How to Lower Overhead Costs

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Most small business owners know that you have to spend money to make money. However, you don’t have to spend every penny you earn just to make the business thrive. There are tons of minor things you can do to cut down on spending and increase your bottom line. While these solutions won’t make or break your bottom line, the small costs can start to add up quickly.

December 29, 2015
Author: NCH

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Here are 11 ways you can lower overhead costs

  1. Turn off the lights. It might seem like a silly solution, but turning off the lights in rooms that you are not using in your office can lower overhead costs by saving you money on your energy bill.
  2. Buy used furniture. You can find perfectly good office furniture at used furniture stores in your city. They might have a few scratches or dents, but the savings will be well over 50% off the new retail value.
  3. Go paperless. The costs for paper and printer ink can be very high. Cut those costs and use digital options as much as possible.
  4. Work from home. If you’re a one man/woman show don’t waste money on renting an office space. Instead make a home office, separate from your living area, and work out of your home. Even if you have a few employees, allowing them to telecommute can save you the pain of having to pay for rent.
  5. Cut travel costs. Business trips don’t need to be a first class experience every time you have a conference or trade show to attend. Instead opt for getting a coach ticket or staying in a more simple hotel.
  6. Create training resources for new employees. Avoid wasting your seasoned employee’s time on training new employees. Instead develop a PowerPoint or video that has all of the training information for the new employee. Simply have new employees watch the training PowerPoint or video and have any follow-up training and questions covered by seasoned employees.
  7. Buy used electronics. You can buy quality used or refurbished computers, laptops, mobile devices, and printers at a fraction of the retail price. Use the savings to buy the more high-end electronics that are required to run your business.
  8. Trade Services. Use your negotiation skills to barter or trade with other businesses. Chances are that you can find another business that needs your services and would be willing to trade services.
  9. Use independent contractors. Don’t waste time and money hiring and training employees when you can easily contract the work out. There are numerous sites that can pair you up with a qualified freelancer or contractor. Plus, you’ll save money on overhead costs that you would typically have to spend on employees such as insurance and taxes.
  10. Cut your landline: Do you still have a landline at your business location? Consider cutting the landline if it’s not essential to your business. With most cell phone plans offering unlimited minutes, you could easily get by with just using your cell phone as your main business phone line.
  11. Ask employees. Be sure to ask all of your employees on ways that the business can cut costs. Your employees may know places to cut costs that you’ve never even considered.

There you have it! 11 ways to lower overhead costs!

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