How Low Can You Go? How To Keep Overheads From Swallowing Your Small Business
Successful business people know that to make a profit, they must do one thing. That thing is to make the books balance. In fact, it doesn’t matter how much money is coming in, if it’s less than what is going out. With this in mind, it’s those outgoing costs we are going to look at below. Providing you with some suggestions on how to lower your overhead costs, as a way to make your small business much more profitable.
For small business one of the most expensive overheads can be the rental cost of their business premises. Retail stores, in particular, struggle with this because there is a great deal of competition for prime locations, where footfall is good. As this means more people through the doors and more people that are likely to, make a purchase. Other businesses may be in a more favorable position because they have the flexibility to choose a less prominent location. Meaning they can save money on rent. However, don’t just run out to find the cheapest business property available. Remember that very poor quality locations such as those next to a landfill or other unpleasant areas need to be avoided. As they will give the wrong impression to your clients.
Other costs that can be through the roof when dealing with small business overheads are utilities. These include things like gas, electric, and water. This is because the rates will be different for commercial properties that they would be for residential ones. However, you can save some money by shopping around for the cheapest costs in the area. To do this use online sites like Stream Energy rates, where you can compare electricity prices. There are other sites that you can use to do the same for gas and water too. So by being savvy in this way you can save on the outgoing overheads, while still getting the utility that you need for you businesses to run.
Getting clients and making sales are crucial elements of survival for any small business, right? To get clients it likely that you and your colleagues will have to travel to different areas for meeting, and presentations. This can cost a fortune and be a huge contributor to overheads. So what can be done about this? Well, one option is to ban travel altogether, using virtual meeting spaces online to convey information to clients. This can work for some business, but for others, folks will still need the reassurance of a friendly face before they part with their money. In these cases, why not implement a strict travel policy that includes economy flights and basic hotel provision. Then if you employees want anything more, they will have to pay for them out of their own pocket. After all, they are there for work, and you shouldn’t have to payroll them having a good time. Especially if it’s adding to an overhead debt that is affecting the success of your business.