As a small business owner, you have a lot of expenses you must weigh in on to fully run a successful business. Focusing in on ways you can decrease your overhead expenses is an amazing way to put more of your profits in a secure account. There are several ways to decrease your spending and some of which include budgeting travel needs, negotiating your rental space and utilizing a temp agency to allow for a flexible staff when you need it. Also being smart with choosing advertising methods that don’t break the bank. Finally, you also have a choice when it comes to your vendors and office supplies.
Negotiate Your Rental Space
Renting a space for your small business takes some time to get it right, but some new owners overspend on space when they are starting off. Going over your inventory and supplies and reviewing to see if the space that your currently in can be either reduced in size or if another location is less of an expense. Opening to try to pull online orders or allowing sales employees to telecommute and work from home might free up some unnecessary space.
Budget Travel Needs
Travel can be a huge overhead cost so taking advantage of free flights and awards with hotels can really make a big difference. Some business credit cards give bonuses and free miles and flights with sign up bonuses. These awards can allow you to take advantage of many offers including free checked bags, seat upgrades and free flights. Choosing a credit card that will give you the best available perks is best discussed with a small business loan specialist at Seek Capital. They are aware of the offers and availability based on your applications.
Having a budget for advertising is a must but spending too much or reach an unrealistic demographic for your small business is silly. You want to reach the best targeted demographic that you can for a fraction of the cost so utilizing social media to connect with your customers and potential customers is a smart way to cut the postage from direct mailing pieces. Keeping up with email targeted lists with reward programs is also a way to generate new and recurring business. Take out the unnecessary additional advertising you have been talked into and focus your attention on things that are giving you a return. Always ask your customers how they heard of your business or who referred them to you will always be a great question to see where you are pulling the new customers from.
Smart Vendor Options
You have a lot of choices to be made when it comes to who and how often you buy items for your small business. Making a list and making a few changes might be necessary to reduce the overhead costs. You can talk with your current vendors and see if there is any negotiating to be made. You are also able to talk with new vendors to see what they can bring to the table. Negotiating a better rate with a higher volume might sound crazy, but if you are in an expanding growth stage, this might be hitting the nail on the head! Vendors just like your small business, like the ability to count your sales as a steady source to maintain their overhead too.
Office supplies are one of those necessary variable expenses that can vary month to month. The They are also something that if managed, can be cut down with internal procedural changes. Do you really need hard copies of every sales sheet in a filing drawer? Would making going mostly paperless cut down on some expenses? Also, the machines you rent for printing in each individual office be cut down to a central area all of the sales force uses. These are all things each small business could cut down on very easily.
Outsourcing Staff and other Services
Would it be more cost efficient to outsource some help from a staffing service on certain days to help with the accounting or marketing needs? Maybe a temporary worker hired by a staffing service a few times a week instead of a full-time worker will offset additional tight margins and give you a little breathing room. This allows for less of the company’s money to be spent on employee benefits and wasted days sitting not being productive.
Most companies sales force has an inner drive and have a bit of a competition in their blood, although some small businesses don’t have the additional bonus cash to give the huge payouts. With that said the sales drive your small business so the more sales that come in, the higher your profits will be. Even if you award the team with a catered lunch or an evening of entertainment, giving them the carrot and stick to drive their inner sales to produce more without spending much.
Decreasing overhead within your small business may seem like a constant daunting task but adjusting spending where your profits can be saved will be a blessing in disguise. Follow these tips and you will begin to see your quarterly numbers begin to creep back up and your business could end up ready to embark on a growth phase.