Practical Money-Saving Tips For Small Businesses

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

---

(P)Refer to Grow Your Business

(Although this article is geared towards small business owners, the... Read More

Perfecting Your Pitch

Why should you describe your business to others in 5... Read More

Six Essential Skills to Business Success!

The following are six essential skills to business success. You... Read More

Small Business Marketing Series ? Choosing a Niche Market

Many smaller businesses choose niche markets for various reasons and... Read More

Mobile Detailing Expansion Considerations

Expanding your business requires you to take a good hard... Read More

10 Best Practices to Consider as Your SBIR Negotations Approach Contract Signature

10 Best Practices to consider as your SBIR negotiations approach... Read More

Keeping your Business Alive

As long as you eat and breathe you will stay... Read More

Successfully Adding a Service To Your Business

There will come a time in your business where you... Read More

Boat Detailers; Add-on Products and Services

As a Boat Detailing Specialist, you may want to offer... Read More

Women and Small Business

In the book Women and Small Business author gives all... Read More

Franchise Sales and Use of Online Franchise Directories

Franchising Directory Sites-Paid Advertising, Lead Generation for FranchisingFranchising Directory Sites... Read More

Facts About Starting Elderly Group Home Businesses

There's been a recent rise in the number of elderly... Read More

Hispanic Small Business Advantage

One thing I have noticed in my travels to different... Read More

Get Free Payroll Forms Download from the Internet

Having a successful business means also having a good working... Read More

Dig Deep for Small Business Ideas Before You Start the Wrong Business

If you're serious about wanting to start a business, the... Read More

How to Integrate Yourself in Someone Elses Business

When do you need to get more involved with the... Read More

The Key to Small Business Growth? Buyer Alignment

Unfortunately for all buyers, each selling organization and their individual... Read More

Franchising Industry Burdened in Over Regulation

There were only an estimated 1800 active franchisors in this... Read More

Perception: What Are Your Patients REALLY Hearing?

Never underestimate the power of perception! Perception plays a major... Read More

Mobile Car and Truck Washing Vehicle Placement

To maximum potential profits and dollars in a mobile washing... Read More

Quality Controls for Franchising Companies Sample Outline

Quality control in franchising companies is paramount and all franchising... Read More

Small Business Failure? Nuts!

Pardon my enthusiasm, but a large part of your small... Read More

Naming Your Business: 3 Tips To Ensure Success

If you are just starting your business, or if you... Read More

Due Dilegence 101 Or What You Do Not Know Can Kill You! - Part 1

Introduction: This article is written as a general discussion on... Read More

Small Business Debt Collection Laws

In your small business debt collection laws will eventually become... Read More

Pressure Washing; How to Bid Concrete Cleaning Jobs

Remember the cleaning business is all about time ratio to... Read More

You Are Invited

Business card size works well for invitations to special events.What... Read More

Reclaim Equipment Detailing Industry and NPDES, EPA, Storm Water Rules

It behooves every professional mobile auto detailer to stay up... Read More

What Help is there for Veterans Starting a Business?

Some of the very qualities that attract people to the... Read More

When and Why YOU Are the Best Writer for Your Business Plan

WHEN you are operating or planning a small business that... Read More

7 Advantages to Incorporating

There's no question that hard work and a little luck... Read More

Employee Induction - Are you Inducting your People - A Practical How To

In today's fast paced marketplace it is easy to neglect... Read More

A Business Plan Is Not Worth A Cracker To A Struggling Business - A Plans The Last Thing It Needs

Before you start a business we encourage you to prepare... Read More