Running a business is expensive. When you set up a company, you have to spend a lot of money before you can make money, and these costs can really set you back. You have to fork out for so many things from energy bills to office rental to supplies and equipment. And if you get to the point where your expenses outweigh your incomings, you are in trouble.
There will always be essential costs that come with running a business, and you can never eliminate them entirely. However, there are several ways of reducing your overhead costs to save your company a great deal of money. Here are five tips to get you started.
Change your office space
If your small business operates out of a needlessly large office building, you’re probably spending unnecessary amounts on rental and utility bills. Consider switching your office to one of a more appropriate size. It will cost a lot less to rent or buy, and your monthly energy usage will be considerably lower. A smaller office space doesn’t need to be a restriction or barrier to productivity, as long as you take care to keep it tidy and free of clutter.
Offer remote working
Giving your employees the opportunity to work from home benefits everyone involved. Your staff will enjoy a much-improved work/life balance and save time and money normally spent commuting to and from the office. From a business perspective, your employees will be more productive, and you will save a great deal on your overheads. For a start, it means you can afford to rent a smaller and less expensive office, and you will spend less on heating, water, and electricity bills.
If your company suffers a security breach, you will have to spend a lot of money replacing stolen equipment and getting business back on track. By spending a little on improving your security, you could save yourself a huge sum of money in the long run. A commercial locksmith can help you secure all entry points on your premises and make it a lot harder for opportunistic thieves to enter. You may also want to consider storing valuable equipment in a safe, installing CCTV cameras on site, and requiring employees to carry identification.
Hire an accountant
The best accountants will save you a lot more money than they cost. Outsourcing your finances to a professional will help you identify areas where your business could save money, reduce expenses, and benefit from tax deductions. They will also reduce the risk of potentially costly inaccuracies and mistakes.
By switching your utilities for environmentally-friendly alternatives, you will be both saving money and helping the planet at the same time. Energy-efficient light bulbs and green sockets and plug sockets will bring down your monthly bill massively. In addition, you could also consider making your company completely paperless. By keeping all documents and files online, you reduce unnecessary printing and paper costs and save a great many trees in the process.