Doing more with less: The art of cutting overhead
Ah… money…it makes the business world go ’round. Keeping overhead low is key to a business’ success, especially in the early stages. There are several tried and true ways to temper costs, while not compromising performance or quality:
- Outsource: Consider what services need to be done in-house and what can be outsourced. Outsourcing can save your business time and money if it’s the right arrangement. Plain and simple, if it adds to the bottom line, keep it. If it detracts from it you might want to re-evaluate its worth.
- Evaluate needs vs. wants: Every business purchase should be considered in terms of either a need or want. Keep tabs on your desires. What expenses are necessary to staying in business? In a small business, less money going out means more money available to keep us afloat during those uncertain and predictable times.
- Collaborate: Can you share resources? Sharing space, supplies and equipment or even personnel are ways to keep overhead down. Plenty of businesses are in the same boat and are likely willing to consider a collaborative arrangement.
- Do your homework: Find out about free and low-cost marketing opportunities online and in your community. Never underestimate the value of word-of-mouth publicity. Customers who refer their friends to your business are worth their weight in gold. Gain media attention by doing something exciting or innovative. The upfront cost may be worth the end result. Good press is hard to come by these days.
Low overhead can translate into peace of mind. If expenses are low, you can spend your time focusing on more important tasks, like business development and retention. There are several other ways to reduce costs. Start small and work your way towards more drastic changes. A few simple adjustments can make a world of difference. What other tips do you have to curb costs? Share them on our Facebook Page.