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In the modern business environment, every business needs complete multi-department functionality. You need legal and financial compliance oversight, a full-stack IT team to set up your secure business network, a digital marketing presence, and the core team that actually operates your business’ core function. So it’s no surprise that keeping overhead how for small business startups has become a serious challenge.

For small businesses across all sectors including retail, service, healthcare, and software-as-a-service companies, you don’t have to go over budget to cover all your bases. Let’s explore eight of the best ways to keep your overhead low as a small business team.

1) Outsource to Specialist Teams

You don’t need to hire every person you need on-staff. This is good because the number of specialist services a business needs has multiplied in the last few decades. Instead, small businesses in all sectors are now outsourcing entire departments that they don’t keep on staff – at a much lower price for custom-scaled and as-needed services.

In IT, you might hire an MSP or Managed IT service. In finance, you might hire a “fractional CFO”. In marketing, you can hire a digital marketing agency. Or you can choose a platform that provides these functions as-a-Service.  Prioritize the team your small business needs and outsource the rest of your departmental needs at a discount.

2) Automate to Multiply Effort

Use software and automation to multiply the efforts of your onboard and outsourced teams. Your marketing team can be empowered by email and social media automation. Your HR department can streamline using the right management software to make their diverse duties routine. Backed by timed routines, AI-powered algorithms, and even chatbots, your team can do a lot more with their limited hours in a day.

3) Secure a Business Line of Credit

You don’t have to handle every expense directly out of your revenue. Smooth your finances and reduce the risk of unnecessary operational costs with a floating business line of credit. Like a credit card, this is a line you can pull from and pay off as-needed instead of a finite small-business loan.

4) Get Efficient About Ergonomics

Ergonomics is the study of efficiency in the workplace. An ergonomic chair holds the body in a position that reduces stress points and maximizes time someone can spend sitting and working. In a floorplan, ergonomics facilitates easy movement and smooth traffic. But in business operations, applied ergonomics can help you identify inefficiencies, pain points, bottle-necks, and then find the best way to empower, streamline, or equip your team at each point.

5) Go Green on Consumable Supplies

One very popular option for reducing office overhead is to “go green”. Once thought a costly gimmick, the digital tools are now available to truly cut disposable products and resupply expenses from your overhead costs.

6) Get Started Renting Instead of Buying

You don’t have to buy your first office, or even the large equipment you need to operate your business. Many startups begin by renting their biggest expenses. If you have revenue turning over but don’t have the deep wells of investment capital to buy your own location or equipment yet, don’t worry about it. Instead, focus on business growth beyond the costs of leasing until you are ready to buy.

7) Develop Business Partnerships to Pool Resources

Many of the expenses of a small business like marketing and even supply chains can be lessened when you team up with other small businesses. Form an alliance with other local businesses and practical brand partnerships to share costs wherever possible.

For the financial resources, your small business startup needs to operate and grow, contact us today.


This article is for general information purposes only. It is not insurance, tax, legal, business, or other advice. For specific insurance questions related to you or your business, please contact our office.