Despite the surge in popularity of working from home, working in an office has a lot of advantages. If you want to work in an office, however, you’ll need to be prepared to keep office-related costs under control. If left unchecked, office costs can quickly skyrocket and destroy your budget, reducing your profitability with no real other advantage.
So what steps can you take to reduce office expenses?
Do You Truly Need an Office?
First, think about whether you truly need an office. Remote work comes with a number of advantages, including higher morale and productivity. More to the point of this article, it also practically eliminates all expenses associated with running an office.
However, some companies benefit enormously from having an office in place.
- Office benefits. Some businesses benefit from having an office because of the physical exposure it gives them; an office building downtown can serve as a form of advertising, and visiting a luxurious office can form a good impression with new clients.
- Team dynamics. Some teams perform much better when they can work together in person. Being able to see and interact with your teammates on a regular basis can lead to a stronger sense of work culture and lead to more efficient collaboration.
- Alternative and hybrid options. Your choice is not binary. You can choose to operate remotely some of the time, while having an office in place for other situations. You can also establish an office for only some of your team members.
Reducing Office Costs
If you decide to move forward with an office, these are your best strategies for reducing office upkeep costs.
- Use the right inventory management software. Office inventory management software is designed to help you track the crucial office supplies you need, help you manage purchases, and even help you track spending. Certain office related expenses pile up quickly if you’re not actively monitoring office supply usage or if you’re buying from the wrong vendors. With the right software assisting you, you should be able to make better purchasing decisions, identify sources of expenditure, and ultimately improve your financial position.
- Renegotiate the lease. Consider renegotiating the lease, especially if the lease is set to expire soon. Take a look at the costs of other properties near your area and evaluate other options in other areas. Rent is often one of the biggest expenses of keeping an office open, so it’s also your biggest opportunity to save money. Talk to your landlord or property manager about reducing the rent or mitigating the cost with an alternative arrangement; sometimes just asking is enough to get you a reduced rate.
- Sublease the space. Depending on your current arrangement, you may be able to sublease your office space. Essentially, this means you’re going to rent a portion of your office space to another business. They’ll pay you rent, offsetting some of the costs of your own rental, and if you choose a business related to yours, you may be able to work together on some projects.
- Buy refurbished. When possible, consider buying refurbished. Refurbished electronic devices tend to be almost as good as new, but they’re much less expensive, and you’ll run into fewer supply issues.
- Monitor technology costs closely. Some of your biggest expenses will be related to technology. New computers, phones, printers, and even your internet service package can drain your budget quickly if you’re not careful. Only buy what you truly need and resist the temptation to overload on these electronics. Additionally, you should consider reducing technology expenses by shopping for devices that are one or two generations old.
- Go paperless. Going truly paperless can be difficult, since we use paper for all kinds of things (including going to the bathroom), but any effort you make to reduce your paper usage in the office can be valuable. Paper costs probably aren’t what’s going to bring your business down, but they’re also fairly easy to reduce or eliminate. Go digital whenever possible.
- Audit your energy use. Audit the energy use in your office. If you’re spending hundreds of dollars a month on things like electricity, gas, and water, it may be in your best interest to take corrective action. New appliances and fixtures, along with better energy saving habits, can reduce these ongoing expenses.
- Consider relocating. If you’re having trouble making ends meet, or if it feels like you’re paying far more then you should, you may consider relocating your business entirely.
No matter what, you’re likely going to pay thousands of dollars per month to keep your office up and running. But with the right strategies in place, you can prevent your office expenses from totally eclipsing your revenue, and maximize your chances turning a profit consistently.
