5 Brilliant Ways to Cut Overhead Costs
Are your overhead costs weighing a little too heavy on your business’s shoulders? You always knew running a business was going to be expensive, but did you have any idea that it would all cost this much? As ambitious and innovative entrepreneurs, we often dream of all the things we could do if only we had just a little bit more in the company budget.
Pardon the cliche, but it’s time to stop dreaming and start doing. With the information in this article, you’ll discover five powerful ways to cut business costs significantly so you can put more money into growing your business effectively.
Draft a Plan
The first step to cutting overhead costs is to create a thorough plan as to what you want to do with your business dollars. What financial goal are you aspiring to reach? What would more money help you achieve in the long run?
Not only does this kind of thinking help you visualize your end goal, but it can also be shared with your employees, partners, and coworkers to motivate everyone to work toward the same objective.
In an ideal world, what would you do with a little extra money? Write it down. Determine exactly how much you’ll need in the budget (make it realistic) and proceed with the following tips for cutting overhead costs.
Reevaluate and Negotiate
There is always money to be found in your current contracts with vendors, suppliers, and the like. It’s time to reevaluate your current situations with third-party providers and see what you can do to bring down costs.
If your current vendors and suppliers aren’t willing or able to work with you to reduce your final bill, the next step is to seek out more affordable alternatives. Shop around, gather quotes, and try to negotiate a deal with a new source. If you contact one of your vendor’s close competitors, explain the current situation, and express your desire to switch to a company that will be more obliged to work with your business’s budget, you’re likely to get a decent deal.
Outsource What You Can
Hiring in-house employees is a massive expense -- perhaps the most expensive part of operating a business. If you really want to reduce business costs, you may want to think about adding outsourcing to your company playbook.
When you outsource some of your company’s business matters, you can save hundreds of thousands of dollars in operating costs. Think about it: how much does it cost to keep your in-house employees? How much money are you pouring into training, benefits, office equipment, salaries, and employee development for every person you hire?
Chances are, it’s a lot. One powerful way to drastically cut business costs is to outsource what you can--especially customer service. Now, we’re not recommending that you direct your loyal customer calls to a complete stranger. No, you can outsource to professionals right here in America.
Take Davinci Virtual Receptionists for example. For far less, you can outsource your administrative work to a live, professional receptionist (or several) who has taken the time to learn everything there is to know about your business and your customers. The live receptionist can take calls, schedule appointments, provide information, and so much more—and you don’t have to set them up with a benefits package and a fully equipped desk.
Waste Not, Want Not
Your company is operating on a tight budget, which means every aspect of your office equipment and supplies should be fully utilized. If you have a storage closet crowded with outdated equipment that nobody uses, sell it. If you think that everyone could be using fewer office supplies, reduce shipments. Tighten your belt and cut back on everything you absolutely can. In extreme cases, this may include cutting back on staff and condensing roles.
Choose an Alternative Office Space
We’ve saved the best way to cut business costs for last: an alternative office space. There’s no denying that your current business property lease is draining your funds every single month, but what can you do? You need a place of business for your business, don’t you?
Yes and no. In this innovative age, we are learning how to do things differently without sacrificing success and growth. Choosing an alternative office space to reduce business costs is one of the many practical ideas that have sprung forth in the last decade or so.
There are generally three different routes you can take, each one with its own perks and advantages.
No Office at All
First, you can choose to run a remote operation wherein your employees work from home. This type of situation is often a great way to save on overhead costs when you’re just starting out, as you can hire freelance workers (or independent contractors) rather than paying the heavy costs of hiring for in-house work.
You might be wondering where you would hold client meetings without a proper business establishment. That’s where meeting rooms for rent come into play. Instead of paying a monthly lease for your business building, you can rent a professional business meeting room by the hour only when the need presents itself.
Some business owners may not be entirely comfortable with the idea of running a remote business with employees that are scattered all over, trusted to get the work done without being effectively managed. For these diligent employers, we recommend renting out a coworking space. Rather than paying for your own private building, you can rent a coworking space by the day or hour and gather your employees for weekly meetings and progress reports.
You can also choose to reserve a coworking space several days out of the week (if not every day) and treat it like your place of business. Sure, there will be other people working in the space who don’t work for you, but that’s just a fantastic networking opportunity.
Transitioning from a physical place of business to a virtual office is perhaps the easiest and most effective method for cutting overhead costs. When you reserve a virtual office, you can maintain the utmost professionalism while significantly reducing your business costs. Choose from a wide variety of convenient locations, use your new professional address for all things business related, and reduce your business costs all in one swift move.
And when you reserve a virtual office with Davinci, you get the advantage of having the opportunity to pair it with affordable coworking spaces, meeting rooms for rent, and a reliable virtual receptionist. Top it all off with mail forwarding, a fully-equipped business center, and a designated lobby greeter for any of your visitors, and you’ve got a fully-functional, highly-professional business without the overhead costs of leasing an office.
Spend Less on Success with Davinci
It’s time to start cutting overhead costs with strategic changes and wise decisions. Spend less on success when you choose Davinci for all of your cost-cutting adjustments.
Contact one of our professionals today and we’ll help you design the perfect business plan for your budget, whether that entails a coworking space, local meeting rooms for rent, a live receptionist, or a virtual office.