your business overheads and you might need to reduce them for a variety of reasons. Whether you’re always in the red at the end of the month or you’re conscious that little changes will benefit your business in the long run. These tips will give you a range of suggestions to ensure your business is running smoothly.
Save money on your business overheads with money that can then be reinvested into your business with these 6 tips…
1. Go paperless
Going paperless is a great way to not only reduce your business overheads but also helps create a more clutter free and green environment for your business.
You can use cloud software or disks to store important documents and sign any contracts electronically. Printing costs will be totally removed and think of the extra space you will have without all those filing cabinets.
2. Brainstorm with employees
In order to make significant changes, you will need your whole team on board. Ask your employees for their input on where they think money can be saved within the business. You could even offer an incentive or bonus scheme based on them saving your business money with an innovative idea.
3. Utilise your best negotiator
Control purchasing decisions by making one person in charge of all buying duties. This person should be a great negotiator who has time to look for the best price for services and business supplies. Prices can change significantly with different vendors so shopping around can make a huge difference to your overheads.
4. Reduce Energy Use
Switch to compact fluorescent lighting to save electricity. Cut your heating bill with better insulation and windows. Make sure your employees switch all computer equipment off at the plug before they leave at the end of the day.
When making a hot drink, only heat as much water as you need rather than filling the kettle just for one cup. These changes are all very small but can make a big difference.
5. Travel smart
Technology is a wonderful thing and businesses can save a lot of money by utilising it. Business overheads can be reduced by holding teleconferences or Skypeing where possible rather than travelling long distances to meetings.
Last minute bookings for hotel rooms and advance bookings with train fares can go a long way in reducing your travelling costs.
6. Compare your utility bills
Did you know that over 1.2 million UK businesses are overpaying their energy bills every year?
Some businesses are overpaying by a huge 80% which accumulates to over £500,000,000 annually.
Exchange Utility offers a free business energy comparison service where we can look at your bills and find the best rates available for you. As a customer of Exchange Utility, you will no longer have to worry about rolling over onto more expensive tariffs as we will look after this for you at no cost to your business. Switching energy providers or tariffs can potentially save you £1000s.