Reducing overhead cost in a business.

[Kubiatabasi]

When it comes to profitability of a business, it is all about keeping costs lower than revenue. What are some smart ways that you think a small business can reduce overhead cost?

For me, I think that the business owner can do the work of operating the business himself or herself without a staff. The cost of paying salary would be eliminated.
Share your own tips on reducing overhead cost for a small business.

 

[Heatman]

Unfortunately, this is majorly is dependent on the kind of business that you are doing because if it is a business that needs to have at least more than five staffs for the business to be operational, it is not going to be impossible for you to do it alone.

 

[Nomad]

Over staffing is one of the major reasons for draining business funds. Therefor when you cut your workforce, you will naturally reduce overheard costs. A lot lot of jobs can be done through outsourcing, therefore, if possible instead of hiring full time staff of the job, try to work with freelancers. You can also move to a cheapr location to save on rent.

 

[Ja Sa Bong]

If your business is one man business, you don't need to employ any worker to work for you as you're going to have the responsibility of paying the worker's salary. If your business needs workers, you can't operate the business alone, you need help. It's an expenses which you can hide from.

 

[Good-Person]

Unfortunately, this is majorly is dependent on the kind of business that you are doing because if it is a business that needs to have at least more than five staffs for the business to be operational, it is not going to be impossible for you to do it alone.

I think that over-staffing should not be the case to begin with. A business'es management should be clever enough to know how many workers they actually need in the first place. If they cannot understand this basic thing, then this would mean that they have a really faulty management.

 

[Heatman]

I think that over-staffing should not be the case to begin with. A business'es management should be clever enough to know how many workers they actually need in the first place. If they cannot understand this basic thing, then this would mean that they have a really faulty management.

When you hire so many people who are not doing anything for your business, you are definitely going to end up paying salaries that are not supposed to be paid because those people are not contributing to the growth of the business. It is a very big management mistake to do anything like this because it will not help your business in a positive way.

 

[Good-Person]

When you hire so many people who are not doing anything for your business, you are definitely going to end up paying salaries that are not supposed to be paid because those people are not contributing to the growth of the business. It is a very big management mistake to do anything like this because it will not help your business in a positive way.

I think that over-staffing is not the only thing that may induce the owner to increase the expenses, as there are many other factors as well that may play a very important role. For example, there are other things such as unnecessary transportation expenses that could also increase the expenses gradually.