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| FREE ARTICLE |
Easy Ways to Save In Your Small Business
You’ve heard it over and over again: The lack
of cash flow is the number one reason most
businesses fail. So it follows that every
small and home-based business owner should
know how to stretch a dollar. Here are seven
of the easiest ways to rein in your business
expenses:
1.
Reduce, reuse, recycle
Rethink how you use and acquire resources.
Do you toss out paper printed on only one
side, or buy new toners instead of refilling
the old ones as often as possible? Or do you
waste money on inadequate data storage such
as CD-Rs and DVD-Rs? You could save money
by using flash drives, DVD-RWs and CD-RWs,
which you can use multiple times without losing
data.
Also, instead of shelling out extra money
or going into debt to purchase new computers,
printers or faxes, buy refurbished models
instead. Many of these tech goods are refurbished
to a high standard and may come with guarantees
from the sellers. Or, you can simply replace
the parts of your computer system that need
replacing, rather than buying entirely new
systems. These budget moves are also good
ways to green your business.
2.
Sign up for an office supply store card or
newsletter
Some stationery suppliers such as Grand &
Toy offer discounts to card members. In some
cases you can save as much as 35 per cent
on the supplies you need. Other merchants,
such as Staples, offer weekly discounts that
you can learn about through their newsletters
or flyers. Some suppliers even throw in free
delivery within their local area if your order
exceeds a certain amount.
Also, don’t forget about Costco. This big-box
store sells electronics, computers and accessories,
and stationery supplies at highly competitive
prices.
3.
Don't always go with what you know
This requires getting out of your comfort
zone. Take phone services; many people are
still using traditional phone services for
their businesses instead of cheaper services
such as Vonage, Yahoo VoIP, or Skype. Some
stick with their phone company’s long distance
plan when they could save money by signing
up with a competitor. Or some peope use the
company that insures their homes to insure
their businesses. But are they getting the
best deal?
Often, people fear the paper work or the time
it takes to set up a new service. One way
around this is to ask your current provider
to match a competitor’s price. Otherwise,
you will have to decide if the potential savings
of switching to a cheaper service outweigh
the cons.
4.
Hire the right people
You’ve probably heard the saying “be slow
to hire and quick to fire.” This little nugget
goes a long way when it comes to saving money.
It takes a lot of time and money to search
for and train a new employee. While small
business owners are often overwhelmed and
tempted to hire quickly, you shouldn’t shortcut
the hiring process.
To trim your hiring expenses, be clear about
what the job entails, your expectations, your
business policies, and the skills the employee
must have. If you can, get the employee to
demonstrate their skills during the hiring
process (for instance design a web page or
database for you, or create a promotional
brochure for one of your products) to see
if they meet your standards.
Finetuning your hiring process also applies
when you’re shopping for service providers
on freelance sites. Don’t hire just anyone
because you need to turn around a project
quickly. If that provider screws up, you’ll
have to pay someone else to fix their work.
Or, you’ll have to do it yourself. How much
is your time worth?
5.
Shop online
Many stores, including book, furniture, software
and computer stores, offer deals online that
are not available in their bricks-and-mortar
businesses. Some of these discounts can be
substantial, up to 50 per cent off. Also,
you can take advantage of deep discounts from
resellers, whose prices often beat prices
you’ll find in regular stores.
Online savings aren’t limited to products,
however. You can also save on services, such
as business incorporation, travel arrangements
or freelance help.
6.
Be a smart banker
Bank officials are great at promoting services
with bells and whistles for your business
account. Tune them out. Instead, choose the
most basic account that gives you all the
services you need. Get the generic checks,
use ATMs, and bank online as much as possible.
Banks use advanced security technology to
create a safe online banking environment,
so the risk is low. Also, banking online saves
you valuable time you can devote to other
duties.
7.
Keep your company logo simple
You can quickly rack up additional printing
costs for business cards and letterhead if
your logo has more than two colours. Keep
it simple. Two colors don’t have to mean boring
(think of CNN’s logo or the Nike swoosh).
A vivid concept executed with sophistication
can be just as powerful. Also, if you don’t
have a quality laser printer at your disposal,
you should find an affordable printing shop
to do the job. You want your cards to be cheap,
not look it.
Keeping your eyes on the bottom line can seem
tedious at times. But as it becomes a habit
you’ll find it easier. Plus, you’ll enjoy
using those savings in other critical areas
of your business.
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