Posts Tagged ‘saving money’
Keeping Your Small Business Costs Low
Monday, April 21st, 2008
It’s often hard enough to run a successful business, whether you’re a small-to-medium business owner or a large multi-national. Making it even more difficult are the costs involved if you’re a small business looking to either launch a new product or service, or even your company website. Thankfully there are a host of options and resources available for you to take advantage of, and very often they’re either free or extremely cost-effective.
Use Networking Opportunities
As a small business owner, you’ve probably heard of networking, and may even have attended specific networking events. Bringing together like-minded business people of similar backgrounds, networking can be a great way of promoting your business in a very cost-effective manner. Instead of having to spend thousands on advertising, you can often pick up new clients or affiliate partners for your products at networking events.
Look for Non-Profit Options
Another excellent method of keeping your business costs low is by using non-profit companies. These can offer you sound business advice, from starting a business to maintaining a business plan, as well as the legalities involved in running a business. Additionally, because they’re non-profit, you won’t have to pay exorbitant fees to gain this advice - very often it’s free. Non-profit companies and groups are normally made up of business experts in your field as well, who have enjoyed their own success and simply wish to help others become successful too. Check with your local SCORE organization or Chamber of Commerce for details of what’s available in your area.
Small Business Administration
Across America, one of the very best resources for businesses looking to keep their costs low is the Small Business Administration, or SBA. Set up over 50 years ago, the Small Business Administration has been pivotal in helping many new businesses get off the ground, as well as continue to trade afterwards. Acting as a completely independent agency of the U.S. Federal Government, the SBA can help small businesses find financial aid packages at far lower costs than traditional business loans, as well as put the owners of these businesses in touch with experts who can help them grow. Additionally, there is a dedicated section on the SBA website that caters solely for new start-ups, and as such is an invaluable resource for small business owners.
Use Your Local Resources
While the SBA offers excellent online resources (as well as various offices throughout the US), it’s not always convenient if you want to sit down and discuss your options with someone. This is where your local information outlets can come into their own. Economic development organizations are a good example, and can be found statewide. Much like the SBA, these organizations can offer both technical advice as well as details on how you can raise capital for your business. They also offer groups similar to networking set-ups, where you can speak with experts in your particular niche.
Tags: Accounting, business costs, cutting costs, danny brown, Finance and Accounting, saving money, tips
Posted in News & Articles | No Comments »
Oil prices are going up–ways to cut down on the business energy bill
Monday, March 31st, 2008
With the cost of oil rising to unprecedented levels, businesses are seeing energy costs rise as well. While you may not have a direct link in your business to oil, the high price per barrel cost is impacting your business in some fashion.
As fuel costs increase, so do transportation costs whether by air, sea, or land. Transportation companies often times add on a fuel surcharge or a fuel fee. If you see one of those make sure to ask about it and check your agreement to ensure the added charge is legitimate. If it is legitimate, make sure when the price of oil comes back down that the fuel surcharge disappears.
There are many ways for you to lower your energy costs although you may not be directly impacted by the cost of oil. No matter what business you are in there are a number of ways you can cut your energy costs.
The most obvious is automobile or truck driving. If you need to do any driving for your business makes sure it is well planned out and that you are not wasting trips. If you have a series of deliveries to make spend the time to map them out in sequential order. If there are times or deadlines to deliver by call your customers and see if they would accept an early delivery. Who wouldn’t want that? The result of your trying to be efficient and save some money is a happier customer!
If you ship products to your customers offer discounts for multiple items per package if you can. Also help them to plan their orders if you can to cut down on shipping costs. If they regularly order from you twice a month perhaps you could talk with them about moving it to one time a month to save on the shipping costs for each of you.
In terms of facilities you can save energy as well. Have automatic timers on your lights, particularly in break rooms and bathrooms. Make sure if you have vending machines that you have energy efficient models.
In the office make sure printers, copiers, and other electronic equipment are shut off each evening and particularly on Friday nights. You may be surprised how many of your employees leave on various types of electronic equipment.
Turn down your thermometer and encourage your employees to adopt a layered approach to dressing for work. While you don’t want to be seen as a Scrooge, explain to your employees how much money you spend on heat and electricity. You also want to make sure you have energy efficient bulbs in all light sockets and use fluorescent if possible.
There are a number of ways to save on energy costs around your business. Make sure to pay attention to the details and let your employees and vendors know about your effort, they may surprise you with some great ideas of their own.
Tags: advice, cutting costs, energy bill, larry Slusser, saving money, tips
Posted in News & Articles | No Comments »
Little Cost-Cutting Tips that Add Up to Big Savings
Thursday, March 20th, 2008
With mounting bills and a nationwide economic downturn, it’s no wonder why more and more businesses are looking for new ways to cut their monthly costs. Well, the good news is there are plenty of small things you can do to keep your cash flow healthy. And, as we all know, all those little cost-cutting ideas can add up to some serious savings!
Consider using a VoIP phone service - If your monthly phone bill is in the hundreds every month, consider slashing it down to a single or double-digit bill. Voice over internet protocol (VoIP) companies like Skype, iConnectHere, Net2Phone, and DialPad allow you to dial phone numbers over the internet, and talk and listen using a microphone headset. Other VoIP companies like Vonage and Lingo let’s you use your existing phone number and phone to make calls. Typically, there is no monthly fee and calls are free to other VoIP users, or a very low rate (starting at 2 cents a minute) to cell or LAN-line phones.
Be more energy efficient - Replace your existing light bulbs with compact fluorescent or halogen bulbs. They last longer, give off more light and use less energy than traditional incandescent bulbs. When replacing office equipment, look for the Energy Star logo, as these products not only reduce electric use by over 50 percent, but you might qualify for a tax cut as well. To learn more, visit www.EnergyStar.gov . Also, turn electronics and computers off when you leave the office at night and be sure to turn off lights as much as possible. If you don’t already have one, get an electronic thermostat and lower the office temperature in the evenings and on the weekends.
Consider a payment service - If your website has an online store, chances are you have a merchant account with high monthly fees, statement fees and discount percentages. That can all add up to an unnecessarily-large bill at the end of each month. You may want to think about switching to a payment service like Paypal or Clickbank - there’s just a low per-transaction fee. Depending on the business, this switch alone can save you hundreds of dollars a month!
Cut down on waste - Many businesses are unknowingly overspending by not recycling. Consider the lunchroom: do you provide disposable plates, cups, napkins and utensils for employees to use each day? If so, you might consider stopping those purchases and asking employees to bring in and recycle their own plates and utensils. Also, the amount of paper that gets wasted in the average office can amount to hundreds of dollars a year. Consider using electronic memos, notices and bulletins, and start a recycle bin and use those to print faxes or make in-house copies.
Be creative; there are plenty of other ideas that you can implement to add up to big savings. Take a look around the office and at your daily routine and see what can be minimized or reduced in order to save money. It won’t take long before you have your own list of money-saving ideas!
Tags: Carrie Hinkel, cost cutting, cutting costs, energystar.gov, saving money, Voip
Posted in News & Articles | No Comments »
Make Sure Your Business has an Umbrella for a Rainy Day
Tuesday, March 11th, 2008
Most business owners don’t feel the need to have a “rainy day” or “emergency” fund until business is slow or an unexpected expense is incurred. Instead of having to scramble over some “fast cash” for the business, why not slowly build up a savings account that holds several months worth of operating cash? Even if your business is a start-up and you feel that every dollar is already spent before it’s earned, having a “rainy day fund” is a good idea - and you don’t need a lot of cash to start.
If money is tight, set a goal to have three months worth of expenses saved up within the next twenty-four months. That will give you time to slowly contribute to the account each month. Once your cash flow has picked up, you can then make a new goal of building your emergency account to hold another three months worth of expenses.
Having a rainy day fund is more than just a cushion ready to protect the business when disaster strikes. Think of it also as your reason to take more calculated risks. Whereas before you may have thought better of doing something “outside the box”, with a financial “just in case” backup, you have the freedom to make smart business growth choices that don’t come with a 100% guarantee. As many successful business owners will tell you, it’s the risks you take that could very well bring your business to the next level.
Yet another reason for your business to have a rainy day fund is that having a ready source of cash can help you take advantage of business opportunities you otherwise may not have been able to afford. Seasoned business owners know that not all business decisions and opportunities are months in the making. You might find your product supplier over-ordered and is selling pallet-sized shipments at a 30% discount, or maybe a large and well-known mail order catalog has selected your product for inclusion, but there is a $2,000 placement fee. The situations are endless, but unless you have a way of getting “fast cash”, you could very well miss out on opportunities that could have done wonders to skyrocket your business.
Starting your rainy day fund is easy: just take a look at your financial statements to figure out your average business expenses per month. Then, figure out how much you can reasonably contribute to the fund until it has enough to cover three to six months worth of operating expenses. If you come to the conclusion that you simply don’t have any leftover money to contribute, then look again and see what expenses you can cut out. Are you over-paying on shipping? Do you really need that fresh-from-Starbucks coffee every morning (ever hear of the latte factor?) Even if you can scrape together $25 a week, that’s better than nothing and you will find that once you start it, contributing to your rainy day fund is easier than you thought!
Tags: Accounting, budget, Carrie Hinkel, Finance, Finance and Accounting, financial planning, rainy day fund, saving money
Posted in News & Articles | No Comments »
More Than 25 Easy Ways to Recycle, Reduce and Reuse Everyday in Your Business
Wednesday, March 5th, 2008
There are many things you can do to make your business more environmentally friendly. And, the best part is, many ideas are free and some can even save you money! It may take a little extra effort to get your new (and greener) processes in order, but once they’re in place you can feel great about doing your part to reduce waste and lighten your company’s carbon footprint. An initial staff meeting on the importance of recycling and reducing waste can really help to motivate the entire office to do their share. Here are some easy ways that the entire office can recycle, reduce and reuse:
Ways to recycle
* Have clearly-labeled recycle bins throughout the office and recycle paper, cardboard, cans, plastic, bottles, etc.
* Recycle toner and printer cartridges - most office supply companies will take empty cartridges back.
* Buy recycled products (paper products, packaging, etc.) whenever possible
* Recycle old electronics and computer equipment - check with local computer parts suppliers to see if they’ll take your old equipment.
* Don’t purchase paper that is a contaminant in recycling. For instance: thermal fax paper, paper with bright colors, paper with glossy coatings, etc.
Ways to reduce
* Stop using cover sheets on faxes
* Print directly on envelopes instead of using labels
* Use erasable white boards instead of sticky notes
* Use both sides of the paper when printing or making copies
* Review documents on screen before printing
* Switch to lightweight paper
* Remove out-of-date names from mailing lists
* Take the necessary steps to reduce unsolicited mail, such as unwanted catalogs and mailings
* Post announcements on bulletin boards or send via email
* Circulate memos, reports, documents etc. electronically rather printing paper copies
* Design mailers that don’t use envelopes (fold and staple the paper instead)
* Buy refillable printer ink and toner
* Buy fluorescent instead of incandescent bulbs
* Encourage employees to carpool or use public transportation by offering special commuter benefits
Ways to reuse
* Save paper that has been used on only one side and use the other side as draft paper for faxes, copiers, and notepads
* Save packing material you receive to reuse for future shipments
* Use old letterhead for internal documents
* Place a new label over outdated file folders and reuse
* Shred newspapers, magazines and old papers to use for packaging
* Encourage employees to bring their own reusable plates, cups, and silverware to the office. Idea: have mugs and lunch coolers printed with your logo to give to your employees. It’s a gift that keeps on giving - back to the Earth!
Taking the steps to become a more Earth-friendly work environment isn’t hard, but it does take a commitment on the part of the owners and the employees. You might even consider putting together a “Green Committee” of a few employees who continue to come up with new ideas for making new, and environmentally-friendly changes to the office. Also, having an anonymous “Office Green Tips” box will encourage all employees to make suggestions on how to improve things around the office. Other ideas might be to have an “employee tree planting day” or an “empty parking lot” day and reward those employees who participate.
Tags: Carrie Hinkel, environment, going green, recycling, reduce waste, saving money, tips
Posted in News & Articles | No Comments »
Renting Business Equipment and Your Bottom Line
Monday, February 25th, 2008
Starting and running a successful business is expensive. To defray costs associated with business equipment, the ability to rent, rather than purchase outright, is an option exercised by business owners. Upfront costs to procuring business equipment, such as computers, copiers, printers, and furniture, are much lower by renting than buying. However, the tax ramifications can hurt when Uncle Sam comes asking for his check. Here is a look at how the two business equipment procurement strategies differ.
There are two main benefits of renting business equipment rather than owning. First, renting may be the only way a new business can afford start up costs. Also, maintenance and upkeep of the equipment is not the business owner’s responsibility. If the copier breaks, or the computer crashes, it’s most likely on the rental company’s shoulders to handle the costs of repair.
Damage due to the negligence of employees using the rental equipment is the business owner’s responsibility, and a hefty repair or replacement bill could unexpectedly wreak havoc on the business’ expense report. The equipment renter may also be at the mercy of the rental company to schedule maintenance and repair, and that could impact productivity.
For federal tax purposes, renting business equipment is not going to net the same amount of tax deduction than just outright ownership. Rental fees may be written off as a deduction, but business owners then cannot deduct the maintenance and repair bills, or depreciate the equipment. For state tax purposes, this could help alleviate the bill of any personal property tax. Some states impose a yearly tax of as much as 10% on the fair market value of all business equipment, furniture, and fixtures for the life of the items. This tax would be the responsibility of the rental company. A business renting the equipment may still be subject to state sales tax on the rental cost.
Beware of rent-to-own business equipment scheme! A business renting office equipment will pay far more in rental fees than if it had simply financed the equipment outright. Paying rental fees also won’t help the business’ credit rating. Financed business equipment also offers a tax deduction for the interest on the loan. There are just not many advantages to a rent-to-own plan.
Renting business equipment and computers should not be done to only keep startup costs low. Long-term tax considerations, and also asset acquisition must be weighed. When renting business equipment, at the end of the lease, a business does not have an asset to show for the sum of all rental fees. Technological equipment like computers and cell phones may be best rented if there is expectation the equipment will be regularly updated to remain competitive and productive. Just be prepared to re-negotiate rental fees when upgrades occur. Stay vigilant with regard to all contract terms, as well as rental and financing, to keep the arrangements in favor of your business’ bottom line.
Tags: advice, buget, cutting cost, Rebecca Button, renting business equipment, saving money
Posted in News & Articles | No Comments »
Using Web-Based Services to Save Your Company Thousands!
Wednesday, February 6th, 2008
Looking to cut costs for your business? Then, you may want to consider using web-based services with no or low monthly fees - instead of expensive software or an even more expensive server.
As more and more business owners are finding out about the goldmine of web-based services available, there has been a noticeable surge in the industry. In 2007, about 27 percent of small and medium-sized businesses used at least one web-based service - that’s up from 9 percent in 2006.
The benefits of using web-based services
Cost - Because of the shear number of web services available, most are available either for free or for a low monthly cost.
Storage - With web-based services, your business can avoid the astronomical cost of having its own web server because your information will be stored on their server.
Selection - It seems that there are hundreds of new web-based services popping up each and every day. If you’re thinking about buying an expensive piece of software, first take a look online for a similar web-based service. Chances are that it exists and is much cheaper than the software version.
The drawbacks of using web-based services
Security - Some people worry about the security of their company’s information since it’s stored on another company’s servers and not theirs. For any web-based service you decide to use, be sure to check the company’s security certificates before uploading any sensitive information.
Online - Most web-based services only work if you are connected to the internet, which may be a problem if you or your employees are frequent travelers. In that case, you may want to go with a web-based service that allows you to download documents so that you can work on them offline.
Fewer options - Not always, but sometimes web-based services offer less choices than their software counterparts. If you are looking for a specific feature on an application, be sure to ask if it’s included.
If you think using a web-based service might be right for your company, then you may want to consider some of these small business favorites:
All things Google - Google is known for having some of the best web apps out there - Google Docs, Gmail, Maps, Calendar, Notebook, etc. They are all simple to use and set up - once you start using them you’ll wonder why you never took advantage of them before!
SplendidCRM - Businesses can easily spend thousands on customer relationship management (CRM) software, but with this web app there’s no reason to! Keep track of all your contacts, customers and potential customers in one easy place.
Zoho - This company offers a wide variety of web-based services - wiki, CRM, writer, spreadsheets, planners, etc. You’ll be amazed at how useful all of these programs are.
Yapta - This web-based service can actually save you money. Just enter your flight information and Yapta will alert you when the price of your plane ticket drops and you’re eligible for money back from the airlines.
Quickbooks Online - Just like the expensive accounting software - except all your files are stored on the site’s server, instead of yours.
Constant Contact - One of the best ways to create and send out an email campaign from your business. There are plenty of options to choose from to customize your mailing with logos, fonts and pictures.
Packetel - A web-based service that allows you to have a digital fax machine. When a fax comes in you can either retrieve it online or you can have it emailed to you.
There are literally thousands of other web-based services available, so if there’s a service or software you need, you can bet you’ll find a web application for it. Be sure to test a service out before committing to it - you might find that you prefer one service over another.
Tags: Carrie Hinkel, E-Commerce and E-Business, money saving tips, saving money, security, web-based services
Posted in News & Articles | No Comments »
Spending Money to Make Money: Costs you Cannot Afford to Cut
Monday, February 4th, 2008
Cut your operating costs. Run your business lean. Bootstrap-spend your way to success. All of these mantras involve minimizing spending and if you follow them all, you won’t make any money. There are times in the life of your business where you are going to have to spend money to make money.
Also, there are some aspects of your business that you just can’t afford to cut out; the cost to your business is too high. The key to success in business is having the wisdom to know when and what to invest in and when and where you can cut expenses without hurting your enterprise.
How Do I Know If Something Is Critical Or Not?
If I cut this out, how will it impact my business? This is the key question to ask yourself before you get too far down the road planning to cut out something. Whether you are contemplating a reduction in product or service offerings, or looking at laying off an employee, look at how will the reduction impact your business. In the short term the answer may be that the impact is negative - but what does the long term look like?
If you were in the wagon wheel industry as a marketer or reseller, you needed to transition when Henry Ford invented the automobile. Those who failed to shift their strategy paid the price. While this example is extreme, the lesson is still valid - change happens and you and your business need to be aware and ready for change.
If I Make This Investment What Will the Payoff Be? How Long Will It Take to Realize the Benefit?
Most people in business have heard of the term ROI, or return on investment. While there are many math calculations to help you figure out the ROI of a capital investment, there are other more subjective factors to consider in the return on your investment.
If you are considering a new product offering, make sure you have an accurate gauge of the demand for the new product or service. While this can be difficult to estimate, look at similar industries or technologies and study how the demand developed and trended over time.
If the investment you are considering is a capital investment, will it result in additional sales or increased efficiency? For example, you may be considering the purchase of a new multi-function printer for your business. If you are able to double side print your documents, improve your use of toner, and save on spending at your outsource copy company, the investment will save money for your operation. If you are having to spend time to go to the copy facility and use gas to drive there, be sure to calculate a cost for your time and the vehicle fuel and maintenance. It is important you calculate all costs into your decision matrix so you can make the best decision possible for your enterprise.
Remembering to ask these three questions when considering cost-reduction tactics can save you time, money, and your sanity in the long run.
Tags: advice, cost cutitng, cutting costs, larry Slusser, money, saving money, tips
Posted in News & Articles | No Comments »
How to Trim the Fat Off Your Insurance Bills
Thursday, January 3rd, 2008
It’s no secret that the cost of most types of insurance is on the rise–from liability coverage for your business to car or health insurance. You can’t afford to go without coverage because an incident can put you out of business. But you can fight against price hikes back by taking certain steps.
Property and liability coverage
Protect your equipment and other business property as well as insure against claims by third parties for injury on your premises with a business owner’s policy (BOP). Shop around for adequate coverage at the lowest price. Before your policy is up for renewal, work with an insurance agent to get you the best coverage possible. Don’t wait until the last minute when you’ll be forced to accept whatever can be quickly obtained.
If your business is home-based, don’t assume your homeowners’ or renters’ policy will cover you–there may be a limit on or exclusion for business-related incidences. The least costly solution for proper coverage: Add a rider to an existing policy where possible. If not, you’ll need to purchase a separate in-home business policy.
Car
Decide who should own your vehicle–you or your company by running the numbers. For example, if the company has three principals, there may be a fleet discount on insurance for company-owned cars.
To keep premiums down, gamble a little by raising your deductible. For example, doubling the policy’s deductible (say, from $500 to $1,000) can cut insurance rates by 15%.
Ask your agent or the insurance company for a listing of discounts available (e.g., discounts for "good drivers," low mileage, ABS breaks and anti-theft devices). Check employees’ driving records before allowing them to use company vehicles to avoid any future increases.
Idea: Make sure there’s coverage if you’re in an accident with your personal car when you’re on business–the policy may exclude business-related liability. For coverage, the business name may have to be included on a personal policy in order to be covered.
Health
Think outside the box to slash your medical costs. Create accounts that employees can use to pay medical costs not covered by insurance (withdrawals from these special accounts for this purpose are tax free). Your options:
* Health savings accounts (HSAs) can be used to cut a company’s medical costs by up to 40%. The company arranges for a high-deductible health plan, which costs substantially less than traditional health coverage. Then contributions to IRA-like accounts are made by the company and/or employees (up to limits fixed annually by law); the party making the contributions claims a tax deduction for them. These accounts belong absolutely to employees, who can take them when they leave the job.
* Health reimbursement arrangements (HRAs) . The company also switches medical insurance to coverage for major incidents only, saving considerably on premium costs. It then contributes a fixed dollar amount (set by the company) to a special account for each employee, which costs the company less than it would have paid in premiums on more traditional (comprehensive) medical coverage.
* Flexible spending accounts (FSAs) . These accounts, which can pay medical costs not covered by insurance, are funded with employees’ pre-tax dollars. If money is not used up by the end of the year (or within a 2-1/2 month grace period), the funds in the account are forfeited to the company.
For more information, see IRS Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans, at www.irs.gov .
Idea: If you’re self-employed, look for lower cost coverage through trade or professional groups, or your local chamber of commerce.
Workers compensation
If your company has employees, it usually must carry this coverage to protect workers in case of on-the-job injury. The premiums are tied in part to the number of accidents or occurrences, so safety measures can cut costs.
* Keep office space in good physical condition (e.g., no cuts in carpeting that can lead to trips and falls).
* Make sure workers operating any machinery do so safely. Provide proper training and any necessary safety equipment.
Find out more about safety requirements from the U.S. Department of Labor’s Occupational Safety & Health Administration (OSHA) at www.osha.gov ("click on small business").
Big Ideas for Small Business is a free monthly online newsletter from Barbara Weltman, author of The Complete Idiot’s Guide to Starting a Home-Based Business, Third Edition, and The Complete Idiot’s Guide to Starting an eBay Business. www.barbaraweltman.com
Tags: Accounting, Barbara Weltman, BarbaraWeltman.com, bills, cutting costs, Finance and Accounting, insurance, saving money
Posted in News & Articles | No Comments »
Top 3 Tips For Trimming Your Shipping Costs
Friday, December 28th, 2007
If you are running a business selling products online, you are aware that shipping costs can make a large dent in your bottom line.
In this article, we will look at some ways in which you can trim your shipping costs and make your business a lot more profitable.
* Save A Penny, Save A Pound. Remember that shipping is not all about the carrier, the postage, or even the weight. If you are selling a lot of items, then odds are you are spending a lot of money each year on smaller, unnoticed items such as packaging materials.
Look for ways in which you can reduce the costs of these materials, including tape, Styrofoam, and labels. Buying wholesale or bulk is a great start; and of course, you can always go directly to the source through a shipping materials website.
* Use The Right Box Sizes! If you sell a large variety of products in terms of size, then make sure that you understand that size does matter in terms of shipping costs. There are a wide range of box and envelope sizes out there, and the U.S. postal service provides many of them for free.
Using the right size box or envelope will mean less cost for individual items shipped. It will also mean using a lot less of the smaller materials that add up, discussed in point number one!
* Shop Around For A Carrier. Of course, the biggest expense you will incur when it comes to shipping will be in the carrier services you use. You should undergo an analysis of your carrier’s costs every month and compare them to what the competition is offering.
There are plenty of options when it comes to delivering your packages, from shared loads to bus lines and of course the good old postal service. The most cost efficient means will depend on how many packages you want to send, and how much they will weigh.
Remember that it might work out much cheaper, per package, to send a bunch out at once, even though the total price itself may seem shockingly high. Take the time to do the math!
Shipping costs are a critical concern for any business that sells products to a diverse marketplace. Make sure that you invest the time needed in order to ensure you are keeping this costly part of your business as inexpensive as possible.
Tags: budget, cutting costs, Leeia Ladipoh, money, saving money, shipping, shipping costs, tips
Posted in News & Articles | No Comments »