Small business owners understand too well the need to cut costs wherever they can. As a growing business, you need to increase profit as much as possible to stay ahead. Saving money, even in small increments, can make a huge difference with trying to reduce overhead.
Overhead costs can include everything from marketing, salaries, equipment and supplies, office leases, and utilities. Many business owners struggle to maximize revenue when they are paying for so many expenses, many of which may not be necessary. Luckily, there are simple things you can do as a small business owner to lower office costs in the new year.
1. Work from home
Most businesses in today’s market conduct business virtually, making a physical storefront almost obsolete—giving small business owners a huge advantage. You can save hundreds of dollars a month simply by opting to work from home instead of chaining yourself to an office or storefront lease.
Some business owners may occasionally need office space, but not often enough to justify the cost. As an alternative, virtual office spaces and meeting rooms are available in all major cities to rent by the hour or by the day through companies that specialize in virtual office solutions, such as Davinci Virtual Office Solutions.
2. Move to the cloud and other Web-based technologies
In addition to simply conserving space, going paperless and moving all of your documents to the cloud can cut a lot of your operating costs. Although some software may cost money up front, they can end up saving you a lot time, money, and headaches later on. Fortunately, the most popular ones—such as Google Drive—are free. By conducting business online, you save money on supplies as well as time spent on performing tasks, resulting in more productivity and thereby more revenue.
3. Outsource tasks
Being the owner of a small business involves wearing a lot of hats, and sometimes it can be overwhelming. Standard administrative tasks can take up hours of your workday, using up valuable time you could be spending on work in which you excel that actively drives revenue. That’s when you should consider outsourcing tasks to a competent staff member or hiring someone new. Even if you don’t have the budget for a full-time receptionist to tend to these details, you can get the same professionalism and productivity from an affordable virtual receptionist service.
4. Hire talented and flexible staff
It seems counterintuitive to spend money on hiring a new employee, but if you recruit an individual with multiple strengths and abilities, you actually save money while getting help with not just one, but a variety of tasks. As a result, your company not only accomplishes more tasks, but produces higher quality work. By hiring an employee with many talents, you cut costs of the need to outsource for other tasks, as well. Hiring a good employee can be a smart long-term investment, for as they grow professionally, so does your business.
5. Reassess your budget and business needs
Over time, it is crucial to frequently reassess your business needs, especially when continuing practices that aren’t effective anymore can be secretly leeching your budget. What your business needed several years ago, or even months ago, may no longer be necessary. Embrace change and find new ways to manage expenses. Reflect on services, equipment, supplies, and even space that your business uses. If any of these things are not being used regularly, it may be time to cut them from the budget.
Following these small business tips can make cutting costs this year easy. Evaluate your business needs and develop a game plan of investments and divestments; search for what is using up the majority of your budget, and consider options that may help increase profit and grow your business.
To learn more about how Davinci can assist you in cutting costs in 2015, contact a member of our expert team today.