Easy Ways to Save In Your Small Business

You’ve heard it over and over again: The lack of cash flow is the number one reason most businesses fail. So it follows that every small and home-based business owner should know how to stretch a dollar. Here are seven of the easiest ways to rein in your business expenses:

1. Reduce, reuse, recycle
Rethink how you use and acquire resources. Do you toss out paper printed on only one side, or buy new toners instead of refilling the old ones as often as possible? Or do you waste money on inadequate data storage such as CD-Rs and DVD-Rs? You could save money by using flash drives, DVD-RWs and CD-RWs, which you can use multiple times without losing data.

Also, instead of shelling out extra money or going into debt to purchase new computers, printers or faxes, buy refurbished models instead. Many of these tech goods are refurbished to a high standard and may come with guarantees from the sellers. Or, you can simply replace the parts of your computer system that need replacing, rather than buying entirely new systems. These budget moves are also good ways to green your business.

2. Sign up for an office supply store card or newsletter
Some stationery suppliers such as Grand & Toy offer discounts to card members. In some cases you can save as much as 35 per cent on the supplies you need. Other merchants, such as Staples, offer weekly discounts that you can learn about through their newsletters or flyers. Some suppliers even throw in free delivery within their local area if your order exceeds a certain amount.

Also, don’t forget about Costco. This big-box store sells electronics, computers and accessories, and stationery supplies at highly competitive prices.

3. Don't always go with what you know
This requires getting out of your comfort zone. Take phone services; many people are still using traditional phone services for their businesses instead of cheaper services such as Vonage, Yahoo VoIP, or Skype. Some stick with their phone company’s long distance plan when they could save money by signing up with a competitor. Or some peope use the company that insures their homes to insure their businesses. But are they getting the best deal?

Often, people fear the paper work or the time it takes to set up a new service. One way around this is to ask your current provider to match a competitor’s price. Otherwise, you will have to decide if the potential savings of switching to a cheaper service outweigh the cons.

4. Hire the right people
You’ve probably heard the saying “be slow to hire and quick to fire.” This little nugget goes a long way when it comes to saving money. It takes a lot of time and money to search for and train a new employee. While small business owners are often overwhelmed and tempted to hire quickly, you shouldn’t shortcut the hiring process.

To trim your hiring expenses, be clear about what the job entails, your expectations, your business policies, and the skills the employee must have. If you can, get the employee to demonstrate their skills during the hiring process (for instance design a web page or database for you, or create a promotional brochure for one of your products) to see if they meet your standards.

Finetuning your hiring process also applies when you’re shopping for service providers on freelance sites. Don’t hire just anyone because you need to turn around a project quickly. If that provider screws up, you’ll have to pay someone else to fix their work. Or, you’ll have to do it yourself. How much is your time worth?

5. Shop online
Many stores, including book, furniture, software and computer stores, offer deals online that are not available in their bricks-and-mortar businesses. Some of these discounts can be substantial, up to 50 per cent off. Also, you can take advantage of deep discounts from resellers, whose prices often beat prices you’ll find in regular stores.

Online savings aren’t limited to products, however. You can also save on services, such as business incorporation, travel arrangements or freelance help.

6. Be a smart banker
Bank officials are great at promoting services with bells and whistles for your business account. Tune them out. Instead, choose the most basic account that gives you all the services you need. Get the generic checks, use ATMs, and bank online as much as possible.

Banks use advanced security technology to create a safe online banking environment, so the risk is low. Also, banking online saves you valuable time you can devote to other duties.

7. Keep your company logo simple
You can quickly rack up additional printing costs for business cards and letterhead if your logo has more than two colours. Keep it simple. Two colors don’t have to mean boring (think of CNN’s logo or the Nike swoosh). A vivid concept executed with sophistication can be just as powerful. Also, if you don’t have a quality laser printer at your disposal, you should find an affordable printing shop to do the job. You want your cards to be cheap, not look it.

Keeping your eyes on the bottom line can seem tedious at times. But as it becomes a habit you’ll find it easier. Plus, you’ll enjoy using those savings in other critical areas of your business.