When it comes to running a business, one of the things that can have a huge effect on the bottom line is the cost of overhead. Renting and maintaining a space, as well as providing things like internet service, utilities, and supplies can get pretty pricey and cut into profits. Here are three effective ways to reduce overhead costs.
1. Going Paperless.
One of the easiest ways to cut down on overhead costs is to go as paperless as possible. Business owners should switch all of the correspondence with their clients to any one of the many paperless methods of getting into contact with people. There are so many ways to communicate with people electronically like Skype, instant messaging, and email, that paper, ink cartridges, and printers have become unnecessary expenses. Going paperless also saves space and can help prevent clerical or filing errors — which can lead to lost time and poor customer service.
2. Going Green.
When it comes to making big changes, the easiest way to do it is to start small. When business owners are making efforts to dramatically reduce their overhead costs, one of the easiest ways to start is to go green. This might include changing all the light bulbs in the office to energy-efficient bulbs, reducing transportation costs by reevaluating delivery services, turning off lights and computers when they aren’t in use, and eliminating waste. This is also a way for businesses to increase their corporate social responsibility, which customers and clients often respond well to.
3. Setting Up a Virtual Office.
This is probably the best way to decrease overhead — by not using a physical office space altogether. One of the biggest overhead expenses and operating costs for companies is renting a space for fully furnished offices, but these days that’s not actually something business owners have to do. If a business owner can swing it, he or she should have all of the employees telecommute and work from home, eliminating the need for an office space. Virtual office services usually include a professional address for receiving mail. If a business owner does need a temporary office space, one with professional reception services, a lobby, and a kitchenette can often be provided by a virtual office service.
If a business owner is looking for ways to cut operating costs, it can be easy to make small changes like going paperless and reducing energy use, but the most effective way to do it is to take advantage of virtual office services altogether.