September 2010

More money saving tips for small business

If you're the owner or manager of a small business, you've undoubtedly felt the pain of this economy's ever-so-slow recovery. Demand for your products or services may have dwindled and when revenues are down, businesses need to adjust by tightening their belts. But reducing expenses is a balancing act. Cut costs that make a significant contribution to your income, and you may find revenues declining further. Trim expenses that are "fat" — unnecessary because they don't bolster the bottom line — and your firm can become leaner and better able to compete.

Here are a few suggestions for targeting and trimming some of these "fat" expenses.

• Scale back on utilities. Take a hard look at your phone system. Do most of your employees use cell phones? If so, perhaps you can reduce the number of phone lines or dispense with that expensive in-office system entirely. Is your electric bill going through the roof? Try installing motion sensor lights in some areas, and turn off lights in unused spaces. Consider switching to laptop computers instead of desktop models that consume significantly more energy.

• Exploit the Internet. Use the World Wide Web for everything you can, from teleconferencing to market research to buying discount office supplies. Look for deals on office items on Craigslist and eBay. Find free business forms online, everything from purchase order templates to marketing brochures.

• Bolster your procurement practices. Force vendors to compete by getting multiple bids, and ask suppliers to match the lowest prices.

• Lease that unused office space. If you have space that's, well, taking up space, consider subletting to another company or asking your landlord for a price reduction.

• Buy in bulk. Everything from office supplies to lunchroom goodies can be purchased at a discount in larger quantities.

• Dump the company car. If your company owns a vehicle, it may be time to rethink whether it's really needed. Gas, insurance, car payments, and other costs can go away if the car isn't on the company books.

• Review your insurance policies. It may be time to discuss discounts or umbrella plans with your insurance agent. Shopping around can be a good idea as well. After all, insurance companies are feeling the effects of the down economy too, and may be willing to work with you to retain your patronage.

If you'd like to discuss additional ideas for reducing business costs, give us a call.

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