When starting a small business, there are many things to think about. It goes without saying that one must be confident in either the product or the service that is the core of trade, but this isn't all. Maintaining and increasing profitability are also driving forces, as are keeping overheads low.
Reducing the cost of overheads is an important factor, especially in this day and age. However, it can sometimes prove to be counterproductive, so some thought is needed. One way to do this, is to look at how much something costs, and see if it is cheaper for existing staff to do this or whether getting a company to do it is more cost effective.
Taking office cleaning is a good example. If you believe that your staff are worth forty pounds an hour for the business, then they are better utilised making sales or performing their normal tasks than cleaning an office for an hour or two, especially as a contractor will do this for a lower hourly rate.
Another way to reduce overheads, is to look at things such as power bills. It is quite possible to shop around online and compare prices of utility providers in order to get the cheapest supplier.
Turning off lights and computers when not in use, closing doors to keep heat in and keeping a close eye on stationary are also easy ways to reduce overhead costs.
