Rising living and operational costs have been a hot-button issue in the last year, and about 48% of all business owners stated that they were worried about their business’s overhead costs in a recent study. If you’re one of these people, then you have probably started to look at your processes and installations in search of a solution.
The good news is that you can save money if you make a few adjustments since no business is 100% efficient. And these adjustments could be much simpler than you imagine. Let’s take a look at a few ways that you could cut your business’s overhead costs in 2023.
Now could be a good time to start looking at your relationships with your current suppliers and see if you can negotiate better deals. If it is someone you buy material from, see if you could get a lower price or a discount for buying more. If it is for something like utilities or insurance, then one thing we strongly suggest you do is see if you can get a better deal with another supplier.
If you have a large fleet, then you could save a lot of money by searching for a better quote on van insurance on a comparison site. There are sites out there that specialise in van insurance specifically and will allow you to compare quotes from hundreds of providers right on the spot, so you could end up saving your business thousands of pounds just like that.
The same goes for utility companies. Look for a comparison site and check the quotes. Then come back to the company and let them know of your options. Many will be willing to negotiate right there, but if they refuse to budge, prepare to move the minute your contract with them is up.
Also, check if you’re using your facility properly. If you notice that there’s a lot of spare space or that you could create more by changing your working arrangements and setup, then do so and see if you could rent out the rest. You could also decide to move to a smaller space.
Look to see if you can join a group purchasing organisation if you’re buying supplies and furniture and materials on your own. These organisations pool the resources of their members to increase their buying power. This could give you the same price as some of your bigger competitors without their war chests.
One of the most insidious ways that companies waste thousands of pounds every year is on what are called “energy vampires”. These are appliances that keep using energy when plugged in even when they’re not in use, and they could contribute to as much as 23% of your total energy bill, so this is no small matter.
The best way to prevent vampire energy from running your utility bill up is to have a strict unplugging policy at the end of the day and after every shift. You should also invest in a few smart power strips for areas with lots of equipment so you can cut off all or specific pieces of equipment fast and easy.
Cutting overhead costs is often very simple and all the tips in this article could work depending on what you’re currently doing. So, consider trying some or all of these tips and continually try to find new ways to monitor and reduce waste in your organisation.