• Get FREE SHIPPING on eligible orders over $499

    See details

  • Winter Store: Find essentials for men, women & kids!

    Shop now!

Need help? (877) 837-9569

A Newbie's Guide to Reducing the Overhead Expenses of Businesses

By: Brittany Engelmann-- 2016-07-27 7:00 am --

When first starting a business, everything seems exciting and new. It feels like you have the entire world at your fingertips and your ability to earn money and build a thriving business is all dependent on how hard you work. However, as time goes on, reality sets in. Suddenly that $15,000 you made in monthly profits looks a little less lucrative when you factor in payroll, taxes, overhead expenses, and all the other miscellaneous costs associated with operating a business. Here are some tips to new business owners to help you reduce your overhead costs and increase your profit margin. 

Review Every Aspect of Your Business

This is the first step, as in order to reduce overhead costs, you need to pinpoint the areas you’re spending too much. Identify the factors that are contributing the greatest portion of your overhead costs to see where you can scale back. How much are you spending on utilities and what portions of your business contribute to the bulk of your utility bills?

How much waste is being created within your business? How much are you paying employees and how many employees do you have? How much are you spending on inventory? How much are you spending on office, business, and cleaning supplies? Answering these questions will help you determine the areas you’re spending too much, so you can scale back on cost without compromising quality.

Reduce Your Energy Costs

If, in the process of analyzing your overhead costs, you determined utilities to be rather high, there are a variety of ways to scale back. Switching to compact fluorescent lighting can significantly reduce your energy bills. You can install automated lighting and temperature control as well, so you never waste more utilities than needed. It will enable your lighting and room temperature to automatically adjust itself throughout the day, so the lights will dim as natural light increases and brighten as natural light decreases.

Find Ways to Reduce Waste

Wastefulness can contribute greatly to the expenses of the business. You need to inspect your building thoroughly to determine the ways in which your staff are creating waste unnecessarily. If product packaging becomes damaged during shipping, rather than throwing the items out, consider selling them at a reduced cost. Create a recycling bin for scrap paper and other reusable resources.

The scrap paper can be used by employees for brainstorming or other projects, so you can reduce paper waste. Also, don’t overlook wasted time. Businesses spend a lot of money on payroll, so assess your employee schedule and make sure you’re always employing and staffing the appropriate number of people, so you don’t needlessly waste money on surplus labor.

Partner with a Top-Name Wholesale Supplier

The costs of inventory, office supplies, cleaning supplies, employee uniforms, and store fixtures, can contribute greatly to your overhead expenses. You need to partner with a top-name wholesale supplier, so you can access the lowest wholesale prices on the best supplies. At DollarDays, we don’t just work with clients, we partner with them. Our goal is to create a long-lasting and mutually beneficial business partnership where we strive to ensure your needs are always met. We work hard to source the best possible products and sell them at low wholesale prices, enabling SMBs to keep overhead costs at a minimum. Contact us today, and see how we can help you keep overhead costs low, while keeping your customers satisfied.