Saving on your business overhead is like putting cash right into your pocket. Small business owners always seek ways to maximize their budget so they can label as much of their revenue as profit. As you might know, cash flow is what keeps your startup afloat. To boost cash flow, you either need to sell more or reduce expenses, and when your business isn’t large, cutting back is the most sensible choice.
Every business owner knows the basics of reducing overhead, but sometimes it takes a bit of creativity to reduce spending without compromising business solvency.
Go Green and Save Green
Adopting eco-friendly practices has become popular among both homes and businesses. You might think that going green means spending a lot of money, but that’s not true. In fact, you can make your business more sustainable without needing any special tools. For instance, using online business software like merchant accounts and mobile office applications can cut carbon emissions by up to 65 percent compared to keeping the same functions in-house.
Start shredding all of the old paperwork and use it as packing whenever you ship items. Use .PDF converters to send emails of your documents rather than faxing or printing. Print on both sides of paper rather than one. Turn off the lights and turn up the AC while you are out of the office. You will be amazing at how much green being eco-conscious can save you!
Less Travel, More Skype
You can never predict when gas prices are going to go up. If you regularly have meetings with colleagues and partners, you should consider cutting out the travel and using free videoconferencing tools. Not only is the software free for download, the programs are advanced enough that you can see, talk, and even share documents all from a remote location.
Buy Previously Owned Furniture
Once you start to price the cost of office furniture, you will quickly discover just how much that modern desk you love costs. You need ergonomic, space-saving furniture that has plenty of storage room, but you do not necessarily need to buy new when you are starting up. There are plenty of places that you can buy previously owned furniture that is in like-new condition. Search for going out of business sales and third-party sellers who have liquidation sales in your area and you can save thousands.
Hire Independent Contractors
Do you really know how much it costs to hire an employee? When you are starting off and building your business, it may be in your best interests to do everything you can on your own. You can do your own taxes, start your own marketing campaigns and handle ordering all of the supplies without an assistant at first. If you absolutely need help, you may want to consider hiring independent contractors as opposed to full or part-time employees. This will save you a great deal in payroll taxes and HR costs.
You can never completely eliminate overhead costs, but you can definitely trim the fat. If you want to gain a competitive advantage as a start-up, cutting operational expenses is a must. Get creative, be realistic, and budget properly. As your book-of-business starts to expand and your budget increases, you can come up with even more creative ways to save money.