One of the primary concerns all small businesses have is saving money. When it's time to trim the fat, most look for one giant expense to decrease or eliminate in order to stay within budget. More often than not, it doesn't work that way.
Most budgeting experts will tell you that re-evaluating your overall expenses and cutting each by just a bit will actually gain you more ground than doing without something major that you really need. Here are a few ideas of areas to look at and costs to reduce that can have a major impact on your overall profits.
1) Internet Access - Every online business owner must have access to the Web. But consider this. The market is so flooded with ISPs that you have a lot of room to dicker. Start by searching the Internet under keywords like "cheap internet access" or "discount isp" to bring up lists of possibilities. Then, do one of two things.
(a) Try some of these independent ISPs. Smaller companies can have high quality service and support just like the "big boys". One business owner I know recently switched from Prodigy ($21.95/mth) to a smaller ISP that only charges $12.50/mth with no contracts. She actually liked the new provider better and it costs her about half as much. [Savings of $113.40 per year.]
(b) Renegotiate with your existing ISP. Most larger ISPs know you have a choice of a thousand other companies. Because of this, they are normally more than willing to renegotiate your costs. Be honest. Tell them you are a small business owner and you need to cut expenses. Explain that you've been pleased with their service but will be forced to go with someone else if some sort of arrangement isn't worked out. Another friend of mine did this and received 6 months free! Most will offer 2-3 months free and/or a discount with an annual agreement. NOTE: When you approach your ISP, be fully prepared to switch to someone else if your offer is rejected. [Savings of $105.80 per year with 3 months free and reduced, annual rate.]
2) Switch From A Merchant Account To A Payment Service - If you have a low volume of credit card transactions, it might benefit you to switch from a merchant account to some sort of payment service like Pay Pal or ClickBank. Statement fees, monthly fees, discount percentages and the like can all add up to big money.
While payment services normally have reduced fees, they do have higher "per transaction" costs so you'll have to do some math to find out if this is a good idea for your business. Just take an "average" invoice amount from a sale and multiply it times 12 to get a base total to work with. Now, add in your 12 months worth of fees for statement, monthly access, discount percentage, per transaction cost, etc. This is your "example" total. Do the same with several payment services using their costs to see which one, over time, would be less expensive for you.
If you were paying a $15 statement fee, $20 monthly fee, 3% + $.35 per transaction and $25 monthly gateway fee, your annual expenses would be $742.20 for an average transaction of $50.00. Your annual fees for a payment service with 3.5%, $1.00 per transaction and a one-time $50.00 set up charge would only be $83.00 per year. [Savings of $659.20 per year.]
3) Re-evaluate Your Long Distance Costs - Competition is the small business owner's friend! With hundreds of long distance companies out there, you can drastically reduce your charges instantly. Again - use the 'Net to search for inexpensive long distance service. A business owner I know changed from a MCI "program" to one of those 10-10 companies and reduced her per minute charge from $ .07 to $ .05. Depending on the volume of calls you make, some programs offer rates as low as $ .03 per minute. [Estimated savings of $20-$30 per year for 1,000 minutes.]
From just these three little things, we've saved an estimated $802.60 per year. That's enough to make anyone's spreadsheet sing! Go through your list of costs and you will most likely find other expenses that can easily be reduced with a bit of research and a phone call or two.
Diane C. Hughes * ProBizTips.com
FREE Report: Amazingly Simple (Yet Super Powerful) Ways To Skyrocket Your Sales And Build Your Business Into A Tower of Profits! ==>> http://madmarketer.com/diane
house refresh service Morton Grove ..Are you tired yet of all the books out there... Read More
One of the primary concerns all small businesses have is... Read More
One of the most common issues that comes up for... Read More
What will your business look like a year from today?If... Read More
If you run a pressure washing business it is a... Read More
This morning, I went to take a short walk outside.... Read More
When pressure washing heavy equipment each piece of equipment has... Read More
Providing high quality customer service is a must for any... Read More
Opening a carpet cleaning business is a great way to... Read More
During the California Recall Election, I was very interested. Without... Read More
One of the biggest fears people have about starting a... Read More
In this paper, I will:1. provide a framework for creating... Read More
Every employee would like to earn as high a salary... Read More
Many investors and business ethics professionals are calling for more... Read More
Here are some important points to take note of if... Read More
How much is your time really worth? Is it worth... Read More
Top 3 Ways to Maximize Your Small Business Server Consulting... Read More
A career coach could be simply defined your job seeking... Read More
Would it help you as a real estate investor to... Read More
Q: I will be retiring this year at age 60... Read More
No matter what kind of small business you have, you... Read More
A suggestion box is a really good idea for your... Read More
Many times small businesses want to expand their businesses and... Read More
If you are worried about how many different business cards... Read More
"Order Now!" "Your Business Will Fail If You Don't Have... Read More
cleaning service near Mundelein ..Are the promoters and consultants destroying the market for Reverse... Read More
1. TargetYou are not all things to all people. Decide... Read More
If you're like me, you love accounting. It's so fascinating... Read More
One of the biggest fears people have about starting a... Read More
Summer is a time for the outdoors, for that well-deserved... Read More
We love Wichita because it has great all round weather... Read More
(Although this article is geared towards small business owners, the... Read More
There is a great deal of abuse going on in... Read More
Franchising has made the world look really small. The well... Read More
Microfiber cleaning towels have been around for about ten years... Read More
How many "get rich schemes" have you joined? Or have... Read More
Quality control in franchising companies is paramount and all franchising... Read More
You may be in Mail Order, Direct Mail, or you... Read More
Frankly, given the legal and regulatory requirements involved in attempting... Read More
Habit: A consistent behavior you perform so frequently that it... Read More
CONSIDERING COMPANY NEEDS: In identifying your needs for the internship,... Read More
Many ventures are faced with the challenging task of raising... Read More
Entrepreneurs are hardy stock. But sometimes hardiness can get you... Read More
I'll be the first to admit that I went a... Read More
I only have to point to the 555 plus failed... Read More
With all the cabinet refacing business opportunities out there, you... Read More
You know your prospects need what you sell. You know... Read More
There is significant competition in auto detailing and car washing.... Read More
Every company has a value proposition. That is a statement... Read More
If you run a mobile car wash, mobile fleet washing... Read More
Small Business |