Reducing Overhead in a Slow Economy

Keeping overhead low is key to the success of a business, especially in a down economy. There are several easy and efficient ways to ensure low overhead while not compromising performance or quality:

• Outsource: Consider what services need to be done in-house and what can be outsourced. Outsourcing can save your business time and money if it’s the right arrangement.

• Needs vs. wants: Every business purchase should be evaluated in terms of either a need or want. Keep tabs on your desires. What expenses are necessary for maintaining operations? Less money going out means more money available to keep your business afloat during those uncertain and predictable times.

• Collaborate: Can you share resources? Sharing space, supplies and equipment are ways to keep overhead down. Plenty of businesses are in the same boat and are possibly willing to consider a collaborative arrangement.

• Do your homework: Find out about free and low-costs marketing opportunities. Social media is one place to start. Get on Facebook, Twitter and You Tube. Often times, these are the first places consumers turn for information on businesses. Never underestimate the value of word-of-mouth publicity. Customers who refer their friends to your business are worth their weight in gold. Gain media attention by doing something exciting or innovative.

Low overhead can translate into peace of mind. If expenses are low, you can spend your time focusing on more important tasks, like business development and retention. There are several other ways to reduce costs. Start small and work your ways toward more drastic changes. A few simple adjustments can make a world of difference.