Cutting costs is essential for any business, no matter it’s size. But it’s especially important for those who have shareholders to satisfy or those playing with the house’s money. However, all companies should take a look at their expenses, and find ways to reasonably reduce them without affecting quality. For some, it could be enough to give them more room to breathe and redirect these savings on things that could actually increase their business. But for others, it could actually be a life or death situation. Here are a few ways any business can significantly reduce their overhead costs.
Look for Energy Efficient Solutions
Most businesses are overpaying on energy,and this is often due to pure ignorance. For instance, few people are aware of how much leaving devices plugged in when not in use can cost them in electricity for a year. Did you know that standby energy, which is the energy used by devices that are not in use, could cost your business as much as 15% of your total energy bill? Just taking the simple step and unplugging can make a huge difference, and that’s just the start.
Making the necessary changes is the first part. The second is negotiating a better deal with your current utility company. You have to let them know that you have options and are willing to switch. You should also start looking at other suppliers yourself and see what they have to offer. You could look up business electricity suppliers on asite like Utility Bidder for instance and get a quick quote from over 27 different suppliers. You’ll then be able to have more bargaining chips when it comes to negotiating your deal.
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Spend On an Accountant
Cutting expenses is not the only way you can reduce overhead costs. You can also do so by making smart ones. For instance, every company should spend money on a good accountant.
First of all, most will have a policy that any added interest or penalties caused by an error will be covered – so that greatly reduces the chance of them even happening. If you were to do it yourself with little experience, chances are you would commit errors that could cost you, and you will have to live with it. Also, an accountant will be able to find deductions and always be aware of new ones that could benefit your business.
Go Voip
This might seem extreme to some, but in some businesses, you don’t really need a phone at all. Some can operate using nothing but tools like live chat, Skype, email, or Google voice. If that’s too extreme for you however, go with a Voip phone service. They’re much more versatile and allow you to get things like text transcripts on calls and messages, video conferencing, and the ability to use your business phone number across all your internet connected devices no matter where you are on the planet.
Just making these few changes could help you cut expenses, and will make a difference on your bottom line. Make sure that you apply some or all of these in your business and constantly look for ways to reduce waste and improve cost efficiency.
