Small Business Boomers

Is your business is reeling from increased costs and the economic downturn? Are you, like the business owner in the photo, watching your business profits shrinking?  For many businesses, when times are good, they spend.  Now, these same businesses are looking at ways to save.  While it’s always a good idea to look at your business costs, now is a great time to implement some of those cost-saving ideas.  To help you, here are some suggestions for cutting costs, from Business Week and from my own experience:

•  Reduce energy costs - lower the thermostat in your office.  The Alliance to Save Energy has some great tips for saving energy in a home-based business – these certainly would work for any business.
•  Cut back on travel costs - use phone or video hookups for meetings.  If your business is too small for videoconferencing, buy computer mini-cams or see if you can find a larger local company that will sell you time on their video conference equipment.
•  Pay early and get a discount.  If vendors offer a discount (often 2%) for paying bills early, use cash for this.  Those “2 %’s” add up.
• Try to renegotiate your lease or look for cheaper space.  The property management company doesn’t want you to leave right now. So if you can renegotiate a cheaper lease, you might be ahead.  If not, look around for smaller, less expensive space.  Before you do that, though, review your lease to be sure you won’t be penalized for backing out early.
• Buy used.  If you really need office furniture or equipment, see if you can find them used.  Look on craigslist for your city. Google “used office furniture [your city and state]” – I did it and was surprised at how many places in my town sell used office furniture.
• Barter.  Exchange services with other businesses.  Many small businesses do this.  Keep tabs on things, so neither of you feels imposed on and learn the tax requirements for barter, so you don’t get caught by the IRS.
• Don’t Overbuy.  Do you really need all those great new pens? I’m a pen junkie; I know how it feels, but try to restrain yourself.  Would you rather have a new pen or cringe when you see the office supply company bill?
• Negotiate with local businesses.  Local businesses have a difficult time competing with the big guys.  You may find that they are more willing to talk to you about lower interest rates or lower prices if you give them your business on a continuing basis.
• Negotiate with credit card companies for lower rates on business cards.  Typical rates for business credit cards are much higher than on personal credit cards, so these rates can get up to 25% or more ! That is a lot of wasted money.  If your business credit is good, you may be able to get them to lower your rates.  Try to pay down balances more quickly, if possible, and save more money.

If this sounds like common sense, well, I guess it is.  I am taking a look at my own business costs and cutting back where I can.  I’m not buying all those “writing resources” (read: Amazon books).  How about you?  What are you giving up to make sure your business succeeds in the coming months and years?

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