Operating costs continue to climb while profit margins shrink, creating intense pressure to find immediate savings. The knee-jerk reaction for many business owners is to reduce headcount after all, payroll typically represents the largest expense line item.
The most successful SMEs understand that their people are not just a cost center, but their most valuable competitive advantage. This week’s Let’s Talk features our experts share battle-tested strategies that protect jobs while significantly improving bottom-line performance.
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Damien Sheehan, Country Head of Australia, International Workplace Group
“As businesses increasingly adopt flexible working models, many are finding that traditional office spaces no longer align with their needs. Why would you pay for additional workspace that is only being 50% utilised along with the inflexibility of a long term and costly lease. Adopting hybrid working models and utilising flexible workspaces that includes locations closer to where employees live can help SMEs reduce overhead costs while fostering a more flexible and engaged workforce. International Workplace Group’s recent research has revealed that four in five CEO’s and CFO’s say that hybrid working is playing a crucial role in their cost saving strategies. Further, two thirds are scaling back or planning to reduce operating costs.
“SME’s are turning to hybrid workspaces for their workplace agreements, to reduce their overheads on traditional office space without cutting staff. For SMEs, transitioning to hybrid workspaces offers a practical solution, providing the benefits of a traditional office while reducing overhead costs. Hybrid working gives employees the freedom to work in a way that suits them, boosting their overall wellbeing and leading to a happier, more engaged workforce.”
Takanori Nishiyama, Vice President APAC & Japan Country Manager, Keeper Security
“Cybersecurity incidents have caused major financial losses for small and medium-sized enterprises (SMEs) across APAC, including Australia. In 2023, Australian SMEs reported average losses between AU$46,000 and AU$97,200 per incident¹. A PwC study found that 57% of APAC SMEs suffered a cyber incident last year, with one-third losing over US$100,000². From compliance penalties to recovery costs, breaches can overwhelm lean teams – and even threaten survival. Instead of cutting staff, SMEs can protect their margins by minimizing cyber risks. A zero-trust Privileged Access Management (PAM) approach – combined with traditional defenses – offers a practical, cost-effective way to prevent attacks and reduce IT overhead, including help-desk support tied to password resets, which account for up to 50% of tickets³.
“Zero-trust PAM verifies every user and action, limits lateral movement and restricts access to critical systems. When paired with AI-driven threat detection and passwordless authentication, it helps SMEs defend smarter – not harder – reducing the burden of incident response and compliance reporting.
“SMEs don’t need to downsize to survive. With a scalable zero-trust strategy, cybersecurity becomes a business enabler– one that protects data and people.”
Shaun Broughton, Managing Director, APAC and Japan at Shopify
“Reducing overhead doesn’t have to mean cutting your staff. A more sustainable approach is to eliminate the busywork that eats into time and budgets.
“With 61% of retailers planning to increase investment in AI and 64% in automation according to the 2024 Australian Retail Report, it’s clear the right technology can drive efficiency. Shopify’s approach to declarative commerce—where businesses set the intention and technology handles the execution—helps businesses do just that. Tools like Sidekick and the new Horizon design foundation, for example, enable businesses to launch sales, build product bundles or redesign storefronts in a few clicks of a button, helping teams move faster and more efficiently without compromising quality.
“By automating admin and simplifying workflows with AI tools, retailers can reinvest time and capital into what matters most: growing their brand, delighting customers, and scaling sustainably.”
Terry Maiolo, Vice President-General Manager APAC, OVHcloud
“As more SMEs move to the cloud, many are discovering their budgets are being stretched without a clear reason why.
“From a tech perspective, one area which may accumulate hidden costs is data storage via cloud computing providers. This may occur because of overprovisioning, meaning setting up more storage resources than are needed. It is a common side effect of wanting to move fast and build for growth. But over time, those unused resources can quietly drive-up costs.
“That is where right sizing comes in. Right sizing is about making sure your cloud environment matches what your business uses. By reviewing current usage, identifying idle or oversized virtual machines, and using analytics tools to fine-tune performance, your business can reduce waste without sacrificing reliability or performance.
“Right sizing is an ongoing process: monitor workloads, adjust as you grow, and keep performance and cost in balance. Sometimes it even means looking at your provider and asking if there is a better fit elsewhere.”
Greg Wilkes, CEO of Develop Coaching
“In today’s construction climate, where material inflation, compliance demands, and financing costs continue to pressure margins, reducing overhead without cutting staff is not only possible—it’s essential. For SME construction firms, the key lies in tightening systems, improving cash flow, and enhancing internal capability.
“First, streamline operations through robust SOPs. When every task—from quoting to client updates—is systemised, projects run smoother and errors drop, eliminating costly inefficiencies. Implementing project management tools help enforce these standards across teams.
“Second, adopt a 90-day rolling cash flow forecast. This keeps spending intentional and proactive, rather than reactive. Pair that with faster invoicing and tighter supplier terms to boost working capital without resorting to layoffs.
“Third, shift from reactive to proactive hiring. Investing in internal leadership development reduces recruitment costs and increases staff retention. Empower team leads with KPIs and decision-making thresholds—freeing up the owner from day-to-day micromanagement.
“Lastly, reframe pricing. Package services around client outcomes, not hours worked, and guard your 25%+ gross profit. This allows you to fund overheads like training and wellbeing initiatives while staying profitable.
“Cost-cutting doesn’t have to mean job cuts. With strategic focus, SMEs can become leaner, smarter, and more resilient without sacrificing their team.”
Emma Seymour, CFO at Deputy
“Shift-based businesses are constantly battling operational overheads — from managing rent and utilities to payroll compliance and staff scheduling. In people-driven sectors like retail, hospitality, healthcare and services, where employees are the heartbeat of operations, maintaining optimal workforce productivity and headcount is a delicate balancing act.
“In times of economic uncertainty, SMEs may be forced to cut staff as a first step in cost control. However, this overlooks a strategic opportunity: improving operational efficiency. In high-pressure, human-centric environments, getting the most out of your workforce is about making smarter use of available human and technological resources.
“That’s where technology can make a real difference. Workplace platforms like Deputy, with their labour demand forecasting, enable businesses to precisely understand and respond to fluctuating demand. Whether it’s anticipating a midweek lull or preparing for a major event surge, this technology provides the required insights without the guesswork.
“By automating routine tasks like rostering, managers gain back critical time to focus on what really matters: leading teams, supporting staff, and driving long-term performance. In fact, 78% of shift workers want their employers to invest more in digital tools to help them perform their jobs more effectively.
“Ultimately, when operations run more smoothly, everyone benefits: businesses see stronger employee engagement and higher talent retention, while enabling staff to do their best work that keeps businesses moving forward.”
Felix Wong, Director of Net Zero at Wattwatchers
“For SMEs looking to reduce overheads without cutting staff, energy efficiency is a smart place to start. Too often, power bills get treated as a fixed cost; paid, then ignored. But unnecessary energy use is a profit drain, and with electricity prices rising, that’s a cost most businesses can’t afford to overlook.
“You don’t need a big budget or fancy tech to make an impact. Start by using smart meters to pinpoint where your power is going. Often, the savings are hiding in plain sight, like equipment left running after hours or outdated server setups chewing through electricity. Switching to cloud platforms and automating lights or devices outside business hours can cut costs fast.
“Even better? Involve your team. When staff can visualise how small actions, like switching devices off properly or adjusting air-con can add up, savings become a shared effort. And don’t forget to explore local council programs. Many offer free audits or subsidised upgrades designed just for small businesses.
“The bottom line: you don’t need to slash headcount to cut costs. A few low-cost changes to how you use energy can take real pressure off your bottom line without putting jobs on the line.”
Craig Stockdale, Managing Director, ANZ at Wasabi Technologies
“For SMEs who run on lean budget structures, cost management isn’t just about bookkeeping, it’s a strategic lever that can amplify efficiency, help to make informed investments, and capitalise on existing costs.
“When making difficult cost-cutting decisions, it can be tempting to look at headcount first but there are often more targeted ways to reduce spend that avoid team disruption and support long term growth.
“As businesses accelerate their digital transformation and handle increasing data volumes, refocusing attention to areas such as costly technical stacks, can be a smarter way to optimise budgets. For example, when it comes to cloud storage, many Aussie businesses are paying far above what they actually need and end up getting hit with unexpected fees if they wish to take their data elsewhere. Switching to solutions with a flat fee, predictable pricing model can ensure immediate savings without draining efficiency.
“The same logic can be applied to software, subscriptions, and even office space. So, before considering cutting workforce, businesses should focus on consolidating services to provide their people with better tools, so they can spend more time on work that grows the business.”
Dale Dixon, General Manager, MYOB
“Our latest MYOB Bi-Annual Business Monitor survey of 1000 SMEs found operational costs continue to cause significant pressure for small and mid-sized enterprises (SMEs), with the cost of utilities (causing 28% a lot to extreme pressure) topping the list. While there’s uncertainty in the year ahead around the global economic landscape and impacts on local trading conditions, there are opportunities for SMEs to reduce costs when embracing technology-driven efficiencies.
“AI presents a major opportunity. MYOB’s Bi-Annual Business Monitor survey found just 23% of respondents use AI in their business, 11% have an AI policy in place and 9% have built AI into their products or service solutions. For those who have incorporated AI, the rewards are clear: 78% report a positive impact on their business. From smart forecasting to automating customer service, using products that have built-in AI can cut overheads while empowering staff to focus on high-value work.
“One of the most effective ways is to automate administrative tasks such as invoicing, payroll and reporting. This not only frees up employee time but also reduces costly errors. Gaining better insights into company spending through cloud-based accounting tools helps businesses identify waste, control expenses, and make more informed financial decisions.”
Debbie Elliott, Director of Operations at Bare Energy
“For many small businesses, energy costs feel like a set-and-forget expense. The bill arrives, it gets paid, and that’s that. But with electricity prices climbing, and the National Greenhouse and Energy Reporting Scheme in place, now’s the time to rethink that mindset.
“If your business runs mostly during daylight hours, like retail, hospitality, or clinics, solar paired with battery storage can make a big dent in your overheads. From 1 July, the government’s Cheaper Home Batteries Program will offer a 30% rebate on eligible battery systems (up to 50kWh). That means you can store solar energy during the day and use it when grid prices peak.
“Beyond that, look at simple fixes: smart meters to track usage in real time, switching off standby loads, and replacing old gas appliances with efficient electric ones. None of this requires cutting staff, but it does require paying attention to where money’s slipping through the cracks.
“The savings from even a few of these changes can stack up fast. And if you’re eligible for asset write-offs or green finance, you might not even need to carry the upfront cost.
“Cutting costs doesn’t have to mean cutting people. Sometimes it just means using energy smarter.”
Ryan Williams, Director of The Australian Centre for Business Growth
“Many SMEs are looking to tighten their belts and cut costs due to rising economic tensions. But what are their options?
“Reducing staff numbers can do more damage than good. Apart from being a morale breaker, it’s a loss of skills and experience. And when business picks up again you may miss opportunities because you don’t have enough employees available.
“Instead, taking a long, hard look at your Balance Sheet is a smarter way to unlock capital and cut costs. Conduct an audit by working through current assets line-by-line and ranking them. This will help you quickly decide which assets are inefficient or non-revenue generating. If an asset isn’t generating revenue, consider carving it out, or managing it differently to generate a return. Liquidating unused or underused assets can also unlock capital, as well as saving maintenance and storage costs.
“Another option is to negotiate longer payment terms for debts and payments due in the next 12 months. This unlocks additional cash for the business to deploy elsewhere.”
Jim Schuman, Co-Founder at First Pivot
“Small and medium enterprises can significantly reduce overhead costs while maintaining their workforce through strategic partnerships and operational efficiency. One powerful approach is collaborating with universities to create structured work placement programs. These partnerships provide fresh talent and perspectives while allowing your full-time employees to focus on high-value strategic activities.
“University students bring current knowledge, digital skills, and enthusiasm to routine tasks, freeing experienced staff for business development, client relationships, and innovation. This arrangement benefits everyone: students gain real-world experience, universities strengthen industry connections, and businesses access cost-effective support.
“Additional overhead reduction strategies include embracing remote work to minimize office space costs, implementing cloud-based systems to reduce IT infrastructure expenses, and negotiating better terms with suppliers through consolidated purchasing. Consider shared services arrangements with other SMEs for functions like HR, accounting, or marketing.
“The key is thinking entrepreneurially about resource allocation. Rather than viewing staff costs as fixed expenses, reimagine how work gets done. By leveraging partnerships and optimizing processes, SMEs can maintain their valuable human capital while creating sustainable cost structures that support long-term growth.”
John Harding, General Manager, Managed Services, Konica Minolta Australia
“Businesses can unlock savings by taking a strategic approach to operations, technology, and process optimisation. There are three key ways SMEs can reduce overhead costs without cutting staff:
- Prioritise digital transformation strategies
SMEs should look at underused technologies and inefficiencies in operational workflows. Integrating intelligent information management (IIM) systems reduces duplication and manual handling by creating a single, secure, and accessible source of truth. Automating common tasks like invoicing and document approval improves version control and compliance tracking while reducing time and error rates that contribute to bloated costs. - Invest in cloud migration
Transitioning high-impact applications like storage, communication, and collaboration tools to cloud platforms avoids the capital expenditure of maintaining on-premises infrastructure. A gradual, low-risk approach starting with document storage or productivity suites like Microsoft 365, Box, and OpenText generate immediate efficiency dividends while providing the scalability to adapt to growth. - Consolidate and optimise application stacks
Operating multiple standalone tools that aren’t integrated wastes time and duplicates effort. SMEs should invest in application ecosystems that share data and workflows instead to empower employees to work more effectively without increasing costs. Pairing these systems with structured training helps teams unlock the full value of the tools already in use.”
Alexandra Egan, CEO/Founder at The Domino Effect Consulting & Facilitating
“Cutting Costs? Stop Blaming Staff.
“SMEs don’t need to cut people; they need to cut waste.
“Overheads are rarely about headcount. They’re buried in bloated tech stacks, manual processes, endless meetings, and outdated workflows. If you’re paying for three apps that do the same thing or spending hours reconciling what Xero can automate in seconds, you’re bleeding cash invisibly.
“The real shock? Most small businesses can reduce overheads by up to 15–30% without touching a single salary.
“Start with a ruthless audit:
- What are you paying for that’s no longer adding value?
- Map your workflows.
- Automate what you can.
- Kill time-wasting meetings.
- Cross-skill your team.
“Before you let go of people, let go of inefficiencies.
“Don’t shrink your team; sharpen your operations and cut what’s costing you progress.”
Peter Curran, Founder & Business Development Manager at Digital Surfer
“What you often see businesses do when they’re reducing overheads is start to cut down their marketing as these are often higher, monthly recurring costs. However, as this is where your business and leads are coming from, it shouldn’t be a matter of cutting, but analysing what is effective and what’s not, and re-aligning that budget.
“It makes it a lot easier if you have a digital marketing provider who you can have that discussion with who can analyse your data for you to take some of that pressure off your plate, and ensure you’re targeting the right, high-value areas for your business. They can translate how that particular avenue is generating your revenue, or where it may be a crucial brand exercise to claim your digital space.
“We also tell our clients being transparent as possible will help us get the results you need. If there’s an area of your business that is quiet, we can shift the focus there to help support you in that area. For example, if you provide electrical and air con services but your air con services dip at a particular time of year, we can re-adjust your strategy to bolster that drop as much as possible. By readjusting instead of cutting, you get that revenue you need to stop the crisis mode.”
Grace Savage, Brand & AI Strategist, Tradie Agency
“The smartest way to cut overheads without losing people is to turn staff into value drivers, not expenses.
“Start by training every team member to think in terms of sales, marketing, and efficiency. Your front desk? They’re in charge of collecting Google reviews. Your tradespeople? They’re in charge of upselling, referral requests, and customer experience. When staff take ownership of growth, they become too valuable to cut.
“Second, streamline admin with systems. Cut back on manual work: quoting, chasing reviews, writing follow-up emails, and bring in modern tools or AI to automate low-value tasks. Free up staff to focus on high-impact actions like building relationships and generating business.
“Third, shift focus to your most profitable jobs. Use the 80/20 rule to double down on services that drive real margins – not just revenue.
“Lastly, replace the “cut costs” mindset with an “increase contribution” culture. When staff have the tools, training, and permission to add more value, they’re no longer overhead – they’re your edge.”
JP Tucker, Co-founder / CEO, Optidan AI
“Cutting Costs Without Cutting People: How SMEs Can Rethink Efficiency with AI
“For many SMEs, rising costs lead to tough choices. But cutting staff isn’t the only option. A better approach is to optimise the work already being done.
“At Optidan AI, we help retailers reduce overheads by automating repetitive tasks like product descriptions, SEO updates, and metadata fixes. These jobs take time but don’t always need a human touch. With the right tools, teams can focus on strategy while AI handles the background work. One client reduced turnaround times by 90 percent, allowing their lean team to scale output without burnout.
“I saw the value of this during my time at Hello Drinks. We grew from 200 to 6,000 live SKUs without hiring a content team. We built internal systems that did the heavy lifting and freed up our time for growth. That same thinking powers our work at Optidan today.
“Cost-saving should not come at the expense of your people. By streamlining processes and applying technology where it counts, small businesses can grow faster, stay competitive, and make smarter use of their existing teams.
“This is not about replacing jobs. It’s about making the most of the team you already have.”
Paul Duggan, CEO of Money.com.au
- “Leverage technology & AI agents as virtual employees. More companies are embracing this approach to drive performance and productivity. By automating repetitive tasks and streamlining workflows, businesses can free up employees to focus on higher-value work, reduce reliance on external contractors, and lower operational costs without reducing headcount.
- Implement checklists for process replication. It’s not sexy, but a clear process backed by a simple checklist can have a huge impact. By standardising tasks and reducing errors or rework, checklists help save time and improve efficiency. This drives down operational costs by making better use of existing staff — without needing to hire more or reduce headcount.
- Enter into supplier negotiations to drive cost savings. It’s not just about securing the best price, but negotiating terms that suit your cash flow. If you have strong cash reserves, ask for discounts in exchange for early payment. If cash is tight, try extending payment terms beyond the standard 30 days.
- What gets measured gets done. Make sure there’s a budget in place, and that Key Performance Indicators (KPIs) are clearly set, monitored, and actively managed. Tracking performance in this way helps identify inefficiencies and improve resource allocation — all of which can lower costs without needing to cut staff.”
Rahul Bahl, Principal Consultant, ERA Group
“Cutting staff should never be the first answer to overhead pressure. At ERA Group, we help businesses uncover hidden savings without sacrificing their people.
“Here’s how:
- Audit Everything.
Most businesses leak money in places they never specifically check —subscriptions, utilities, insurance, logistics, even bank fees. A cost review can reveal 10–30% in avoidable spend. - Embrace Smarter Procurement.
Stop buying on autopilot. Consolidate suppliers, negotiate better terms, and switch to usage-based contracts where possible. Loyalty doesn’t pay—data does. - Automate Low-Value Tasks.
Use low-cost tech to handle routine admin, reporting, and follow-ups. Automation frees up your team to do what only humans can—grow your business. - Go Hybrid, Strategically.
You don’t need to pay premium rent to prove you’re professional. Hybrid or flexible office models reduce costs and improve work-life balance. - Partner for Scale.
Only outsource where it makes sense—IT, HR, compliance, specialist services. You’ll access top-tier expertise without the full-time cost. - Insource for better staff utilisation.
Bring services back in house where you have the staff and capability to get the work done. Make better use of your existing resource pool to get more done within the available resource capacity. - Review your processes.
Have a look at your processes and playbooks. Do you have steps that can now be eliminated and can free up your teams time to get more important things done?
“At ERA Group, we’re not in the business of cost-cutting—we’re in the business of cost-optimisation without sacrificing quality. Keep your team. Cut the waste.”
Alexander Laureti, Managing Director at LMS Advisory Pty Ltd
“As an advisor who has helped many businesses navigate tough times, I would not recommend staff as the first overhead to cut even if they are the biggest single contributor to expenses. Your people are your delivery engine. If a role is essential and the person in it is performing, savings here might affect future profitability. Productivity, effort and effectiveness is key.
“Widespread layoffs often reflect past mismanagement with bloated structures and poor accountability, not real-time cost control.
“Instead, apply a zero-based budgeting mindset. Start from scratch and justify every expense in your P & L.
“Ask: is this subscription necessary? Could I consolidate multiple expensive tools into one? Are we paying for unused software licenses?
“Review everything from direct debit arrangements to supplier terms and agreements. Don’t just cut — optimise. If a new automation can deliver 10x productivity, it’s not a cost, it’s a smart investment. Swap the spend.
“Finally, revisit your processes. Are there tasks done out of habit, not necessity? Trim what doesn’t drive outcomes. Build a business case for every dollar spent.
“The difference between profit and waste is the difference between staying afloat or sinking. Your business’s livelihood depends on disciplined spending — not blind cutting.”
Carla Penn-Kahn, CEO and Co-Founder, Profit Peak
“As a profit optimisation expert, here are three things I’d advise:
- To start, small and medium sized brands (especially those on Shopify) can focus on smarter operations and internal efficiencies. Effective inventory forecasting and management plays a key role, minimising storage costs from overstocked items and reducing the need for profit eroding markdowns. This not only saves money but also improves cash flow and long term profitability.
- Another area worth reviewing is the tech stack. Many businesses continue to pay for software that is either no longer used or offers overlapping features. Consolidating tools, particularly where one platform can handle multiple functions, can reduce subscription costs and simplify workflows. Regular audits of software usage can uncover immediate savings.
- Lastly, upskilling existing staff is also a cost efficient strategy. By investing in training, brands can expand internal capabilities, allowing team members to take on more diverse and efficient tasks. This helps reduce reliance on external contractors or additional hires, while also fostering a more agile and engaged workforce.
“In a competitive ecommerce landscape, reducing overheads does not have to mean job cuts. It is about working smarter, not leaner.”
Seamus Phan, CTO, McGallen & Bolden Pte Ltd
“In these difficult times, some businesses choose to retrench employees when there may be other ways to trim costs. One option is to reduce technology costs through open-source software (OSS) and bring control in-house.
“Rather than simply accepting the usual “big-tech” cloud solutions for productivity and management, SMEs can choose OSS and train employees to shift to these free-to-use software and build up in-house expertise.
“OSS is a great way to offer full-featured office productivity software to every employee, and LibreOffice is just such a suite for word processing, spreadsheets, and presentations without the need for ongoing per-user licenses. For SMEs with the need for accounting, ERP (enterprise resource planning), CRM (customer relationship management), and HRM (human resource management), there are OSS options such as Dolibarr and Odoo. For SMEs wishing to stake a claim with their own website, WordPress would be a great CMS (content management system) option to build extensible and secure websites, and even e-commerce capabilities should the need arise. If SMEs need a self-hosted email and calendar server, Modoboa would be an option.
“Although OSS empowers businesses and users, we must accept the initial challenge of learning and adopting OSS. It is worth it.”
Anna MacIntosh, Owner, M & Co Communications
“For an SME, reducing overhead costs doesn’t have to mean cutting staff. In fact, as a small business, protecting people should be the priority. There are smarter, more sustainable ways to operate leaner while preserving culture and client service.
“If the business model supports it, flexible and remote working arrangements is an effective strategy. By going virtual or sharing office space with other independents, SMEs can dramatically reduce rent and operational costs. This approach also supports employee wellbeing and productivity through greater flexibility.
“Another area where savings can be made is in shared resources. Essential agency tools like media monitoring platforms, PR databases and subscriptions can be expensive. Small business owners are increasingly finding value in joining forces to share these costs without sacrificing capability.
“These approaches reflect a broader shift happening across the industry. Rather than cutting corners, savvy SMEs are looking for ways to streamline while staying connected and competitive.
“Ultimately, keeping people at the centre of your business will lead to better outcomes. It’s not just about surviving but building smarter, more resilient businesses for the long term.”
Steven Nicholson, Founder, GearChange Business Advisory
“Small business cash flows have been suffering from a squeeze for some time now. Higher costs due to inflation and wage increases have combined with high interest rates and a cost-of-living crisis affecting consumer spending.
“If your business is looking to reduce costs without cutting staff, consider these tips:
- Take control of the business credit cards, pre-authorise all expenses
- Be brutal and remove the ‘nice to have’ expenses, retaining only the ‘must haves’
- Cancel subscriptions for marketing and IT software that are duplicates or not used
- Possibly reduce your office footprint by offering more work from home
- Negotiate discounts with suppliers for early payment, bulk purchases, guaranteed purchase levels
- Research new suppliers for large value cost items
- Look to switch energy providers when you can for a cheaper deal
- Get a competitive quote at renewal for your insurance and any other services providers
- Review your product lines and stop any that are loss making or very low margin
- Renegotiate loans to reduce interest payments
“Take a close look at each expense line in your P&L and be brave. Your business cash flow will thank you for it.”
Catarina Santini, Founder, CS Accounting
“Reducing overheads doesn’t have to mean cutting staff. It’s about working smarter. Start by reviewing all your recurring expenses. Subscriptions, software, insurance policies. There’s often low-hanging fruit you can renegotiate or cancel. Once you’ve worked out what you actually need, switching to annual payments can also deliver savings. You might be surprised how much you save. No monthly “Oh right, that came out again” moments. Next, look at systems and efficiency. Are you still doing manual tasks that could be automated? I see so many small businesses losing hours to admin that a simple tech stack could solve. It might cost a little upfront, but it pays off quickly in time saved and fewer errors. Honestly, it’s one of the best investments I’ve made in my own business. And don’t overlook cash flow. Negotiate better terms with suppliers, invoice faster, and be disciplined about following up late payments. The key is to treat cost-cutting as a strategy. It’s not about doing more with less. It’s about doing less of what doesn’t matter, so you can double down on what does.”
Jordana Thirlwall, Co-Founder, Super Easy Storage
“There are overhead costs that can be reduced without cutting staff by evaluating how current resources are being allocated from a daily operations perspective. SMEs can begin by reviewing their fixed expenses, including space, utilities and subscriptions. From here, they can identify areas that may be unnecessarily costly and switch to more cost-efficient options. Where applicable, adopting hybrid setups can also reduce space-related costs. Analysing the right tools or software will also help, as they find those that provide cost-efficiency and boost productivity to streamline projects.
“It is also important to create an environment of responsibility, ensuring team members each provide a valuable contribution. Through strategic investments on tools and amplifying operational efficiency, SMEs will not only maintain their workforce while minimising costs, but also build a better culture for productivity.”
Alexandra Sim, Operational Efficiency Consultant, The Efficiency Lab
“Firstly, rebalance the team. Get everyone (yes, you too) to track and audit their time. This isn’t about micromanaging—it’s about uncovering where tasks can be reshuffled to match strengths and lift productivity. Wasted time is one of the biggest hidden costs in business. Secondly, get smart. Have everyone review their tasks and ask: Can this be automated, streamlined, or handed off to AI? While AI is booming, the future belongs to the work humans do best—relationship-building, creativity, strategy. Free your team to focus on that, and automate the rest. A more effective team means a better product or service to sell. Finally, clean house. It’s not glamorous, but it can have the fastest impact on your bottom line. Review your last month of expenses through the 4Ts filter: trash what you no longer use (hello, forgotten subscriptions), trim overspending (like unused software features), transfer to better rates (start with insurance and loans), and treasure the things that directly generate revenue or support delivery. These stay. Small, strategic shifts in time, tasks and tools can make a big difference. The profit is there—you just need to find and free it.”
Narendra Shukla, Director – Consulting Services, Edwise Consulting
“At times, we cannot see the forest for the trees. Without clear thinking, it’s very likely that we’ll end up treating the symptoms rather than the root cause – especially crucial in ensuring efficient expense management. Therefore, every organisation, irrespective of their size, should reflect back and see if they are driven by a clear purpose. That purpose should be guiding their strategy, and the strategy, in turn, should be supported by a robust operating model – including the processes, people, tools and technology, structure, and culture – to help achieve their objectives, including cost efficiency.
“Fragmentation leads to silos, which create many efficiency issues, and those issues result in unnecessary cost overhead. At Edwise Consulting, we have helped our clients reduce and optimise costs strategically rather than resorting to panic-driven cost cutting.
“We believe the cost reduction endeavour should start with a comprehensive audit to know the ‘As Is’ situation – tracking costs, categorising expenses, benchmarking them, and setting an ideal overhead percentage – aligned with industry standards.
“The next step is optimising operational efficiency via automating repetitive tasks, outsourcing non-core processes, enhancing productivity by streamlining workflows, deploying systems and tools, and implementing lean practices. With the house in order, it’s about renegotiating contracts with partners, consolidating purchases, and negotiating early payment discounts.
“With this holistic view and diligent execution, SMEs can reduce costs without reducing headcount.”
Maongkala Jamir, Content Writer, Jobma
“When margin tightens, it’s tempting to look into the payroll, but a smarter move is often to pause and reassess how your business operates.
“As a SME owner, a good place to start would be to review every recurring expense, including subscriptions, utilities, office rent, power bills, and even snacks. It’s an easy way to identify essential costs and avoidable overhead.
“Many SMEs can also benefit from automating admin-heavy tasks and routine processes. In hiring, for instance, video interview platforms can reduce hours spent on screening and scheduling, while still delivering an engaging candidate experience.
“There may also be opportunities to renegotiate vendor contracts or switch to more cost-effective solutions. For non-core work functions, outsourcing can offer flexibility without long-term commitments. Even small tweaks like optimizing energy use or automating tasks can have a lasting impact over time.”
Luke Maddison, CEO & Co-Founder, Sintoro
“For SMEs, managing costs without cutting staff can feel impossible. But there are some practical things you can do to reduce your overhead costs without impacting your headcount.
“A fractional executive is a senior expert, like a Chief Marketing Officer (CMO), who works with you part-time. You get the same strategic thinking, experience and impact of a full-time hire, but without the $150K+ salary or long-term commitment. It’s lean, flexible and built to scale with your business.
“This model works across roles: marketing, finance, operations, tech and even CEO support. You only pay for what you need, when you need it.
“Before you cut roles to save money, ask yourself: is it really your people, or is it the structure that’s costing you? If your current setup isn’t delivering, maybe it’s time to rethink the model.
“We’ve worked with SMEs that protect their teams and still improve performance—simply by thinking differently about leadership. With flexible, part-time CMO support, they’ve cut costs without compromising impact. That’s been our approach at Sintoro.”
Michael Russell, Managing Director, Finwave Finance
“Reducing overhead costs without cutting your team starts with rethinking how your business handles its capital expenses, especially assets like vehicles, equipment, and technology.
“Too many SMEs still pay upfront for utes, machinery or tools, which can tie up working capital, disrupt their cash flow, and create unnecessary financial stress on the business. Instead, businesses can use asset finance to access what they need now, without the large lump sum upfront.
“There are options like chattel mortgages, leasing and seasonal repayment structures that allow business owners to match repayments to their income cycle. This is particularly valuable for industries like construction, logistics and agriculture. This creates predictable cash flow and reduces financial pressure without affecting staff salaries or hiring capacity.
“We’ve seen clients in 2025 shift to this model and free up thousands in monthly cash flow, which they’ve reinvested into marketing, inventory, or staff training, all while staying lean and competitive.
“At Finwave, we help Australian SMEs access over 45 lenders, structuring finance that suits their needs and business as a whole. In our tight economic conditions, smart finance isn’t just about cost, it’s about control, flexibility, and long-term success.”
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