Save Money on Routine Costs

Many small businesses waste money on routine expenditures simply because they don’t pay attention. And while money spent on shipping, office supplies, service contracts, travel, phone and Internet services might fall into the category of “small stuff” for some businesses, these routine items can quickly bleed needed cash from your coffers in the blink of an eye.

Stiff competition and thin profit margins have made running lean a necessity for most small businesses, so it’s important to establish smart buying habits to protect your profits. The steps you can take are not complicated and do not require fancy financial 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 five ways to save your small business money on the simple things:

  1. Avoid buying only name-brand items in small quantities. Shop for bargains online. Superstores like Office Depot, Staples and Office Max offer “store brands” at reduced prices. And when you establish an online account, they’ll often send coupons worth $10 or $20 off orders of $100 or more.
  2. Don’t photocopy high-volume items that you can print for less. Copies typically cost five to 15 cents each, even if you do them yourself, including paper, toner, labor and maintenance. Printing can lower costs to three cents or less. The biggest cost items are forms, flyers 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.
  3. Think of your inventory as company cash sitting on a shelf or in a warehouse doing nothing. Costs include storage, insurance and taxes, among others. Keep good records and regularly root out dead items.
  4. Express shipments for next morning delivery are costly. Consider next afternoon or maybe two- or three-day service.
  5. 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 may be overpaying.

For more money saving ideas for your small business, contact SCORE "Counselors to America's Small Business." SCORE is a nonprofit organization of more than 10,500 volunteer business counselors who provide free, confidential business counseling and training workshops to small business owners. Call 1-800/634-0245 for the SCORE chapter nearest you, or find a counselor online at www.score.org.