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Cost-Cutting Secrets to Help Grow Your Small Business

by: sharktooth on Date: Mon, 15 Nov 2010 Time: 3:52 AM

Starting a small business is both exciting and challenging. On one hand, you have all these possibilities open to you, and on the other hand, there are so many things demanding your attention. In an attempt to gain some credibility in the market, small business owners are tempted to copy the marketing and business campaigns of the industry leaders. They often pour money into expensive campaigns and opt for all the features that make them look like a long-established business. While in theory this is a great concept, practically it rarely works. The reason for this is that small business owners make the mistake of accumulating high overheads before they have started to generate significant amounts of revenue. The operational costs raise the financial goals that need to be met and add undue pressure on small business owners to make ends meet. Fortunately, there are a few simple ways that you can avoid that by keeping your costs to a minimum.

Keep Your Premises and Facilities Small and Simple

Depending on the nature of your business, the location of your business may or may not be important. If you are in the retail sector then it is important to position yourself somewhere where you will get foot traffic into your store.  It may be tempting to look at options in a mall or popular shopping area but these premises usually come at a premium. Rather, opt for a space where you will get enough traffic yet the costs are still affordable. The second aspect about the premises is to keep it as small as possible initially. Remember, the idea is to keep your costs low. If you have a business where you don’t see customers face-to-face then there are many more affordable options available. You may be able to start out working from home. You could consider an office-sharing scheme like a virtual office or you could get really cheap premises the other side of town.  Make sure that the rental on your premises is no more than a quarter of your monthly budget. Remember that you will still have other operational costs on top of that.

Don’t Insist on Getting New Equipment

Unless your business is based on unique and advanced technology, you should not be buying brand new equipment. Any accountant will tell you that even new equipment has completely devalued as an asset after two years. The cost of new versus second-hand equipment is vast and applies across the board from industrial machinery to office desks and computer equipment. Often, you can get good quality desks and chairs from second-hand stores, and from large companies that have relocated or are upgrading their office premises. Instead of paying $200 for a desk, you can probably pick up a good second-hand desk in excellent condition for less than half of that. Buying second-hand equipment is one sure way of keeping your costs low and making your start-up capital stretch a little further. Over time, as your business grows, you can then upgrade your equipment.

Be Smart About Your Telecommunications Costs

Research your options carefully before installing phone and fax lines for your business. Often, there are special packages available that offer a discount on multiple lines. You also may be able to get away with fewer lines than you initially thought. Consider how many people are working in your office. If it is just you and your assistant, is it really worth getting five phone lines?  You really can’t speak to more than one person at a time so even if the other lines are ringing, you won’t be able to attend to the calls.

Look for alternative communications options for your business. Today, technology provides many online tools that can make a huge impact on your business and the way you operate. In fact, the more of your business communications you can handle online, the more you will be able to keep your costs low. Operating on email and chatting to customers using VOIP rather than traditional phone lines can dramatically reduce your telecommunications costs. For things such as faxing, look into online options. Chances are you will already have an internet connection in place. Online faxing operates off this internet connection and negates the need for you to have a separate fax machine or fax phone line.  Online faxing also allows you greater document security and efficiency in terms of managing your time and work processes.

About the Author

Metro Hi Speed is a leader in email fax solutions for any sized business. Less expensive and more reliable than traditional fax services - you'll enjoy the convenience and well as the cost. Visit us today for more information on our small business and corporate fax solutions.

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