6 Ways Small Businesses Can Reduce Overhead Cost

6 Ways Small Businesses Can Reduce Overhead Cost

If you are looking to make your small business more cost-effective and efficient, there are six simple adjustments you can make to reduce expenditure and time-wasting. From taking advantage of modern technology to changing business utility providers, you will be saving money in no time.

Take a look at this list and see how many, if any, of these positive steps your business has taken to be more economical.

1&2. Take Advantage of Technology

There are endless ways small businesses can use technology to make their work more efficient, cost-effective, and straightforward, but two top tips are to use free internet calling services and set up an automated chatbot.

1. Free Video Calling Platforms

Technology doesn’t have to be complicated and overwhelming. Chances are in your personal life you are already using the technology that can save your business money. Using Whatsapp or Skype to make internet audio or video calls can save your company a lot of money on VoIP technology. These platforms are great for group communication, they’re easy to use, and they don’t cost a thing!

2. Automated Chatbot

An automated chatbot on your website can reduce the need for customer service personnel, while also providing instant answers for clients with frequently asked questions (FAQs). The bot can choose an appropriate response to simple queries from a catalog of readily available answers. This cuts down on the volume of calls and emails your company will receive, meaning less time and manpower spent on customer services.

3. Reduce Utility Prices

Changing your business electricity provider is one simple way you can make savings, but a lot of companies don’t think of it. In fact, many business owners don’t receive or don’t remember receiving a renewal letter from their electricity provider, so they continue paying too much without looking at the alternatives. 

Roughly one in three businesses are in a position to change electricity providers, they just don’t know it. Provided you don’t have debt with your current supplier, and you give the appropriate notice, you can compare business utility prices online and find a better deal for your company. Get a quote today and see what a difference a better business electricity deal can make! 

4. Cut Down On Office Space

In the past couple of years, it has been much more normalised and accepted that many businesses have a lot of remote workers. If your company can run effectively with some staff working from home, this is a great way to cut down on office space, which is a significant cost reduction.

You can further reduce office space with the next top tip.

5. Go Paperless

Moving to a paperless system will eliminate the need for file storage space, allowing you to downsize your office further. Moreover, without the cost of paper, ink, and mailing supplies, you have another easy decrease in spending.

Transition to a digital billing and invoice system, store all files on a computer, and only print when necessary. Once you have transitioned to a paperless system, you won’t look back. Files will be easier to find, your billing and invoicing will be faster, trips to the post box and supply stores eliminated, and to top it off, you’ll be saving money.

With the help from some paper-saving apps, you can still write notes easily, save receipts and mark your calendar, all while eliminating paper from your business life. 

6. Buy Second Hand

While it can be tempting to fill your office with shiny new gadgets and top-of-the-line equipment, a massive cost saver is buying refurbished furniture and equipment that is still good quality. Despite being used, these items should be functional, practical, and efficient, but offered by manufacturers at a discounted price.

Start Saving Today

This guide has hopefully inspired you to start making proactive changes to the way you run your small business and begin saving some money.

One last top tip: Take it one day at a time, and don’t forget to breathe! Some of the bigger changes, such as going paperless or transitioning staff to working remotely, can seem like daunting prospects. However, there is plenty of information online on the best technologically efficient alternatives to paper, and countless success stories of working from home, especially since the beginning of the Covid-19 pandemic. You’ve got this.

Some of the other top tips, such as using free internet calling platforms and seeking a new electricity provider, can be set into motion straight away. It’s time to start taking these simple steps toward a more cost-effective future for your business. Why delay when you can start today?

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