Profitability is at the forefront of your business, so here we give our top tips on how to reduce your overheads to maximise your success.
1. Operating Costs
Before you can think about cutting overheads, you need to know how much your operating costs actually are so you can work out what you are dealing with! A good way to do this is to look at the previous year’s expenditure.
If you are a start-up then you don’t have this to go on, so there will be an element of guessing, but get quotes from people about office, technology costs etc. and you should be able to predict a rough figure for running your business.
An effective tool in getting the price that best suits you! You will need to develop strong relationships with either suppliers or customers in your business; reach out within your networking circles and see if any of them can make recommendations.
Solid relationships will allow you to generate deals that you might otherwise not have access to. Make sure you negotiate the best deal that works for both of you. These relationships will help out immensely if you are ever in a tight squeeze.
It is often cheaper to outsource to specialists than it is to have them work in house. This is especially true if you do a lot of project based work. Hiring in the help that you need for specific times of the year will help keep your overall yearly overheads to a minimum.
4. Office Space
We at Powwownow love a bit of remote working! So when you are starting your business or looking at ways to reduce overheads… think about where you work. Is it essential that you have an office and that all your staff work from one central location?
Remote working offers a host of benefits not only to an employer in terms of reduction in cost but also for the employees.
Technology is the future, as they say… so why not invest in some. Services such as ours allow you to stay in touch with colleagues and clients without the cost of travel or office space. Conference calls, video and web sharing mean you can stay in touch with everyone as if they were in the room with you, no matter where you are!