Practical Money-Saving Tips For Small Businesses

In today's economic climate, it's more importanthome-based or not, I'd recommend you get with
than ever to save every penny we can in ouryour tax advisor, or go to irs.gov and do some
small businesses. With profits becoming harder toresearch on what you can legally deduct.
turn, trimming costs needs to be one of theConsider used or reconditioned - You don't have
primary focuses of any responsible smallto buy new to get quality office equipment and
businesses - right there beside increasingfurnishings. Check out your newspaper classified
revenues.sections, auctions, and Internet sites like eBay and
So here are some cost-cutting measures you canCraig's List. Be sure to have all merchandise
take right to the bank.checked out thoroughly before you buy, or to get
Consider carefully before you buy - Before youa money-back guarantee.
buy that new piece of high-tech equipment orPay your bills online - Save postage costs and
company car, think about three things 1) Can youtime by setting up an online account with your
afford it? 2) What it your ROI (return onbank, and paying your regular monthly bills from
investment)? and 3) Are there anyyour computer. (Be sure to check the "lag" time
tax-advantages or deductions?and adjust your payment times accordingly.)
Comparison shop - This is as important to do forDepending on the payee and bank, it sometimes
small-ticket items like office supplies as it is fortakes several days from the time you pay to the
big-ticket items like copy machines. If you ordertime your check makes it to its intended
online, you can use the Internet to researchdestination. Along the same lines, you can also pay
prices and it's very simple to pull up side-by-sideyour bills directly to the payee in some instances.
comparison. And if you decide to buy from aBe sure to check out all your options and use
bricks-and-mortar store, you can use yourthem.
research as negotiation.Centralize your office supplies - Unfortunately, we
Get three bids - This is along the same lines asoften waste or misuse office supplies through lack
comparison shopping, and works especially well ifof diligence. Many times we don't keep good track
you are contracting for services like repairs orof what we have and what we need, and end up
office cleaning, or any number of other things.running out (and paying too much in panic), or we
You'd be surprised how widely bids will vary. Iforder something we already have. Keep your
you like another higher-bidding company betteroffice supplies in one centralized location, and
than a lower-bidding company, if you quote theirdesignate one person who will monitor and dole
competitor's lower price, companies will oftenout the supplies, and reorder when necessary.
match the lower bid to get your business.Reduce your energy footprint - Going green often
Barter - One of the best ways to stretch yourmeans saving some green as well. Turn lights off
business budget is to barter, or swap, yourwhen the area is not in use. Replace your old
product or service for another product or service.standard bulbs with the new compact fluorescent
You keep your cash, but get the item you need.light bulb (CFL). The initial cost of the bulb is more,
You can either barter with businesses directly, orbut the bulbs last 10 times as long as standard
hire a barter broker who works on commissionbulbs, and use 75 percent less energy. The
(look in the phone book or Internet to locate one).long-term cost savings far outweigh the price of
You can also join a barter club or exchangethe bulbs.
through clearinghouses like National Association ofNegotiate - Did you know that just by asking, you
Trade Exchange where you receive "trade dollars"can often get a discount? It's true. Especially if
for your goods or services that you canyou are paying with cash and in full. Ask ad you
exchange for other goods or services. Checkmay just receive!
them out at nate.org.Save on insurance - By raising your deductible,
Join your local Chamber - Or other trade oryou can save a tremendous amount on your
business association. Many of them offermonthly premiums. Chances are good that even if
discounts on important business expenses likeyou have to pay your deductible, you'll still end up
insurance.saving over what you would have paid in
Know your tax-deductions - This is especiallypremiums. Check with your insurance carrier to
important if you run a home-based businessfind out for sure.
where you can deduct a percentage of theFollow these cost-cutting tips and you'll soon see
money you outlay for rent or mortgage interest,your overhead going down, and your bottom line
utilities, house cleaning, lawn care, homegoing up.
maintenance, and more. Whether you're