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Financial Success. Business Success. Investment Success. Smart Strategy for Successful Entrepreneurship. Make Money Online Tips. Tools for Money Success. Online resources for Smart Managers and Entrepreneurs.

Saving Money on Your Business’ Overhead by Downsizing Space

When a business looks to cut costs, its managers often turn to overhead expenses – those expenses that are not directly involved in the production of the company’s goods or services. For a small startup firm with just a few employees, overhead costs and minimal and most expenses are directly related to production. For larger companies, however, overhead expenses tend to grow regularly as more work space and employees are needed. Often times this overhead reflects an essential and necessary expense. But just as often it includes bloated costs that are prime candidates for reductions.

If you’re a small business manager looking to save money, assessing your overhead expenses is a great place to start. And, when you do that, one of the best ways to realize efficiencies and reduce overhead is by downsizing your company’s office space. Rent is expensive, as are the utilities needs of larger offices. Moving to a smaller place and reducing your rent can translate into solid savings.

But you may be wondering to yourself: My business always uses all the space in our office. How can we possibly downsize? This is certainly a legitimate question. Employees, files, and reception area cannot simply be eliminated. Sure, you can lay off some of your workers, but we’re assuming here that you want to keep your business the same size even as your occupied space becomes slimmer. What to do?

Here are a few suggestions:

Go paperless. If a good deal of space in your office is taken up by files and other print documents, digitizing these files and going paperless can save a considerable amount of space. With all the cloud computing options available these days, this is not a particularly difficult move to make.

Use storage. Renting out a unit at a self storage facility is going to cost you less, on a square foot basis, than storing those same items in your office. If you have files, furniture, or pieces of equipment that are not regularly used, this may be a decent option to keep in mind.

Telecommute. If you have certain employees that can afford to work from home, having them telecommute can allow you to remove a desk from your office. If you have no employees that can telecommute all the time, you can still reduce desks by having some employees work from home on a rotating basis. A telecommuting policy can also help reduce other productivity costs.

These are just a few of the ways you can reduce office space, thereby decreasing overhead costs and saving your business some money. If you’re looking to reduce expenses but don’t want to sacrifice workers or output, such a reduction can be a highly useful one to consider.

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