When it comes to running a business, you want to maximise your profits. This is done by maximising profits and minimising costs. Overhead costs accumulate quickly so those who are just starting out need to keep the costs as low as possible. Breaking even is the first step to a successful business, therefore spending money on utilities, office supplies and staffing needs to be kept to a minimum. Here are seven ways to minimize the overhead without feeling like you are cutting corners.
Know Your Space Needs
Utilities can be controlled by only having the amount of space you actually require. The less dead space you have, the less space that has to be cleaned, heated, cooled, and so forth. This will save money on utilities. Before searching for office space, look to see if there is a way that you can rent a smaller office space with other companies in a building, or even work from home while your company is building capital. Further, running into a company, which offers cheap rubbish removal in Sydney, will help you manage your office’s waste in a cost-effective manner.
Reduce Supply Purchases
Office supplies can be a rabbit hole of cash flow. Take inventory of your office supplies on a monthly basis and only order at specific times. Consider going completely paperless, or charge extra for paper copies of bills. Paper, toner, and pens may seem like inexpensive items, but they add up quickly. They also have hidden costs, such as depreciation expense on the printers and maintenance costs.
Use Virtual Help
A website is a great way to keep business coming in, but it can lead to more costs. Hiring someone to handle the social media for your company is a great way to cut costs because they can work from home. Make sure they have experience with the best way to run ads to save money and keep content fresh on your website. Most importantly, hire a virtual assistant that knows how to monitor your data usage so you can have the cheapest web hosting plan possible.
One way to save money is to get rid of landline phones and go mobile. You have complete control on the amount of data you purchase and extras you add to the plan. More importantly, you can get discount plans for business phones. You can also look at Internet phone services such as Google Voice and Skype. In addition to purchasing mobile phones, consider purchasing laptops to allow employees (and yourself) to work from home. Offering flexibility of work environment will boost the mood in the office and improve productivity.
Similar to the shopping for office supplies once a month, you can purchase almost anything in bulk and save prices. If you have a break room, consider purchasing snacks, coffee, and cleaning supplies in bulk. You can even switch to using reusable plates, cups, and silverware by offering your employees a way to clean up after themselves. This will save costs by reducing waste and restocking costs.
Hire an Accountant to Automate
When you are preparing to look at your finances, having a licensed accountant is the best way to save money and keep your company safe. To save on costs, however, you should find an accountant who will be able to set up an automated system to figure payroll, through time clocks, and even run audits to let you know where money is seeping out of the company’s bank account. Many accountants can also run other office jobs so they can help you in various divisions.
Overhead costs include salaries and wages. When you are just starting out, it is best to hire people who can work in multiple departments and have several skills. You can also consider using freelance contractors who will work for a few weeks or months. Freelance contractors do not need the same benefit package as employees, so you will be able to save money and get work done.
While it is impossible to run a business without incurring some costs, you can minimize as many costs as possible. If you know what your needs are and constantly evaluate where your money is going, you will be able to be successful and maximize your profits. It is important to remember that it still will take a while to break even, so use the prior methods to help the breakeven point come much faster.