How to Smartly Manage Your Overheads

If you own a business, naturally you want to use your invested capital better by managing overheads smartly. For this, we at Activator Consulting have a few tips and tricks that might help you.

The key to smart management of money is knowing where it goes. First of all, know that there are two types of overheads: the variable expenses and the fixed ones. The variable expenses keep changing as per your workload, product development, and other factors, whereas fixed costs are those like bills, salaries, leases, insurance costs, and others. We’ll break down some of the elements that cost overheads and how they can be optimized.


If your leasing cost has suddenly increased, you can communicate with your landlord and change your lease into a turnover rent. This means the rent that you need to pay is based on the turnover of your business. Many landlords agree to this agreement because it can mean potential profit for them anytime your business does well.


Your insurance bill can also increase and that means having to pay a large sum every month so you can consider putting your insurance out to tender. This process usually means that you pick a couple of brokers and they source various suppliers to get the best prices.


Every business needs to advertise their products and services, and usually a lot of capital is spent on it but that doesn’t mean you can’t be efficient about it. The first step to spending smartly on ads is by data analysis. You have to analyze which marketing strategies are working for your business and cut down those that aren’t. Moreover, choosing multiple advertising techniques at random can waste a lot of money so it is best to develop a solid marketing plan and stick to it consistently. Targeted advertisements fare better so that should be a priority as well. Moreover, play it smart by first sticking to cost-effective advertising techniques and then move up from there as your business progresses. Direct marketing is also more cost-effective than mass indirect advertising. And lastly, always strive to get free publicity – enhance customer relationships so you can increase your chances of customer referrals and recommendations, etc.

Suppliers and Vendors

It is good to have long-term relationships with suppliers but every so often they should be analyzed and you should always keep an eye out for other vendors who can provide cheaper quotations and help you save money.


In the age of automation, your business can benefit financially choosing smart technological options. In many cases, they can help reduce employee requirement and reduce cost on wages.

Consultancy and Analysis

Often, the best solution to managing your overheads is via the help of professional consultants who can apply years of experience to the benefit of your business. Activator’s business experts work with businesses to optimize their overhead costs by using extensive analysis techniques and monitoring your monthly costs.

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