The instinct when overhead feels high is to cut broadly, but indiscriminate cuts to things like software, training, or maintenance often cost more in lost efficiency than they save.
Lower-risk places to look first
- Renegotiating existing vendor contracts and subscriptions rather than immediately switching or canceling
- Consolidating overlapping software tools doing similar jobs
- Shifting fixed costs to variable where genuinely possible — outsourcing occasional work instead of maintaining year-round fixed capacity for it
What to protect from cuts even when overhead feels high
- Tools and training that directly support service quality or team efficiency
- Maintenance that prevents larger, more expensive problems later
- Anything currently contributing meaningfully to revenue generation, even if it’s technically classified as overhead
A better first step than cutting
Before cutting anything, calculate your actual overhead costs by category first — it’s common to assume a cost is bigger than it actually is, or to overlook a genuinely large one, without first breaking overhead down by line item.