Business overheads can cause unnecessary financial strain for business owners. It’s easy for these additional costs to go unnoticed and as a result, it diminishes profits that could have been used to grow the business even further. If it has been more than 3 months since you’ve reviewed your overhead spending, now is the time to take a look at how your organisation’s money is being spent, so you can streamline your expenses and improve your organisation’s profit margins.

Here’s a small checklist that you should run through.

Productivity and cost levels related to your building’s lease.

Is the location of your business creating a positive or negative impact for your business? For example, your business might be operating in a cheap, non-serviced office. However, due to the amount of time you need to spend managing the actual office, it takes you away from the tasks you need to dedicate yourself to so that you can grow the business.

Another scenario is that the location of your business actually drives away more business than it actually gains. So the $5000 savings costs actually cost your business $20,000 in revenue.

Alternatively, it is common for organisations to spend too much on their lease. This heightens the financial risk, since organisations need to find the extra income to cover the costs.

Check the lighting design setup of your organisation.

Typically, lighting accounts for approximately 15% of overhead costs for an organisation. The organisation could save a lot of money by implementing a better lighting design.

If your organisation hasn’t switched from incandescent lighting to LED lights, it will be the quickest and most impactful change for the organisation. Businesses that have made the switch see cost savings of up to 60% within the first 12 months. The costs pay-off for themselves and drastically reduce the lighting overhead costs over the long-term.

Secondly, the building design can improve the use of solar lighting. Changes in the window or door designs or indoor designs can really light up spaces and minimise the need for artificial lighting.

Encourage energy-saving habits within your organisation.

Encourage your staff to improve their energy-saving habits. This might see them investing in more energy-efficient technology such as eco-friendly printers or computers. Additionally, they can conserve energy better by switching off lights and electrical equipment when they aren’t in use. It is common for items such as computers and lights to be left on overnight, even though they are not being used.

Do an audit of your organisation to see where any positive changes can be made. If you would like some more insight, get in touch with one of LEDified’s specialists today!