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7 Tips for Reducing Your Overhead Costs

7 Tips for Reducing Your Overhead Costs

    If you are self-employed or own a small business, you know all too well that out-of-control overhead costs can be crippling. Operating costs are a necessary evil– you need to spend money to make money, after all. But for businesses trying to weather tough economic conditions, or for start-ups just trying to break even, one month with too much overhead can be the kiss of death.

    Overhead can include expenses like rent, utilities, office supplies, and advertising. And while all these expenses seem pretty normal, it doesn’t mean they are necessary. If you’re serious about cutting costs without cutting corners, the following tips can help reduce overhead in your business.

    1. Go Paperless

    This should be pretty obvious by now, but going paperless is a great way for a business to decrease both clutter and expenditures. You can store important documents in the cloud or on disks, sign all contracts electronically, and help save the environment as an added bonus.

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    You won’t have to pay for paper or ink cartridges. You can sell your printer on Craigslist. And if you back up all your paper files digitally, you might even be able to downgrade to a smaller (and cheaper) office space, saving even more money each month.

    2. Splurge on an Accountant

    It may seem counterintuitive to shell out big bucks for an accountant or tax service professional to do your bookkeeping. After all, these people generally charge a lot of money for their services. But if you have someone at say, H&R Block look over your taxes this April, the company’s policy is to pay any penalties or interest caused by an error on their part.

    Best of all, tax and accounting professionals will be more likely to find deductions that you might have overlooked. It’s a big investment, especially for a small business. But it’s an investment worth making. You can’t put a price on peace of mind.

    3. Evaluate Your Needs

    Look around your office. Now, ask yourself, “What do I see here that I don’t use every day?”

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    Do you really need business cards in an age where you maintain a web site, a Twitter profile, and a Facebook page? How much are you paying for “premium” web hosting each month?

    You shouldn’t be paying for anything you don’t need, whether it’s office equipment, supplies, or space. Which brings me to my next point…

    4. Find the Perfect Space

    Is your office currently in a location that makes good financial sense? Do you need to maintain a downtown storefront, or would you be better served by working from a smaller office? Do you even need an office/studio space? Could you work from home instead? How often do you need to interact with clients face-to-face?

    The answers to those questions will vary depending on your industry, the size of your company, and your financial outlook for 2011. By securing a space that really suits your business, you will likely save time and be more productive.

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    5. Ditch Your Phone

    There’s no reason you need to pay through the nose for phone service. Not in this day and age.

    Again, how much you can cut back depends on the size of your company, how many employees you have, and what industry you are in. Between Skype and Google Voice, paying for phone calls and voicemail is a thing of the past, though you may still need to pay some money for international calling. Both services also have mobile apps, meaning you can stay connected on the go.

    And if you need a “traditional” land line, consider VOIP over the standard offerings from phone companies in your area.

    6. Make Smart Hiring Decisions

    If you have to hire a new employee, hire someone who has multiple strengths. They don’t need to have a degree in Computer Science, but if your new sales rep also knows how to check your TCP/IP settings and craft press releases, that’s a huge plus. Investing in professional development for your employees is another way to keep them happy and promote long-term growth and success for your company.

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    7. Develop Brand Ambassadors

    Advertising is expensive, and can’t guarantee consistent or impressive results. You might pay a couple hundred dollars to run a TV, radio, or print ad in your area, only to find that you drum up very little business.

    A smarter idea is to get your clients to become brand ambassadors. Offer your current clients and customers incentives for talking you up, and for referring new business to you. Word-of-mouth is still a persuasive tool in our digital age, and one that people tend to take for granted. Get satisfied customers to tweet about you for discounted services, or offer current customers free services for every new client they refer to you.

    The Bottom Line

    It’s almost impossible to run a business without some overhead. But these operating costs can be minimized or eliminated in many cases, leaving you with more profits in your pockets. A business with streamlined operating expenses will have the best possible chance for success, so make sure you’re running a tight ship.

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    Published on November 8, 2018

    How to Answer the Tough Question: What are Your Salary Requirements?

    How to Answer the Tough Question: What are Your Salary Requirements?

    After a few months of hard work and dozens of phone calls later, you finally land a job opportunity.

    But then, you’re asked about your salary requirements and your mind goes blank. So, you offer a lower salary believing this will increase your odds at getting hired.

    Unfortunately, this is the wrong approach.

    Your salary requirements can make or break your odds at getting hired. But only if you’re not prepared.

    Ask for a salary too high with no room for negotiation and your potential employer will not be able to afford you. Aim too low and employers will perceive as you offering low value. The trick is to aim as high as possible while keeping both parties feel happy.

    Of course, you can’t command a high price without bringing value.

    The good news is that learning how to be a high-value employee is possible. You have to work on the right tasks to grow in the right areas. Here are a few tactics to negotiate your salary requirements with confidence.

    1. Hack time to accomplish more than most

    Do you want to get paid well for your hard work? Of course you do. I hate to break it to you, but so do most people.

    With so much competition, this won’t be an easy task to achieve. That’s why you need to become a pro at time management.

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    Do you know how much free time you have? Not the free time during your lunch break or after you’ve finished working at your day job. Rather, the free time when you’re looking at your phone or watching your favorite TV show.

    Data from 2017 shows that Americans spend roughly 3 hours watching TV. This is time poorly spent if you’re not happy with your current lifestyle. Instead, focus on working on your goals whenever you have free time.

    For example, if your commute to/from work is 1 hour, listen to an educational Podcast. If your lunch break is 30 minutes, read for 10 to 15 minutes. And if you have a busy life with only 30–60 minutes to spare after work, use this time to work on your personal goals.

    Create a morning routine that will set you up for success every day. Start waking up 1 to 2 hours earlier to have more time to work on your most important tasks. Use tools like ATracker to break down which activities you’re spending the most time in.

    It won’t be easy to analyze your entire day, so set boundaries. For example, if you have 4 hours of free time each day, spend at least 2 of these hours working on important tasks.

    2. Set your own boundaries

    Having a successful career isn’t always about the money. According to Gallup, about 70% of employees aren’t satisfied with their current jobs.[1]

    Earning more money isn’t a bad thing, but choosing a higher salary over the traits that are the most important to you is. For example, if you enjoy spending time with your family, reject job offers requiring a lot of travel.

    Here are some important traits to consider:

    • Work and life balance – The last thing you’d want is a job that forces you to work 60+ hours each week. Unless this is the type of environment you’d want. Understand how your potential employer emphasizes work/life balance.
    • Self-development opportunities – Having the option to grow within your company is important. Once you learn how to do your tasks well, you’ll start becoming less engaged. Choose a company that encourages employee growth.
    • Company culture – The stereotypical cubicle job where one feels miserable doesn’t have to be your fate. Not all companies are equal in culture. Take, for example, Google, who invests heavily in keeping their employees happy.[2]

    These are some of the most important traits to look for in a company, but there are others. Make it your mission to rank which traits are important to you. This way you’ll stop applying to the wrong companies and stay focused on what matters to you more.

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    3. Continuously invest in yourself

    Investing in yourself is the best investment you can make. Cliche I know, but true nonetheless.

    You’ll grow as a person and gain confidence with the value you’ll be able to bring to others. Investing in yourself doesn’t have to be expensive. For example, you can read books to expand your knowledge in different fields.

    Don’t get stuck into the habit of reading without a purpose. Instead, choose books that will help you expand in a field you’re looking to grow. At the same time, don’t limit yourself to reading books in one subject–create a healthy balance.

    Podcasts are also a great medium to learn new subjects from experts in different fields. The best part is they’re free and you can consume them on your commute to/from work.

    Paid education makes sense if you have little to no debt. If you decide to go back to school, be sure to apply for scholarships and grants to have the least amount of debt. Regardless of which route you take to make it a habit to grow every day.

    It won’t be easy, but this will work to your advantage. Most people won’t spend most of their free time investing in themselves. This will allow you to grow faster than most, and stand out from your competition.

    4. Document the value you bring

    Resumes are a common way companies filter employees through the hiring process. Here’s the big secret: It’s not the only way you can showcase your skills.

    To request for a higher salary than most, you have to do what most are unwilling to do. Since you’re already investing in yourself, make it a habit to showcase your skills online.

    A great way to do this is to create your own website. Pick your first and last name as your domain name. If this domain is already taken, get creative and choose one that makes sense.

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    Here are some ideas:

    • joesmith.com
    • joeasmith.com
    • joesmithprojects.com

    Nowadays, building a website is easy. Once you have your website setup, begin producing content. For example, if you a developer you can post the applications you’re building.

    During your interviews, you’ll have an online reference to showcase your accomplishments. You can use your accomplishments to justify your salary requirements. Since most people don’t do this, you’ll have a higher chance of employers accepting your offer

    5. Hide your salary requirements

    Avoid giving you salary requirements early in the interview process.

    But if you get asked early, deflect this question in a non-defensive manner. Explain to the employer that you’d like to understand your role better first. They’ll most likely agree with you; but if they don’t, give them a range.

    The truth is great employers are more concerned about your skills and the value you bring to the company. They understand that a great employee is an investment, able to earn them more than their salary.

    Remember that a job interview isn’t only for the employer, it’s also for you. If the employer is more interested in your salary requirements, this may not be a good sign. Use this question to gauge if the company you’re interviewing is worth working for.

    6. Do just enough research

    Research average salary compensation in your industry, then wing it.

    Use tools like Glassdoor to research the average salary compensation for your industry. Then leverage LinkedIn’s company data that’s provided with its Pro membership. You can view a company’s employee growth and the total number of job openings.

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    Use this information to make informed decisions when deciding on your salary requirements. But don’t limit yourself to the average salary range. Companies will usually pay you more for the value you have.

    Big companies will often pay more than smaller ones.[3] Whatever your desired salary amount is, always ask for a higher amount. Employers will often reject your initial offer. In fact, offer a salary range that’ll give you and your employer enough room to negotiate.

    7. Get compensated by your value

    Asking for the salary you deserve is an art. On one end, you have to constantly invest in yourself to offer massive value. But this isn’t enough. You also have to become a great negotiator.

    Imagine requesting a high salary and because you bring a lot of value, employers are willing to pay you this. Wouldn’t this be amazing?

    Most settle for average because they’re not confident with what they have to offer. Most don’t invest in themselves because they’re not dedicated enough. But not you.

    You know you deserve to get paid well, and you’re willing to put in the work. Yet, you won’t sacrifice your most important values over a higher salary.

    The bottom line

    You’ve got what it takes to succeed in your career. Invest in yourself, learn how to negotiate, and do research. The next time you’re asked about your salary requirements, you won’t fumble.

    You’ll showcase your skills with confidence and get the salary you deserve. What’s holding you back now?

    Featured photo credit: LinkedIn Sales Navigator via unsplash.com

    Reference

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