3 Ways to Cut Overhead Costs

Overhead costs are associated with anything that helps your business produce or create a product or service. That can include rent, utilities, employee salaries, insurance and so much more. Most businesses are looking for ways they can cut down on the cost of overhead, so here are a few simple ways you can reduce what your company spends.

Use Remote Services

Hiring remote workers means there will not be as many employees on site. Instead, you can hire individuals or companies to handle business aspects that don’t require in-house employees. For example, you can hire an answering service to manage your customer support. Outsourcing to a service might may it easier for your company to provide 24-hour live support. Plus, since the employees are not in-house, you don’t have to provide the office space for them, which cuts back on rent and utilities. Each business is different, so be decisive about what your company can reasonably outsource, and how outsourcing could reduce overhead.

Go Paperless

Paper takes up a lot of space. Keeping track of paper files with accounting, legal or other important information can require quite a bit of storage space. For small businesses, it’s hard to find the space to keep all those paper files. Whether you’re just starting out or you’ve been in business for years, becoming a paperless business can also cut down on overhead since there’s no need for filing cabinets. Also, without paper files, you might also cut down on purchasing certain office supplies, like staples and paperclips. That might sound like pennies, but for folks who are making every cent count, or large companies that spend thousands on office supplies, cutting back on these items could make a big difference.

Get Testimonials

Although it’s important to have good marketing, it’s hard to keep generating authentic content that engages new and returning customers. Many businesses are turning to their real customers’ testimonials for marketing content. The best time to get a testimonial is right after a customer has purchased your product or used your service. You can also send follow up review requests in the weeks after a purchase if the customer doesn’t respond immediately. If you notice any stand out testimonials, you can use them on your website or on your social media.

Reducing your overhead can be a good way to increase your profit margin. See what these suggestions can do for your business’s overhead costs.