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Overhead Overhaul: 4 Ways To Save On Operating Costs

Overhead reduction save operating costs frugal entrepreneur bootstrap business lean startup bootstrapping

One of the best ways to make money is to avoid spending it in the first place. It can be hard to find ways to cut costs without passing up opportunities, but there are a few methods that consistently work. They all take a little bit of effort, but that effort can pay big dividends in the long run. 

1. Use HR Software 

Labor is always expensive, so it's a good place to start when the time comes to cut costs. The best way to do that is to automate processes to reduce the amount of work needed to do a job. The Human Resources department is a great candidate for this, since there are a variety of modern software programs that can automate large parts of the process. 

The average HR worker spends most of his or her day on administrative tasks, like tracking payroll and attendance. Doing it by hand can take a long time, but using human resources software means the computer can handle most of the bookkeeping—with minimal human oversight. That cuts down on labor time and allows the HR worker to spend his or her time on tasks that require human judgment. Human resource management programs can also combine different tasks into a single program to save time on switching between filing systems. Automating processes can be especially helpful in small businesses, which often seen employees taking on a number of different tasks and responsibilities. Automating HR tasks can free these valuable employees up to work in other areas that bring profits directly into the company. 

2. Consider A Paperless Workflow 

Paper may seem cheap, but it hides several other costs. The price of printing a single page is usually trivial, but hundreds of pages add up very quickly. Some of that cost comes from the paper and ink themselves, but printer maintenance can also get expensive. Papers need to be filed somewhere safe, which means paying for more office space. Employees who need to find a specific paper need to sort through the filing system, which takes up time that could be better used on other tasks. Those costs add up, but it's easy to get rid of them. Digital storage space is cheap and quick to search, so there's very little reason for most businesses to stick to paper—though some forms are required by law to be kept in hard copy. It won't lead to huge savings, but it can still make a meaningful difference for the company's bottom line. 

3. Control Energy Costs 

Going green can be just as good for a company's budget as it is for the bottom line. The energy costs from heating and cooling an office can be significant, but it doesn't take much to reduce them. Something as simple as closing the shades when it is hot during the day can reduce the rate at which heat enters the office, which cuts down on cooling costs. Automating the thermostat so that nobody accidentally leaves the air conditioning on after everyone has gone home can also save a surprising amount of energy. Renovations, such as installing energy-efficient windows, can be worthwhile in the long run, but many of the most effective methods are completely free. 

4. Optimize Your Advertising 

Advertising is essential for bringing in new clients, but it can also get expensive. Fortunately, it's possible to cut costs by focusing on the cheaper forms of marketing while still getting similar results. Social media marketing can get a message out to a lot of people, and posting that message is usually free. Search Engine Optimization for a web page is also relatively inexpensive compared to other methods, but it can bring in a lot of potential customers to a website. 

Modern technology offers plenty of ways for clever business owners to cut down on their operating costs. There are no magic solutions that can lead to massive savings on their own, but there are a lot of smaller options that can lead to significant improvements when they are used together.


I hope you enjoyed this article about ways to reduce your company's overhead and save on business operating costs.

Interested in more business management articles?

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Best Of Luck In Business To You All!

Overhead reduction save operating costs frugal entrepreneur bootstrap business lean startup bootstrapping

Michael J. Schiemer of Schiemer Consulting
Digital Marketing Manager & Social Media Professional
HootSuite, HubSpot, & Google Analytics Certified
Bootstrap Business: Money - Marketing - Motivation
Mike Schiemer Builds Better Business

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