Before you can pull a profit, you have to clear your overhead costs. Rent, wages, and technology are all expenses that can cut into revenue. A lot of traditional business solutions may actually be costing you money on your overhead. Fortunately, frugal business owners can now look to technology to help reduce overhead costs.
Brick-and-mortar offices come with a significant investment. Rent, utilities, and furnishings only go up in price as time goes on. Rather than spending a large percentage of revenue on office space, consider the financial benefits of virtual offices like those from iPostal1 (https://ipostal1.com/).
Virtual offices reduce overhead costs because they provide a permanent address without rent and other associated expenses. Businesses can receive and send physical mail, phone calls, and even faxes with a virtual office. These high-tech business solutions also eliminate the need for a receptionist. Important mail, faxes, and phone calls are forwarded to you without ever having to leave your home, significantly reducing your monthly expenses.
Businesses looking to save should consider hiring remote workers. Hiring remote workers or allowing employees to work from home eliminates brick-and-mortar expenses, such as rent and utilities.
Taking it one step further, employers who hire contractors or freelance workers save on expenses like unemployment insurance. Freelance remote workers work on a contract, so employers only have to pay their wages, cutting down on employee-related expenses like paid vacations, overtime, or insurance benefits.
When looking for technologies that reduce overhead costs, employers start reviewing where their monthly expenses are going. One costly expense is an on-site server. Companies that rely on servers need hardware to hold the technology and IT employees who can manage the servers. Instead, businesses should rely on cloud computing to save money.
Businesses that use cloud computing reduce their labor expenses and equipment expenses. Many cloud-computing companies offer pay-as-you-go models, so businesses only pay for what they need or use. Because of this, cloud computing allows businesses to scale as the company grows.
Travel costs are expensive, and sending employees to meetings across the country also creates unnecessary carbon emissions. Businesses can turn to teleconferencing to save money on travel expenses and adopt a more eco-friendly approach.
During the COVID-19 pandemic, businesses realized how valuable teleconferencing apps were as they allowed organizations to communicate even when formal meetings were impossible. Paying for teleconferencing software is significantly less expensive than paying for airfare, rental cars, hotel rooms, and food expenses.
Companies that still rely on paper for routine administration are wasting money. One of the most powerful money-saving technologies is customer relationship management software (CRM). With this type of software, businesses can streamline their customer funnel, remove the paper from their business methods, and cut office supply expenses.
CRM software removes the need for paper invoices and also reduces the space needed to store paper files. Businesses can also use a CRM for other applications, streamlining software expenditures. CRM software is a one-stop-shop so that companies can ditch the paper and the extra programs in one go.
The most successful businesses survive because they’re not afraid to get creative and innovate to increase the bottom line. If you’re looking to take overhead costs down and profits up, these technologies are an excellent way to get started.