Small Home Business: Effective Ways To Reduce Your Costs
One of the advantages of conducting your own small business is
you can significantly reduce your costs by controlling a few
simple processes. Here are ten useful ways to reduce your
business costs.
1. Network With Non Competing Businesses This can present
a fantastic opportunity for many businesses. Try networking your
business with other business owners. Of course, you would not
approach someone with business that is in direct competition
with yours! There may be several non-competing businesses that
appeal to a similar market as your business. For example weight
loss, lingerie and child care businesses all appeal to women and
do not compete with one another. You may be able to trade leads
and mailing lists.
Make a list of all the possible business alliances in your area,
work out a win-win arrangement where both businesses benefit,
and systematically work through your list. This will cut down on
your marketing and advertising costs.
2. Wholesale/Bulk You'll save money buying your business
supplies in bulk quantities. You could get a membership at a
wholesale warehouse or buy them through a mail order or internet
wholesaler. Buy the supplies you are always running out of.
3. Free Stuff You should try visiting the thousands of
freebie sites on the internet before buying your business
supplies. You can find free software, graphics, backgrounds,
online business services and business cards to mention a few
items. There are many online sites providing freebies, and to
get you started visit www.freeonline.com.au and www.ifree.com.au
4. Borrow/Rent Have you ever purchased business equipment
you only needed for a small period of time? You could have just
borrowed the equipment from someone else or rented the equipment
from a business equipment supplier. A quick search through the
Yellow Pages or on the internet will give you a number of places
that rent office equipment.
5. Online/Offline Auctions You can find lower prices on
business supplies and equipment at online and offline auctions.
I'm not saying all the time, but before you go pay retail for
these items try bidding on them first. If you are not able to
visit a local auction, you may find online auctions such as
www.ebay.com useful.
6. Plan Ahead Make a list of business supplies or
equipment you'll need in the future. Keep an eye out for stores
that have big stock clearing sales. Purchase the supplies when
they go on sale before you need them.
7. Used Stuff If your business equipment and supplies
don't need to be new, buy them used. You can find used items at
garage sales. Keep an eye out in the papers for liquidation
sales.
8. Negotiate You should always try negotiate a lower
price for any business equipment or supplies, especially if you
are paying cash. It costs the retailer to operate a merchant
account for credit cards and often they willing reduce the price
for a cash sale. It doesn't hurt to try. Pretend you are talking
to a salesman at a car lot.
9. Search You can always be searching for new suppliers
for your business supplies and equipment. Look for suppliers
with lower prices and better quality. Don't just be satisfied
with a few.
10. Office Upgrades Many commercial businesses upgrade
their information technology requirements every few years. When
this happens offer to purchase the old equipment, which may be
going to be scrapped in any case. It is likely your IT
requirements are not as stringent and the