Ways to cut costs. How to cut costs and other questions are often asked by home based business owners. One of the advantages and disadvantages or key benefits that make or break your startup company from home is to reduce your overheads. Not only do government charges and taxes take up a lot of time to administer and setup costs involved, the costs of utilities and staffing take also a considerable chunk.
There is a way to build your business and focus on the fees rather than worry about the variables of having administration staff constantly busy, worse still sitting around with no work to do while you are out slogging on the road generating clients without guarantee of work coming in the door. This is a no win situation where overheads are mounting daily and client work has yet to arrive or submissions to get on panel work, recommended business listings are waiting to arrive.
The leasing costs associated with rent can easily fund that new car or holiday each year or go into the business cash kitty.
Here are some small business ideas on how to on how to save money in the startup and every month thereafter:
1) Avoid office supply stores when you can. In many cases, the largest volume materials that you will need are available at discount warehouse locations like Office works (getting a business account where you can order online and have 30 days return policy).
2) Jointly buy product together with other business owners you know. A great example is to purchase multiple “software licences” at discount rates instead of everyone buying an individual license. Great for things like accounting software where you can get 5 licences for the cost of 3 individually purchased licenses. You may want to consider sharing your RP Data licence fees if you are a property valuer for example.
Just be sure that you have agreements about the software as to who holds the original copy and privileges.
3) Buy secondhand office furniture. New office furniture loses about 25% of its value as soon as it leaves the showroom floor. Shop auctions or business close-downs to find even better savings.
When you see a going-out-of-business sign, stop in and see if the owners have any office furniture or equipment that they want to sell. Be aware however, that when you purchase such things, you are buying it “as is”. There are no warranties and if it stops working in a week, chances are you aren’t going to get a refund.
4) When you buy product, shop for local vendors that you can pick it up instead of having it shipped. Shipping product can cost you a small fortune and then there’s the dilemma of having someone available to receive the shipment.
5) If you use a particular product but are limited in your purchasing or storage power, ask if you can get the bulk price if you commit to ordering a certain amount in a year. If this agreement is not acceptable, consider asking if you can purchase the volume amount at the volume discount and simply have them store it for you so that you can pick it up piecemeal.
6) Shop for your insurance every year. If you automatically renew, you can sometimes get caught up in some very big price increases. Some insurance companies offer low prices the first year as a bait and then raise the cost when the first year expires. They know that most businesses will stay right where they are at for several years. Changing insurance companies is a pain, but it’s one idea that can save you a ton of money.
7) Go to trade shows and buy there. Both products and services companies will sometimes offer deep discounts to show attendees if they buy right there. This can even happen with publishers where you may want to advertise.
8) Network with other small business owners for the purpose of bartering and trading products and services.
Be very sure that you have this agreement in writing and what the respective costs of products and services are valued at. Hopefully it won’t become a legal issue. But if it does, an agreement that spells out the value will be necessary in asserting your rights.
9) Always ask for a better price. The worst you will hear is ‘NO’. But you certainly won’t get it unless you ask. You might be surprised who will give a better deal including places where everyone buys off-the-rack.
10) Ask suppliers to discount invoices if you pay by check instead of credit card or if they can offer you an early payment discount. Sometimes, suppliers are in a cash-crunch position and really want the money badly to cover their costs. If so, they might be inspired to offer some deep discounts.
11) Staffing costs: have functions such as typing, telephone answering, dictation and general uploading and downloading of information to the internet, data entry, SEO functions and web design outsourced. A good place to start is this blog and get in contact with the owners here.
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Investing in the sector of insurance is a good way of saving your money. The insurance would be helpful as it provides compensations when you face the unexpected fall in your business.
Posted by: Account Deleted | 06/30/2011 at 01:42 PM