Finances & Money

5 Ways to Lower Your Business Overheads

CleverDude_TeenagerFieldTripTo make your business successful and profitable, you need to generate more income and keep your overheads to a minimum. While developing an effective marketing campaign is one of the best ways to increase the former, there are many steps you can take to reduce the latter. Here are 5 simple measures you can take to keep your business overheads to a minimum:

1) Maintaining Premises

Maintaining your business premises is important for several reasons. Firstly, it will create a better image of your company. Secondly, it will provide a pleasant working environment for your staff. Thirdly, by keeping on top of work now, you will reduce the likelihood of having to pay large maintenance bills in the future. Dealing with problems straight away as and when they arise means that the problem can cause less long-term damage in the future. If left, a simple problem can have a knock-on effect that can be more problematic and costly to resolve.

2) Electricity

For many businesses, the cost of electricity is one of their biggest expenses. However, it is also one of the costs that is easiest to reduce. Turning the lights off when not in use is one of the simplest steps you can take to lowering your overheads. You should also consider using energy saving bulbs. Although the initial cost of these is more expensive that regular bulbs, they will use less energy, cut the cost of your electricity bills and need replacing less often. Another step you can take towards lowering your electricity usage is to make sure all appliances are turned off when not in use.

3) Heating

Although keeping your premises at a reasonable temperature is important for the welfare of your employees, this does not necessarily mean that you need to have the heating turned to full all the time. Adjusting your heating settings will make a big difference to the cost of heating. Either use economy mode, as this will restrict the amount of heat you use unnecessarily, or set your heating on a timer so that you do not waste energy using heat when the premises are not in use. You may even see a difference to your bills by turning down the heating by just one degree.

Retaining heat is just as important. Make sure you have all the doors and windows closed whenever you have the heating turned on. If possible, make sure your premises are well insulated as this will help to retain more of the the heat and you will need the heating turned on for shorter periods of time.

4) Stationery

Most businesses have a need for office stationery of some sort, but exactly what you need and in what quantities depends on the type and size of your business. Avoid overbuying by thinking exactly what your business needs and don’t be tempted to buy unnecessary items. If you use a large amount of certain items of stationery, consider buying these in bulk as this is often more cost-effective.

5) Printing

Another common business cost that people overspend on is printing but this is relatively easy to avoid. Firstly, you should only print what is absolutely necessary. Email documents if possible and do not print more than you need. Secondly, choose the right ink cartridges for your printer. For example, if you have a Canon printer, then opt for compatible Canon ink cartridges. Thirdly, set your printer to draft or eco mode. This will reduce the amount of unnecessary ink released by your ink cartridges. Finally, make sure that you and all your staff check through all documents thoroughly before sending them to print to avoid having to reprint documents.

These are just some of the most common overheads that a business has and a few suggestions on how these can be lowered. Depending on the type and size of your business, there may be many other overheads that you can significantly reduce by simply putting some thought into the matter. Just write a list of your expenses and carefully consider any simple steps you can take to cut costs in your business.

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James

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