You may not realize this, but one of the best opportunities to increase your business’s bottom line can be found by reviewing and reducing business overhead. These expenses, consisting of mundane but necessary essentials such as office supplies, utilities, credit card processing and insurance, each have their own unique savings opportunities. Business owners and managers often get complacent and let these recurring items grow over time, eventually bloating their company’s overhead costs. So, how do you harness these potential savings opportunities to fight this overhead battle of the bulge?
Consider these practices as a way to cut your costs.
- Get new bids from vendors in such competitive industries as credit card processing and shipping. They’ll be eager for your business, thus allowing you to negotiate better rates on these items.
- Review insurance policies that may need updating. As your business’s circumstances change over time, it is important to determine if you are over-insured or if certain types of coverage are not needed anymore.
- Learn to buy strategically. Many common items used in your business can be purchased at deep discounts through wholesale clubs or trade associations which usually have pre-negotiated discounts on many goods and services.
- Develop a cost reduction mindset and discard the flawed notion that profitability only comes through a sales-oriented strategy.
- Involve all your employees. Those employees performing day-to-day tasks are often better equipped to spot money-saving opportunities. Offer a cash or time off reward to motivate
Learn to be prudent and resourceful in managing your overhead, and you’ll see immediate results in your bottom line.
Do you have a questions about reducing business overhead? Call our office a call today.