How to reduce overhead when running a small business

Running a business is already considered as a challenge especially if you are just starting out and trying to make a name for yourself. One of the main goals of having a business is to increase its annual profit and reduce overhead expenses that are why every penny counts.

Overhead expenses are always part of the daily business operations and it usually includes the following things:

-Rental fees
-Employee salary and benefits
-Utilities such as Electricity, Water, Phone and Internet

Below are some tips on how to save additional money by decreasing overhead costs:

1.) Check your utility bills and find out how much your business is paying on a monthly basis just to avail of all the basic necessities.

Are there any utilities that you consider as least important or something that your business can do without?  It really depends on what type of business do you have.

One of the most highly paid monthly bills is your electricity and if you find your current provider to be too expensive you can always check out Simply Switch business electricity if they can offer you a better monthly rate as compared to how much you are currently paying. If ever you have made a choice, they can take care of the transfer process as well.

Some electric suppliers offer a special rate to small-mid scale businesses. You can check if your company is qualified to receive a special rate per kilowatt hour of usage from your supplier.
2.) Contemplate on your monthly rent and see if it is worth keeping the space or not.

A lot of new business owners often make the common mistake of renting out space even though the business itself is not yet that self-sufficient. It is normal that the income of a startup business won't be that stable for the first 6 months and a lot of establishments also close down within that period because they can no longer afford to cover the monthly rent.

Instead of renting a space you can save some of your capital money by either converting a part of your house into either an office or any kind of workspace of your choice. All you have to do is prepare the necessary permits to make things happen. If the business has gained more than enough profit after some time then you can start thinking about drafting an expansion plan.

3.) Always do make sure that your business is just right staffed. It's the employer's obligation to pay their employees the right amount of salary regardless if the business is earning or not. As a business owner, you should only employ minimal staff for the first couple of months till the business starts picking up revenue. Instead of hiring a few extra help or staff, carry on some of the tasks all by yourself for the meantime. This strategy saves you a good amount of money at the same time you get to learn more about the ins and outs of running the business. 

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