A healthy annual profit margin can ensure the longevity of a business. Yet both large and small expenses can eat away at your bottom-line, which can make it difficult for the business to make a profit. That is why you must proactively look for ways to reduce your company’s overheads.
Decrease Business IT Expenditure
Email servers and data storage can quickly add up to a pretty penny, which can considerably damage a small business’s profit margin. Switch to the cloud to enjoy the latest software at a fraction of the cost, which will also require no installation or maintenance, as it will automatically update, so you will not need to rely on IT support.
Outsource Tasks to Affordable Freelancers
There are some tasks you don’t need to hire internally. For example, there are millions of freelance workers across the world who can happily provide bookkeeping, content management, web development, or graphic design on a per project basis. So, you can smoothly run your business without hiring expensive in-house staff.
Cut Back on Company Car Insurance Premiums
Car insurance can be expensive, especially if you provide your staff with company cars. You must do your homework to secure the best deals on the market for your business. For example, if you or your employees travel short distances for work, you could benefit from paying a pay-per-mile rate, as well as a base rate, which could lower your car insurance premiums each month. Learn more about Metromile car insurance.
Say Goodbye to Under performing Staff
As difficult as it might be, it does not make financial sense to keep employing under performing staff. They cannot only put a drain on your resources, but their attitude or inability could impact productivity or employee morale. Review your team to identify who is or is not performing. Also, speak to HR before you fire an employee to ensure you do not open yourself up to a potential lawsuit.
Downsize Your Office Space
Take a good look around your office. Do you really need so much space? If you have no plans to expand in the near future, you should consider downsizing your office. You can either move to a smaller office space, or you could even allow employees to telecommute each day. It might also be possible to find the same-sized office for a cheaper price somewhere else, which can help improve your annual profit margin.
Sublease Your Office Space to Other Businesses
Alternatively, if you own your office, consider subleasing some areas of the buildings to other companies. For example, a small start-up business might be more than happy to take out a lease on a group of rooms going to waste, which can help put money back into your business. You never know, leasing the office could also lead to a potential business collaboration, which could increase your annual turnover.
Have you managed to reduce your company’s overheads? Leave a comment below to share your top business tips.