On a shoestring budget (and what entrepreneur isn't?), it really pays to
scrimp and save. Just in case you've forgotten the value of a hard-earned penny,
we've come up with a slew of money-saving ideas to boost your business's bottom
line-from cutting your legal bills to inexpensive ways to draw in customers.
Though some tips will save you more money than others, the end result of your
overall spendthrift strategy could add up to a bundle.
Penny-Pinching Promotions
1. Piggyback your advertising. Including
advertising material in other mailings, such as in invoices, saves postage and
other costs, says J. Donald Weinrauch, co-author of The Frugal Marketer.
Likewise, make the most of your point-of-purchase opportunities by tucking
coupons, newsletters or other promotional fliers in the bag with customers'
purchases.
2. Be a good neighbor. Split advertising and promotion costs with
neighboring businesses. Jointly promote a sidewalk sale, or take your marketing
alliance further by sharing mailing lists, distribution channels and suppliers
with businesses that sell complementary goods or services.
3. Ask the people you know for help. The kind of support you'd most
like to get from your contacts is referrals-the names of specific individuals
who need your products and services. So go ahead and ask! Your contacts can also
give prospects your name and number. As the number of referrals you receive
increases, so does your potential for increasing the percentage of your business
generated through referrals.
4. Got a happy customer? By telling others what they've gained from
using your products or services in presentations or informal conversations, your
sources can encourage others to use your products or services.
5. Make a special TV appearance. Local cable TV stations often have
very reasonable advertising rates at time slots throughout the day and night.
Though you won't necessarily reach prime-time viewers, you will make an
impression where it counts-in the comfort of potential customers' homes.
6. Offer expert advice. Teaching a class, speaking at a community
meeting, or writing an article for a local paper not only makes you look like an
expert but garners low-cost attention for your business.
Read more online here.
Internet Ideas
7. Start your search engines. Research your
market and find potential visitors for your site by looking through your
competitors' sites.
8. Cut costs when setting up your online store. Think going online has
to cost an arm and a leg? You can start out by selling items for next to nothing
on online auction sites like eBay
and Yahoo! Auctions. If
you want to create a professional storefront, there are several "Website in a
box" solutions available, usually for a low monthly fee.
Read more online here.
9. Start networking. Find blogs, message boards and social networks
that cater to your audience, and join the fray. "I didn't start [participating
in online discussion groups] to generate business, but as a way to find
information for myself on various subjects," says Shel Horowitz, owner of
Northampton, Massachusetts-based Accurate Writing & More and author of several
marketing books, including Grassroots Marketing. "But it turned out to be the
single best marketing tool I use. It costs only my time. [One] list alone has
gotten me around 60 clients in the past five years." Always include your URL in
your signature, but don't do any hard selling-most groups will ban you
immediately. Instead, provide useful information that'll make people will want
to click on your site.
10. Spread the word yourself. Are you letting people know what your
URL is? Try putting it on your letterhead and business cards and in e-mail
signatures-wherever potential visitors are likely to see it. Include it on
employee uniforms, any promotional items you give away, all press releases, in
your Yellow Pages ad and on company vehicles.
Location Logic
11. Get a suite deal. You don't have to run
your office full-time from an executive suite to benefit from its services. Many
home based entrepreneurs find executive suites meet a range of needs, including
access to a private mailbox and a receptionist to answer or forward calls to
your home office. Visit the Office Business Center Association International
Website for
more information.
12. Be mobile. While the costs of establishing a permanent retail
location can be steep-you may spend up to $100,000 or more, with leases spanning
three to 10 years-carts, kiosks and temporary spaces can be an easier way to get
a foot in the door with a lot less risk. The upfront investment for a kiosk or a
cart ranges from just $2,000 to $10,000, according to Patricia Norins, publisher
of Specialty Retail Report. License agreements for carts and kiosks are
shorter and are usually renewed every month up to one year depending on the
location. This arrangement makes it easy for entrepreneurs to "come in, try it
out for a month, and if their product isn't working, shift to a new product line
or close up shop and move to a new location," Norins says.
Office Overhead
13. Buy recycled printer cartridges. Check
Google or your Yellow Pages for a local recycled printer cartridge supplier. Or
if you want to mix your charitable instincts with your printing needs, visit
www.lasermonks.com, a
remanufactured printing supply company run by a group of monks in Wisconsin who,
after business expenses are paid, donate their profits.
14. Fill it out for free. Instead of buying forms at your local office
supply store or spending time creating them yourself, you can find tons of free
forms online that you can download, customize and print. Our free forms on
Formnet can get you started.
15. Get free software. Visit
Download.com to try
hundreds of software products for free through trial downloads, freeware and
limited versions of the full product. Visit our
Complete Guide to
Software to find the best software options for small businesses, including
many links to the free trials of those brands. Another tip: If you haven't found
what you're looking for through Download.com or our software guide, check out
the manufacturer's site. Most offer free trial downloads.
16. Buy used equipment. Save up to 60 percent by buying used computer
equipment, copiers and office furniture from stores such as the nationwide Aaron
Rents & Sells chain. Auctions and newspaper classifieds are other good sources
of used equipment.
Insurance Intelligence
17. Save by association. When looking for
insurance, check with your trade association. Many associations offer
competitive group insurance.
18. Be prepared. Buying appropriate insurance upfront saves money in
the long run, says Jeanne Salvatore of the
Insurance Information Institute,
a nonprofit organization in New York City. Consider what situations would be
catastrophic to your business and protect yourself with adequate insurance.
"Disaster recovery," says Salvatore, "is one area where business owners
shouldn't scrimp."
19. Make a foul-weather friend. By arranging for an alternative place
to run your business in case of a major disaster, you may be able to save on
business interruption insurance, advises the Insurance Information Institute.
For instance, you could arrange with a firm in the same industry to use their
facilities in case of damage, and vice versa.
20. Check up on your medical insurance. Before choosing a medical
insurance carrier, ask for information on past claims and the loss ratio of paid
claims to premiums, advises the
Council of Better Business Bureaus in Arlington, Virginia.
21. Raise your deductible. Raising the deductible on your insurance
usually lowers your premiums. Even if you end up having to pay the deductible,
it's likely to be less than the amount you save.
Employee Economics
22. Aim to lease. Employee leasing-in which
you turn over your work force to a professional employer organization that
leases your employees back to you-can save you substantial cash on employee
benefits, says Bruce Steinberg at the American Staffing Association (ASA). For
referral to a leasing company near you, visit the ASA online at
www.staffingtoday.net.
23. Go with the flow. Rather than paying for employees who sit idle
when business is slow, consider hiring temporary employees to handle surges in
business.
24. Make experience count. Get free or low-cost help-and give local
college students a chance to learn the ropes-by hiring interns.
25. Use independent contractors. Employers generally don't have to
withhold or pay any taxes on payments to independent contractors. But be very
careful that your independent contractors fit the definition provided by the IRS
or you could face penalties.