4 Ways To Safely Reduce Your Overheads

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There comes a time in business when you realize you are making a good margin on your product or service, but your profits are left wanting, and the reason for this is usually your overheads. Your overhead costs are just too high and that can be a major problem for any business that is struggling to survive, never mind thrive. But while cutting your overhead costs sounds like a pretty simple task, it’s not something you should ever rush into because if you make cuts in the wrong places, you might find you do more harm than good to your business.

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Shutterstock Licensed Photo – By Pasuwan

It’s about finding a way to ‘safely’ reduce your overheads. So, without further ado, here are the best ways you can start to make cuts without ever sacrificing your effectiveness, efficiency or productivity.

1. Reconsider You Communications

Communication is one of the most important aspects of a successful business, but there are ways to reduce the costs while simultaneously boosting your efficiency. For example, internet services such as Skype and Google Voice can drastically reduce what you pay for a phone while encouraging employees to use instant messenger services instead of calling can also play a big role.

2. Change Up Your IT Support

How you approach your IT needs – and cost-cutting – all depends on your business, but there are solutions for every size and type of company out there. If you rely heavily on software development, instead of shouldering the heavy costs of an in-house team, browse this site and consider outsourcing your developer needs. If you are a small business, simply switching from computing to cloud services and get a range of up-to-date business software without having to buy it can make all the difference to your profits. You’ll be saving on expensive data storage, email server and IT support too.

3. Cut Your Online Payment Services

More and more businesses have realized the importance of having an online store of some kind so that they can widen the net for potential customers. But a lot of the time, a company’s online turnover doesn’t justify the monthly fees of a merchant account. If that is the case for you and your web sales weigh on the side of modest, try using PayPal or Clickbank, which would see you pay a small charge per sale instead of a monthly fee.

4.  Staff Costs Need Reducing

Typically, the biggest expense a company has to shoulder is their employees’ salary. But this doesn’t have to be the case anymore because outsourcing has become such a big business. From bookkeeping to creative content writing, web design to legal advice – you can call on freelancers for a fraction of the price and get things one to a higher standard. And instead of paying them a monthly salary and holiday pay and all of that, you can choose freelance workers for specific projects, allowing you to gain the expertise you want and need for so much less.

Running a company costs a lot, but it doesn’t have to cost as much as you originally thought.

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Ryan Kh is a big data and analytic expert, marketing digital products on Amazon's Envato. He is not just passionate about latest buzz and tech stuff but in fact he's totally into it. Follow Ryan’s daily posts on Catalyst For Business.