Easy Ways to Reduce the Cost of Overheads for Your Business

We all know running a business is getting more expensive and sometimes it even seems like there is no end to the additional things you need to keep moving forward.  With so many costs coming in and out of your business, it may seem impossible to keep up with what you need to spend money on, what is nice to have and those things on your business wishlist.

However, this doesn’t have to be the case. There are plenty of ways that you can reduce the cost of operations for your business without it having an adverse effect on performance. Here are four easy ways that you can cut back on your operational costs and boost your bottom line.

1) Outsource Non-Core Activities

Outsourcing non-core activities can be a great way to reduce the cost of operations and free up your time. By outsourcing these types of tasks, you will be able to focus on what really matters: income generating activities that will help to grow your business. It is especially important for small businesses with limited resources to outsource work that they don't have room for in their budget or time schedule. Yes, there is a cost to it but the price should be worth it to buy back your own time so you can focus more on the high value tasks within your business.

Outsourcing allows your business to become more productive without the cost and commitment of an in-house hire. It’s also excellent for short term projects or business times of the year.

There are a number of different types of tasks that you can outsource, including administrative work, marketing and PR services, bookkeeping, order fulfillment and even manufacturing. By finding the right outsourcing partner, you can feel assured that your business will run smoothly while staying within your budget.

2) Remote working 

An obvious one but remote working or having a virtual office set up is another great way that businesses can reduce their expenses. 

It will save you money on office utilities or even allow you to relocate to a smaller and more affordable space, saving thousands on rent. A lot of small businesses have switched over from rented office space to using co-working spaces or have gone fully virtual in the last couple of years as perceptions around needing a physical space to deliver quality products and services has changed. Co-working spaces also offer greater flexibility and thus prove more cost-effective than the commitment of an office lease. 

While these are obvious savings for your business, studies have shown that remote working and cutting out the commute can also boost productivity significantly. This means that you get happier and harder working staff members whilst saving money - win-win situation.

3) Create Content in Bulk

We’ve all heard it, we all know it, but most of us still resist it! Creating content is exceptionally time-consuming and it's often one of the first tasks to get pushed to the back burner when deadlines start piling up. However, if you create content in bulk, you can significantly reduce the amount of time that it takes to produce new posts/articles or social media posts.

Where possible, the best idea is to front load your content at either the start of the year or during your quietest season.  This way, you will always have plenty to post throughout the year and you can top it up with more relevant content if trends change or your business switches focus.

Having a content calendar is another great option that can help your business produce more without straining any one team member or department. By having topics and ideas pre-planned out for weeks in advance, it becomes easier to keep up with deadlines and publish new posts regularly. Get all staff involved in the process so that the whole team feels invested in the content that the business is producing!

4) Tax Planning

Of course I’m going to mention this one! Tax planning is very important but often overlooked. Many businesses wait until the last minute to do their taxes, which can lead to a number of costly mistakes.

If you want to reduce the cost of operations for your business, start by looking into tax planning services. It can help you take advantage of deductions and benefits that will often save your business money by reducing the amount owed.

With so many tax planning strategies to choose from, it can be overwhelming at first to know where to begin. However, if you partner with a reputable accountant or financial consultant/advisor, they can offer expert advice on how best to reduce taxes.

You can ensure that your business is saving as much money as possible on taxes. By reducing this type of cash outflow for your business, you will be able to keep more cash in-hand and reinvest it back into growing your company.

All of these points are things you have probably thought about before for your business. But pulling them together into a list like this can show you how a simplified and targeted approach to cost savings can help your profits by reducing overheads. Spotting profit leaks, both in terms of costs you don’t need or better ways of doing things to make your business more productive, should be something you are doing each month in your business and not waiting for a discussion with your accountant! Once profits start to grow in your business, it gives you an opportunity to decide what to do next- build those profits up for future use, invest in new equipment or technology, expand your team or pay yourself a bonus!