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.