Cut Costs, Not Corners (Part II)

Sorry for taking so long to post this stuff – you know how life can get crazy.  This blog fell to the wayside these past few weeks while I worked on things in the real world that need my attention.  But now I’m back, and hopefully I will begin to post regularly.  As my peace offering, please accept a few more ideas for small business owners to cut their costs without cutting corners.

Cut down on your travel expenses by not traveling to places that will not generate revenue for your business.  Now, don’t take this to mean that you should never travel; there are times that you will need to travel in order to make that big sale or cement your relationship with a client.  These are times when you will want to shell out the money for a plane ticket because you will eventually reap the rewards through more sales or possible referrals from a loyal customer.

With the real estate market slowly circulating the drain, the time has never been better to try and get your rent lowered.  You can do this in a number or ways.  You can go out and try to find new office space with lower rent or you might want to try and negotiate with your current landlord.  Landlords would much rather have their office space rented than have it sit empty, even if it means renting at a lower price.  If you have found a new office at a better price, mentioning it to your landlord during negotiations may be the key to getting the rent you want and not having to deal with moving across town.

One way to save a bundle on business costs is to purchase secondhand office furniture.  I know, it seems so simple but I am willing to bet that this idea doesn’t ever cross the mind of the average business owner.  Websites like myofficefurniture.net can help you find essential office furniture.  You might also try craigslist.org or check out local garage sales for gently used pieces that would look right in an office setting (the pink desk with the Hannah Montana stickers on it is probably not the right choice, even if it is only $2.50).  Remember, the services that you offer your customers and your commitment to quality as a small business owner are what will set you apart from your competition.  Expensive office furniture may make you feel extra-professional, but it is not essential to running a thriving business.

Saving Money as a Small Business

With the economy in its current state, it’s not surprising that everyone is looking for ways to cut corners.  However, if you own your own business, cutting corners may mean closing your doors due to lack of working capital.  So what can you do to save your small business money?  There are a number of ways that you can do just that without changing much about the way you do business.

Save on energy costs by turning down the heat.  Yes, your dad had the right idea when he told you to go put on a sweater.  Turning the heat down even just 2 degrees can save your business a bundle on your heating and cooling bills.  If you rent office space in an older building, you might want to talk to your landlord about having some better insulation put in.  If your office has lots of windows, make sure that they are keeping the inside air in and the outside air out with the appropriate weather stripping.  Using fluorescent lights as well as CFL lights in desk lamps will help to push back your energy savings as well as save money on purchasing new blubs.  Some CFL’s are advertised to last for a few years at a time.
If you can, you might consider telecommuting to work a few days a week.  Not only will it save you money on gas wasted idling on the highway, but it will give you back the time you would have wasted sitting in traffic going nowhere.  Depending on how far your office is from home, this could add an extra two hours to your day.  Not to mention the reduction in your stress levels – have you ever heard of anyone who liked sitting in rush hour traffic?

Talk to the businesses that your purchase goods or services from.  You might be able to get a discount on your invoice total by paying them early.  This will vary company by company however, so be sure to double check before you make any assumptions.  You also may be able to barter goods or services with businesses that you provide services or goods to, which will save you money overall.  Taking the time to call and set up deals like bartering for goods or getting a discount on your invoice will do another positive thing for your business – you’ll be making contacts throughout the industry that may be able to bring you more business in the future.  Never underestimate the power of personal contact in business ventures.