Saivian Eric Dalius on Simple But Effective Ways of Cutting Business Overhead Costs

When you set up a small business, you need to be very conservative about your expenses, especially overhead costs that can easily drive your business down by putting pressure on the cash flow and eroding the little profits you can make. You need to remember that at the end of the day, you have to spend less than what you earn says Saivian Eric Dalius. It is as true for a large business as it is for a startup. While you must do whatever it takes to grow your business, you need to be alert about cutting back on your expenses for achieving better cost efficiency and profits. Some simple tips:

Reconsider Requirement of Office Space, Recommends Saivian Eric Dalius 

Not so long ago, a large and well-laid-out office was almost mandatory for even small businesses not only to give employees an enabling work environment but also to impress customers and investors. However, the coronavirus pandemic has demonstrated that businesses can continue to be effective even when a majority of the staff is working remotely out of the home. It means that you can effectively implement a virtual office and keep the physical office size to the minimum to save significantly on the rent and utilities. If there are compelling reasons for you to operate out of an office, you should recalculate your space requirements. To save on costs, you can renegotiate with your landlord or look out for spaces with lower rentals, says Saivian Eric Dalius.

Maintain a Lean Staff

One of the biggest cost heads of any business is payroll and staff-related expenses. If the business sentiment is bullish, it is easy to hire lots of people; however, if there is a downturn, cutting back can be difficult and painful. It is invariably better to keep employees to the minimum to ensure better business sustainability. One of the best ways of reducing your fixed staff cost is outsourcing the tasks as much as possible to independent contractors or freelancers who are paid only for the output.

Run a Paperless Office, Advises Saivian Eric Dalius

Generating pieces of paper not only requires you to buy stationery. But also printers and ink cartridges and people to maintain files. You can eliminate most of these expenses by going paperless. You can not only maintain local records but also back them up onto the cloud. So that you can access them from anywhere you like, even on the go. And not be tied down to your physical office. Further, you are better protected against natural disasters that may prevent you from accessing your office. Or manage your paper records. Electronic record generation, retrieval, security, and maintenance are much more efficient and cost-effective, observes Saivian Eric Dalius.

Conclusion 

Since even the best of cost-cutting methods can go awry if not implemented properly. For making your business cost-efficient and spot opportunities for cost-cutting, you need to be constantly vigilant. By employing an accountant, even when you have automated record keeping and accounting. You can help you to keep track of your expenses and ensure there is no wastage.