Overheads can be very high for all businesses no matter what size they are. They can mean the difference between making a profit or loss, so the more you can reduce them the better. It is not always easy to do, but with a bit of forethought and planning, it is possible.
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Printers
Printers are nor cheap to run. They may not cost much to initially buy, but the cartridges can be expensive.
As well as how much it costs to constantly replace the inks in your printer, there is also the cost of the paper to consider.
Over a month, these can add up to a considerable sum, which you could save if you stored your data digitally instead of on paper.
Negotiate Settlement Discounts
Most businesses have to manage their cash flow, and some will happily give you a discount if you pay your bills early.
Even just an amount such as 2% can mount up over a year, and if several of your suppliers agree to this it can be a huge saving.
Utilize The Internet For Promoting Your Business
Instead of spending money on TV or magazine advertising campaigns, utilize the Internet and social media.
Facebook alone has more than 2 billion registered users, and you could possibly reach more people in this way than any other.
To manage it effectively can be time-consuming, but you could have a member of staff dedicated to all the various platforms, and it would still be cheaper than promoting your business in any other way.
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Utilities
The costs of heat, light and running equipment can mean you have huge bills every month.
There are alternatives to consider that is cheaper than electricity. For instance, gas oil can be cheaper for your heating, and your supplier will take the gas oil drums away when they are empty.
That means it’s pretty much as simple as using any other kind of fuel.
If you have a property that it is allowed on, you could have solar panels. If neither of these is an option for your business, make sure nothing is left turned on when it is not in use.
Items, such as computers that are left in standby, as an example, cost about $2 a week to leave that way.
Multiply that by several computers and by the 52 weeks in the year, and it could be costing you a small fortune annually not to turn them off.
Look at Used Equipment
If you need to replace some equipment, look at what you can buy that is used.
They are usually refurbished and in good working order and often half the price of buying new.
You usually get a guarantee with them, and although it might not be as long as when the item was new, it can still be useful if you have a problem.
Outsourcing
Consider outsourcing some of the jobs you would normally pay an employee to do.
Things such as bookkeeping could save you a lot of money if you use a freelancer instead of an employee.
With freelancers, you only pay for the work they do, and you do not have to cover their salary if they do nothing.
These are just a few simple suggestions. There are many other ways you could cut your overheads to make your business more profitable.
