The amount of overhead your business pays directly impacts its profit margin. As such, it’s in every company’s best interest to have its overhead as low as possible. This is even more important for small businesses, where there is even less room for waste or unnecessary spending. Here are some simple ways to lower your small company’s overhead without reducing staff.
Go digital – If your business still prints a large number of documents, you’re spending money on consumables such as paper and ink or toner cartridges. You can eliminate this expense by going paperless. Instead of printing documents, utilize electronic versions that can be worked with, shared, and stored digitally. Take advantage of electronic signatures for documents such as contracts that require signatures.
When you absolutely must print documents, do so more economically. Print in black and white instead of color unless necessary, utilize duplex printing to print on both sides of your paper, and print in draft mode to use less ink or toner.
Cut the cord – The telephone cord, that is. If you’re relying on a phone company for your business phone service, you’re paying significantly more money than you need to be. If your company requires a traditional business phone line, switching to Voice over Internet Protocol (VoIP) can provide you with the same features as the phone company at a lower cost. In addition, by now, most professionals are familiar with services such as Skype, Google Voice, and Zoom, all of which are great alternatives for business communication.
Utilize annual subscriptions – If you’re paying for subscriptions through software companies, be sure to take advantage of yearly subscriptions. Paying annually rather than monthly typically comes at a lower rate, enabling you access to the same product for less money.
Re-evaluate your pick-me-up service – Coffee is a requirement in the office, but are you paying an unreasonable amount to provide it for your employees? The ubiquitous coffee pod is convenient but more expensive than coffee by the pot. Ditch the pods and replace them with more affordable bags of coffee to see significant savings.
Downsize your office – Are you utilizing all of the office space you’re paying for? If not, you’re wasting money. Downsize to a smaller, more practical space that costs you less in rent each month. Or ditch the office altogether if possible and have all of your employees work remotely to realize a substantial positive financial impact. Most businesses have discovered in 2020 that their staff is perfectly capable of being productive while working from home.
It’s simple math: having a lower overhead means a higher profit margin for businesses. All of these tips can help your company lower expenses, which is something any business would benefit from.