No matter how well or badly your business is doing, it should always be a priority for you to keep your overhead expenses low. But it should be a priority for you if you're running on tight margins. So many businesses waste money left and right without realizing it. Sometimes it's because they are being negligent, but sometimes, it's simply because they don't know better. Let's take a look at some simple ways that you could cut your business overheads.
Go Smart
Use smart lighting and heating technology to reduce your energy cost and carbon footprint. Smart thermostats allow you to cut your heating costs by as much as 12% if you heat a lot in your place of business, which could make a big difference in your annual energy spending. What makes smart thermostats so great is that they will allow you to control them at distance or use a timer so you can only heat your premises when you need to.
For instance, you could set a smart thermostat to start heating a few hours before you or your employees arrive. You could set it to shut down a few hours before everyone leaves and use that residual heat. If you’d like to learn more about smart thermostats and possibly have one installed, go for a brand that is known for quality and get information on things like ease of installation, mobile features, and ease of use, among others.
Outsource What You Can
Another thing that you should do right now if your spending is out of control is to outsource some functions. If you have an in-house accountant or IT expert, for instance, there's a good chance that they're not working 100% of the time. These are not functions that require constant work and monitoring, so you should see how much you're spending on work hours there and see if you could make spending by kicking the task to someone else.
Speak with Your Suppliers and Diversify Them
We know that you may have a personal relationship with some of your suppliers, but you shouldn’t be chained to any of them. You need to let them know that they could lose you and constantly look for new ones. The more suppliers you know, the more options you’ll have, and the more leverage you’ll get during negotiations.
You should also speak with your utility suppliers and see if you could get a better deal from them. These companies care a lot more about new clients than old ones, so you also have to let them know that there’s competition out there and that you’re willing to leave. You can also use comparison sites to help you switch to a new supplier. Some of them will allow you to find quotes in seconds and switch right on the spot, allowing you to significantly cut your overhead just like that.
If you want to have a little more room to breathe and increase your bottom line, follow these few tips. Also, consider looking at your processes, and see where you could tighten them up.
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