Managing The Rising Overheads Taking Over Your Business

Collaborative post – may contain affiliate links

Every business has to deal with overhead and, given the recent climate, every business has likely seen those overheads rise. Let them rise too much without any new means to manage them and it can prove a deadly risk to your business. So, what can you do? Here, we’re going to look at methods of cutting back the costs of your business without affecting your productivity.

Consider outsourcing certain new duties

If your business is growing but you want to manage your costs to make sure they’re not outpacing your growth, then labor costs are going to be the very first that you should look more closely at. Instead of hiring new team members, you should look at outsourcing. You may at some point want to move all of your labor internally, but outsourcing can help you take on new responsibilities without costs that are quite as high.

Lease new assets instead of buying them

Your growing business might not be able to afford to simply stop new expenses, especially if you are going to need to rely on assets that you haven’t bought, yet. However, instead of buying them, you can make the initial costs of them a lot more manageable by leasing those assets instead. Software like Quarem can make it much easier to track the costs of your leased assets to make sure that you’re able to keep them as cost-effectively as possible. When it comes to work equipment, buying will always eventually have a lower total cost of ownership, but if you need a short-term reprieve from those costs, leasing can help a lot.

Take a look over your contracts

Look more closely at the services you pay for to help your business run effectively. Whether it’s service providers, suppliers, leasers, or otherwise, you should make sure that you’re not locking yourself into a contract that no longer works in your favor. You can negotiate your contract with your existing provider or if you can find no wiggle room, you can use sites like InsureOn that can help you new find new providers for insurance, as just one example of the kind of service you could switch up to help you save.

Consider changing your working space

Aside from labor costs, the cost of the workspace that you use can be one of the largest overheads that you have to deal with. Downsizing comes with some initial cost, but it’s becoming easier than ever thanks to the growing habit of remote working. You don’t necessarily need to move from one long contract to another, either. Moving your team to a co-working space could help you avoid the big costs that come with moving into a new space until you know exactly how you’re going to work and situate your workers in the future.

With the tips above, you should find some means of managing your overheads without sabotaging your business. At some point, however, you may have to look at which costs you need to cut entirely, so always be planning ahead.

3 Things That Could Curtail Your Career As An Entrepreneur

Collaborative post – may contain affiliate links

So, you’ve decided that 2019 is going to be your year. This will be the year in which you shake off the shackles of employment and smash the glass ceiling that has restricted your ambitions for too long. This is the year in which you’re finally going to go into business for yourself. You’ve already started formulating your business plan, costing up your cash flow projections and carrying out some rudimentary market research. You’ve started making appointments with mentors and business angels and it’s looking increasingly like this germ of an idea you doodled in your margin on a particularly frustrating work day might just be a viable business endeavor.

This is an exciting time, but it’s also kind of scary. After all, you’ll be venturing into uncharted territory and the decisions you make in your first year of trading will have far-reaching and long-lasting repercussions for your nascent business and your personal life.

Watch out for these potential threats that could curtail your entrepreneurial career even before it’s begun…

Burnout

Long hours and a punishing schedule are to be expected for new entrepreneurs but even those in the early stages of running a business deserve at least a semblance of work life balance. Entrepreneurial burnout is a real problem and can have disastrous consequences both for your business and your personal life. Burnout can impair your judgment, make you less able to make even simple decisions and make you short tempered and emotionally volatile.

If you’re to avoid burning out it’s vital that you take sufficient time away from your business and find positive ways to manage your stress.

Trying to keep it all in house

When starting out you’ll likely have a clear idea for your operational parameters. You’ll want to do things your way as this will be at the core of what makes your brand and your business stand out from your competitors. And while this is certainly admirable, be wary of keeping everything in-house. Not only can it put unnecessary pressure on you and your employees it may not even be the most cost efficient way of operating.

Entrusting certain areas of your operation to outsourced service providers can save you time, effort and money without compromising what makes your business unique. Click here to read more if you’re curious about what outsourced service providers can do for you.

Borrowing more than you need

The last thing your business needs is for its cash flow to be inhibited by a millstone of debt. By all means borrow enough to allow you to do what you do as well as possible but be wary of excessive borrowing.

Your cash flow will be one of the most important deciding factors in whether or not your business stays afloat. It will determine your ability to pay your vendors and your employees on time or be able to afford the kinds of capital investments that will facilitate your growth.

The more you borrow, the more your monthly business loan repayments are likely to chip away at your profit margins and make your cash flow harder to manage.

One of the finest lines you’ll have to walk is investing sufficiently in your business while also keeping your overheads manageable.

Steer clear of these common threats, however, and business success is within your grasp!