Whether you are in start-up or growth mode, as an entrepreneur or business owner your aim will be the same; increase profits and reduce expenses. Therefore, it is always a wise strategy to consider, analyse and monitor all overhead costs, especially the ones that reoccur on a regular basis, as they can amount to a significant sum over time.
Spend less on Overheads Top 5 List:
- Plan ahead and buy in bulk, including office supplies, raw or component materials used to produce your products, as larger orders mean you shop less, often at a lower price and pay only once for shipping
- Clean up and update your mailing list on a regular basis; if you use direct mail make sure that you are not sending out marketing copy that reaches no one
- Collaborate and hire independent freelancers and / or manufacturers’ sales reps; because they get paid on a fixed rate or commission only, which is less expensive, as compared to employing permanent staff – However, one downside might be that you are not actively building an organisational culture by training and retaining a talented, motivated and happy workforce.
- Reduce, Reuse, and Recycle or Upcycle equipment; by planning ahead and using estimates of current and future requirements you can ensure that when replacing appliances or other equipment you do not outgrow these before their lifetime, hence it reduces the number of times you have to replace them. Furthermore, consider to reuse equipment or re-purpose them, and / or sell them on to reinvest into new equipment.
- Go paperless; it is better for the environment and your purse, so for example use emails to send out letters, offers and invoices and make use of digital and mobile marketing strategies that won’t cost you a dime and can go #viral
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All the Best,