On Keeping Those Overhead Costs Low
Talk about low overhead!
Over at AllBusiness.com they’ve got some short video clips they call Small Business School. Most are only a minute or two in length, so unfortunately they are more entertainment than useful advice. But still, you can find a few good nuggets, such as in one video called “Keep Your Overhead Costs Low.”
It features the owner of a construction company whose first office was “in a phone booth.” Literally. The company used a phone booth, and the gas station attendant would answer calls. Each week they’d tip the attendant.
Of course these days you could get a mobile phone and a super-powered voice mail system with an automated attendant to answer calls. No need to do the phone booth thing.
But the point remains valid. Keeping your overhead low is especially important as the economy gets tighter. Overhead costs creep up on you. $950 here, $1500 there — keep piling it on and before you know it you’ve eaten up your profit margins.
March 22nd, 2008 at 6:50 pm
That was a fascinating video clip!
Our start-up company has had pretty high overhead costs with rent for a facility with office space, computers, café, conference area, etc. We wanted to create a “third place” for the entrepreneur and business minded individual. Our phone system was state of art with quality of service control, dedicated IP address and several phone numbers and computerized switch board, WLAN for customers, etc.
We have learned the lesson with high overhead costs and that it takes longer time to reach your daily volume than you plan from the beginning. We will in the future reach out to already established meeting places, like coffee shops, business centers, incubators, etc., and invite them to join our business network.
All the Best,
Martin Lindeskog
Blue Chip Café, Business Center & Community.
“Biz & Buzz in a Cup.”