Low Business Overheads = Big Profits: Here’s How To Do It
It’s a simple sum, you just take the money you have, and take away the cost of running your company, and that is what your profit is. The less you have to take away for overheads including utilities, wages, resources, and the like the larger the amount is left in the profit column. So it makes sense to reduce the overheads as much as possible, and you can do this by following the guide below.
Shop around for your utilities
The first thing that you can do to ensure that your overheads are as low as possible it to shop around different utility providers for the best deal.
Luckily, the market is so flooded with different companies vying to get your business, and you can use this to your advantage, picking the ones that offer the most for the least amount of money.
This can be done on things like water, electricity, gas and any other major consumable that you need for your business to run successfully. Also remember that if you have been with a provider for a long time, you will have the power to negotiate a better deal, as they will not lose your regular custom. Something that you can use to drive the cost of your utilities down even further.
Another great tip for lowering your business overheads is to think green and become more eco-friendly. This works because it’s all about preserving resources and only using them when absolutely necessary. This is great for the environment as it reduces energy consumption and pollution. It’s also great for your overhead costs because by using less you will be spending less on resources.
Remember too that it’s a lot easier to get people on board with an environmentally friendly scheme than it is a business resource saving scheme. This is because they feel they are doing something vital to save the planet, rather than just lining their employers pocket. It really does have a positive effect on the environment too, it just happens to have the same effect on your business outgoings as well.
Compare financial services
The costs of financial services such and business bank accounts and business insurances can vary widely from provider to provider. That is why it is essential to take some time to research and compare these before you invest in them.
Remember you can easily assess what is included in a business bank account or a commercial business insurance quotes online before you make your final decision. Something that allows you to balance the needs of your company with the cost of the service provided. It is this that can help keep your overheads low while ensuring that you have financial help and protection if anything doe go wrong.
Encourage remote working
The business world is so different from how it was 20 years ago. Now we all have access to smartphones, laptops, and the internet it has become a lot easier to work remotely. Either at home or in a location for employees choosing.
This is brilliant news for reducing overheads because if more people work remotely, the need for large office premises and all of the overheads that go with them is reduced. Even if you still maintain a small office for core staff, you can still save a great deal on costs, making the profits side your business equation a lot larger than it would be otherwise.
Just remember to brief all your workers on security. Including not using public wifi when they are dealing with sensitive company materials or customer details.
Wages, to cut or not to cut?
Last, of all, wages are a huge overhead that needs to be thought about carefully. However, cutting what you pay your workers can be something of a controversial move. This is because it can seriously affect morale and staff retention causing more problem for the business down the line.
In fact, offering low wages is probably the most controversial strategy for lowering overheads that there is. If you do decide to go down this route it will need to be handled with sensitivity and care, and you will also need to include other incentives such as a benefits package, paid overtime, or more sociable hours to sweeten the deal.
Otherwise, you could end up with a lot of disgruntled employees that are less productive and less motivated. So, although your overheads may be low, your profits will be too, because that side of the company isn’t working at full efficiency.