Routine Costs Can Drain A Business
Rethinking a few spending habits on ’small stuff’ can save some cash.
The Beacon Journal:
Many small businesses waste money on routine expenditures simply because they don’t pay attention. While money spent on shipping, office supplies, service contracts, travel, phone and Internet services might be ’small stuff’ for some businesses, these routine items can quickly bleed needed cash.
Stiff competition and thin profit margins have made running lean a necessity for most small businesses, so it is important to establish smart buying habits to protect your profits. The steps are not complicated and do not require fancy formulas. When it comes to cutting costs, common sense prevails. A successful approach to saving money on a regular basis relies on small, sustainable steps.
Here are 5 ways to save your small business money on the simple things:
* Avoid buying only name-brand items in small quantities. Shop for bargains online. Superstores like Office Depot, Staples and OfficeMax offer ’store brands’ at reduced prices. When you establish an online account, they will often send coupons worth $10 or $20 off orders of $100 or more.
* Don’t photocopy high-volume items that you can print for less. Copies typically cost 5 to 15 cents each, even if you do them yourself, including paper, toner, labor and maintenance. Printing can lower costs to 3 cents or less. The biggest cost items are forms, fliers and form letters that you think you use in small quantities. But if you photocopy a few dozen per week, that can be thousands per year and you could save by having it printed in volume.
* Think of your inventory as company cash sitting on a shelf or in a warehouse doing nothing. Costs include storage, insurance and taxes, among other things. Keep good records and regularly root out dead items.
* Express shipments for next morning delivery are costly. Consider next afternoon or maybe 2- or 3-day service.
* Review vendor relationships at least annually for Internet services, phone, wireless, DSL, shipping, legal, printing and other day-to-day expenses. Prices and package deals change and you could be overpaying.
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