The economy can be a volatile thing and today’s current market conditions are proving that to be true. Inflation is spiralling, the cost of fuel has skyrocketed to never before seen prices, and supply chains are still being pinched and strained. All of these factors have many businesses looking into what they can do to cut down on overhead costs. Sure, some expenses are out of your control but then there are those you can tweak and ultimately decrease.
Here are five highly effective ways your business can cut down on overheads.
Is There an Opportunity to Downsize?
One of the most effective and instant ways to save on overhead costs is to downsize the office/warehouse/commercial space. Now, this won’t be an option for all businesses, but if it’s doable it can be worth looking into. Perhaps try checking out other locations and the rent on them. With so many employees transitioning to permanent remote work, the office space you currently have may no longer be necessary.
Reduce Packaging Damage and Waste
This particular tip isn’t one that often pops into mind yet it can have a profound effect on overhead costs. When was the last time you looked into damage and waste where packaging is concerned? It can add up to a lot of money lost each year and warrants a closer look. Rather than guess how much the wastage is costing the company, it’s wise to do an audit that also highlights packaging optimization services that could be employed.
Any time you can streamline a system or process, you’ll work to reduce waste, cost, and time.
Going Green Doesn’t Just Benefit the Environment
How about a cost-savings tip that can benefit the environment and the company’s overhead? That’s exactly what going green can do for a business. When you adopt energy-saving tips, equipment, and systems, then you will be reducing the company’s carbon footprint and cutting back on costs. The savings will start to happen very quickly, even if you just adopt a few basic measures to begin with.
Some of the measures you can implement include:
- Use energy-saving equipment
- Switch to LED lightbulbs
- Use motion-sensor lights
- Adjust the temperature
- Use window coverings
- Go paperless
Rent Instead of Buying New Equipment
If your company needs new equipment, be sure to look into renting instead of buying the items. The cost will be much lower, and you may even be able to afford better quality equipment going down this route. As mentioned above, be sure to also choose energy-efficient models when picking out the equipment. This is especially the case for desktops, laptops, printers, and fax machines.
Are You Over-Staffed?
The final tip is to look at your current level of staff and ask if it’s too much? You never want to stretch employees too thin, but at the same time, there should be no waste where staff is concerned. Everyone needs to play an important role and needs to be essential.
Tweaking Your Overhead Costs
All of these tips can help you to tweak your overhead costs and reduce them rather significantly.