Cost-Reducing Tips for the Small-Business Owner

 Cost-Reducing Tips for the Small-Business Owner

Summary:
One of the keys to running a successful small business or home office is controlling costs. Even the smallest expenses can quickly add up and cut into profits, keeping your business from moving forward.


Article Text:

One of the keys to running a successful small business or home office is controlling costs. Even the smallest expenses can quickly add up and cut into profits, keeping your business from moving forward.

Many small business owners know where their money is coming from, but they need to be clear about where it's going. This can have a significant impact on their company's cash flow.

It's important to review your spending regularly - quarterly if possible - to closely manage your outgoing expenditure and look for opportunities to make savings.

Demos Parneros, President of U.S. Staples Inc. stores, offers the following suggestions on how your business can save money.

* Buy last year's model. Furniture, computers, PDAs - there's always something new. But that also means there's always something old. If you wait until the end of the year or the sales, you can save on your office supplies.

* Buy in bulk and buy in advance. Buying frequently used items in bulk can save you a lot of money. Replenish your supplies before they run out. By thinking ahead and buying early, you have the opportunity to comparison store and take advantage of deals.

* Buy products that save money. Consider quality alternatives to national brands. Staples ink and toner products, for example, offer consumers quality products at a cost savings of 15 to 20 percent per cartridge.

* Take advantage of discounts. Professional and trade associations often offer their members discounts on insurance, travel, shipping and other general expenses. Some credit cards, such as the American Express Corporate Card for Small Business, can also give you discounts.

* Save on mailing costs. Postal costs for your business can add up quickly. To save money, you can use postcards or consolidate mailing. You can also purchase or lease a postage meter or get a letter scale to avoid excessive costs.