I bet that got your attention! Reducing costs to maximize profit is something that every business owner knows, but it seems to get lost in the busyness of our day-to-day running of the business.
Here is a list of some savvy ways to reduce the cost of doing business:
Barter – You could barter goods or services with other businesses. Try to trade for something before you buy it.
Borrow/Rent – Have you purchased a piece of business equipment and only needed it for a short period of time? You could have borrowed the equipment from someone else or rented it from a rental store instead of buying it.
Free Stuff – Try visiting the thousands of “freebie” sites on the Internet before buying business supplies. You can find free software, graphics, legal forms, online business services, etc.
Search – You could always be on the lookout for new suppliers for your needs. You will never know when you meet another supplier with lower prices and better quality. When you find one, try pointing the difference to your current supplier. You may be able to get a better deal from him and not have to change. Do not be satisfied with just a few. You never know when your favorite supplier may decide to go out of business.
Network – Could you trade leads or mailing lists with another business similar to yours? This will cut down on your marketing/advertising costs. If you do not have a leads list, try bartering your goods/services for their leads.
Plan Ahead – Make a list of supplies or equipment that you will need in the future. Watch for stores that have big sales, and purchase your items when they go on sale before you need them.
Used but Not Spolit – If your equipment and supplies need not to be new, buy a second hand or used one. Cars, desks, file cabinets, etc. can be found at garage sales, used stores, on message boards, and free publications. Some excellent items are sometimes offered when a business decides to relocate or is closing.
Negotiate, negotiate, negotiate! This has become a lost art. You should always try to negotiate a lower price for any business equipment or supplies. It does not hurt try to save some costs by bargaining with a supplier.
You might find these things mentioned above hard to do but with a little practice, you may find some of them very effective when it comes to reducing costs on your balance sheet. It certainly takes some determination to acquire a good habit of saving costs!
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