A Quick Guide To Minimizing Your Overhead Costs In Your Small Business

A Quick Guide To Minimizing Your Overhead Costs In Your Small Business

Daniel Hall 26/10/2021
A Quick Guide To Minimizing Your Overhead Costs In Your Small Business

Running a small business on a budget is tough, but it doesn’t have to be impossible.

Idea_Bubble.jpeg

Whether you're looking for ways to lower the cost of materials or reduce the stress on your small business, we have some answers for you. We'll start with cutting back on unnecessary expenses and work our way up from there so that by the time we get to outfitting your office space, you'll already know how to save money! It's all about having a plan of attack that fits into your budget and helps keep things running smoothly, no matter what happens. In this article, we’ll show you some tips for reducing overhead costs.

1. Talk to an Accountant

Accountants are great at catching little things that may slip by the average small business owner, which can end up saving you quite a bit of money in the long run. They can even help you compare gas prices and electricity prices in order to find a way to help your business save some money. If there is anything even slightly off about your accounts payable or bookkeeping, having someone on retainer who can catch these mistakes will help keep your costs under control without sacrificing the quality of your services or products. Just make sure that whoever you hire is trustworthy and has experience working with businesses like yours before taking them on as a consultant!

2. Buy in Bulk 

This is a no-brainer when it comes to saving big bucks on your everyday purchases, but buying in bulk doesn’t always have to be about groceries or materials for building things. Sometimes, if you find the right suppliers, you can buy boxes of pens and paper clips in bulk quantities that fit into your small business budget. And other times, buying in bulk means purchasing more than what you need for the sake of convenience. Look around at local retailers that offer items relating to your needs. Do they sell printers? If so, ask how many printers are left over from large orders that are sitting there waiting to be sold off individually. This could end up being a great score!

3. Shop Around

If you’re just starting out in business, this might be one of the hardest things to do. When you finally find an amazing supplier that gives you great deals on your office supplies or shipping costs, it can be hard to resist using the same place every time. Don’t get stuck in a rut! Most suppliers are willing to negotiate rates if they think they can keep you as a long-term customer. You don't have to switch up your whole supply order every quarter if you don't want to, just try calling your favorite supplier and asking them what sort of deal they'd give for signing on for another six months. If there aren't any discounts available yet, ask again once the six months are up! Having a good relationship with your supplier can definitely be worth it in the long run.

4. Shop Online

While shopping online may not always save you money, depending on what you're buying, it might be worth checking out to see if there's an order minimum or bulk purchase option available. If so, take advantage of it! You never know when getting something shipped to you will cost more than buying the same product in bulk from another website. Even if shipping costs negate any savings you would’ve gained by ordering elsewhere...well, at least you tried! Sometimes just knowing that somewhere else offers better rates for certain products is enough motivation to keep looking around until you find something that works for your small business budget.

5. Pay Attention to Your Packaging

Chances are, your business will need to ship something at some point or another. If you’re ordering supplies in bulk and saving on shipping costs, as a result, be sure that the company is using good packaging techniques as well. Small details like this can play a huge role in minimizing your overhead costs without sacrificing anything else about your order. Shoddy packing often results in items arriving broken and unusable. This means you either have to pay more money for replacement products and wait longer for them to be shipped out than expected…or worse, it could end up damaging other items that were already delivered to you! Just make sure whoever is doing your packing knows what they're doing.

6. Look for Used Equipment

Whether you need to invest in some new printers for your office or you’d rather upgrade to the newest model of the copier you already have before you buy anything new there are plenty of used options that might be just as good or better than what you’re buying. This is especially true if it's office equipment that is regularly replaced due to updates and changes in technology, since most business owners aren't looking for deals on these items, they're often sold at half-price. Just make sure everything is certified refurbished before buying anything secondhand!

Look_for_Used_Equipment.jpeg

Running a small business has its challenges, but there are ways to minimize your overhead costs. The tips above will help you get started thinking about how you can control the cost of overhead in your own company without draining funds or stressing yourself out. Whether you're looking for ways to lower the cost of materials or reduce stress on your small business, we have some answers for you!

Share this article

Leave your comments

Post comment as a guest

0
terms and condition.
  • No comments found

Share this article

Daniel Hall

Business Expert

Daniel Hall is an experienced digital marketer, author and world traveller. He spends a lot of his free time flipping through books and learning about a plethora of topics.

 

Latest Articles

View all
  • Science
  • Technology
  • Companies
  • Environment
  • Global Economy
  • Finance
  • Politics
  • Society