Overhead Costs: Lowering Expenses Without Sacrificing Productivity
Overhead costs are a major concern every business. For small and growing businesses, keeping track of where every dollar is going can become a point of stress, and overhead expenses can even lead to cash flow problems. Fortunately, there are a few things every business can implement to lower overhead costs without sacrificing quality and productivity.
Hiring Contractors Lower Overhead Costs
Conventional thinking has stated that having full-time employees makes for a strong team comprised of people who are invested in the success of a business. However, hiring contractors offers a number of advantages. First and foremost, hiring contractors lowers overhead costs because business owners do not have to pay unemployment taxes or provide paid vacations and other benefits. Additionally, contractors are more results-oriented instead of process-focused, which means tasks are completed efficiently and inexpensively.
Interns Offer A Mutually Beneficial Solution
To lower overhead costs drastically, consider hiring interns. Interns may not be the people you want ot hire for executive positions, but they can help streamline the administrative and low-level tasks that eat up time and resources for paid employees. By taking on interns, you are getting eager and willing employees who will work for job experience to build their own C.V.s while they attend college and work training programs.
Purchasing equipment is a fairly expensive transaction which has the added burden of depreciation, which decreases the amount which can be claimed as deductibles when filing taxes. Purchasing equipment also makes very little sense for businesses in industries which rely on technical advancements to perform jobs more accurately and efficiently, or businesses which place a lot of wear and tear on equipment. Leasing equipment provides a much simpler and less expensive method for getting the tools, vehicles, machinery, and technology needed to conduct business, without having to spend more on maintenance, or having to deal with depreciation. Leasing equipment lowers overhead expenses while also giving businesses access to the very latest equipment at affordable prices.
AR financing lowers the cost of maintaining an accounting department by immediately converting invoices to working capital while also eliminating the need to track staggered payment schedules across multiple client accounts. AR financing removes the need to perform collections, and provides a debt-free source of capital designed to improve cash flow and allow entrepreneurs to accumulate growth capital.
If your business is looking to lower overhead costs while getting access to affordable financing solutions, contact BG Capital Funding Group today.