More Ways to Lower Overheads and Make Your Business More Competitive

Tue, May 23, 2017

Budgeting, Financial Advice

In today’s competitive market, staying competitive is everything. You can’t expect to remain profitable in a saturated market without having the right competitive advantages against other businesses in the industry. Aside from making improvements to the products and services you offer, one of the best ways to remain competitive on the market is by keeping your overhead costs in check.

Overhead costs will determine just how flexible you are when competing against other businesses. Low overheads mean you can be more flexible with pricing and have better control over your operations. Here are some of the things you can try to lower your overheads and remain competitive.

Keep It Lean

This is a common problem with startups and small businesses. As soon as you find an investor or have the ability to tap into market growth, you’re tempted to invest in more employees, a nicer office, and other unnecessary things. These investments may seem like a good idea at first, but they will soon affect your overhead.

A bigger office, for example, could lead to a higher energy bill. More employees mean more salary and benefits to pay. A bigger manufacturing line can quickly lead to less-than-efficient production that will bring your prices up unnecessarily.

Staying lean is the key to remaining competitive. I’m not saying you shouldn’t expand your operations. I’m simply pointing out that the decision to expand the business must be taken when the time and other factors are right, in order to avoid increasing the overhead costs unnecessarily.

Optimize Business Processes

There are plenty of IT solutions that can be used to help streamline business processes. Simple cloud-based solutions such as SalesForce, for instance, can really help your entire sales team work more efficiently in and out of the office. There are also collaborative platforms, as well as customer IT solutions, that can be implemented for better optimization.

Before you invest in a business solution, make sure you take the time to do a complete process modeling. Platforms such as Bizagi offer a completely different take on Business Process Model and Notation or BPMN. The platform itself can be used to model business processes and create actual solutions that work for your business.

There are even pre-made models you can base your business on, so flows of activity in different units within the business can be improved based on existing, highly-optimized standards. Taking the time to do process modelling can lead to optimizations across the business.

Be Mindful of Your Assets

You don’t have to buy every single piece of equipment you need to maintain smooth operations of the business. In fact, buying is not always the best way to go. There are plenty of rental companies that offer access to the best, latest office and business equipment for reasonable rates.

Renting allows you to save on maintenance and depreciation as well. Since the costs of renting equipment are very manageable, you can also choose to scale your business according to market conditions. This is the kind of flexibility you need to succeed in today’s competitive market.

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