Every business owner will eventually come to the same conclusion: the overhead is too high, and it’s eating into profits. But what can companies do to cut down on these costs? Rent, employees, and bills always need to be paid on time. It can often seem as if there’s limited options for how a budget can be pared down.
As LifeHack points out, though, “one month with too much overhead can be the kiss of death.” Believe it or not, there are several ways you can effectively cut down on your daily, monthly, and yearly overhead. Here are four tips to keep in mind.
1. Go Paperless
For some businesses, this might already be obvious, but a surprising number are inching very slowly toward storing data on cloud solutions and disks, and signing contracts electronically. Every day you spend printing documents is money and time wasted — and the average employee spends 18 minutes searching for a paper document.
2. Keeping Data in Cloud
You’ve likely heard about cloud computing solutions — this is when you access software, data and hardware from a remote location. Did you know that 88% of cloud-using companies agree that cloud has helped them to save money? Cloud hosting reduces the need for an IT team, allows for quicker software updates, and decreases the cost of data storage. You can even have a cheap cloud business phone.
3. Keep Closer Track of Consumables
Consumables, or tools and supplies, will often be a big annual source of unnecessary financial loss. Items like staplers, tape, pens, scissors and even paper have little value on their own, and even the best employees might misplace them or take them home without realizing. You can take charge of this by designating one employee to be in charge, or by keeping them in a cabinet within your eyesight. Alternatively, supply each desk with a limited number of supplies, rather than making it an office free-for-all.
4. Reward Your Employees
Seems like a strange way to reduce overhead, but many businesses undervalue employees in the short term rather than seeing them as long term investments. The average employee costs about $1,000 in hiring and training. A simple, inexpensive reward given to one employee monthly, or providing refreshments once a week, can help boost morale and keep your team, and their knowledge, around for the long run.
Are you interested in how cloud hosting can help you cut down costs? Let us know in the comments. Learn more.