Trimming Overhead Costs
High overhead expenses can strain a firm’s cash supply to the breaking point. Business owners can trim their overheard costs in a number of ways:
- Lease instead of buy. Automobiles, computers, equipment and other assets can be leased and will help you to avoid large capital outlays frequently regarded as down payment.
- Avoid nonessential outlays. Ostentatious office equipment and flashy company cars can be forgone to make efficient use of the company’s cash.
- Control employee advances and loans. Only grant advances and loans that are necessary, keeping records on payments and balances.
- Establish an internal security and control system. This helps to avoid problems such as employee theft.