Introduction | Advertising | The Internet & Your Website | Doing Business with the Gov't | Labor Force | Economizing | Going Green | Recovery
Economizing
Small business cost-savings techniques tend to be similar to household financial strategies. Simple, yet effective, methods can make a significant difference over time. Practical steps, like balancing a business checkbook regularly, having a strong cash reserve, renegotiating rates services such as shipping, and writing down a financial plan can go a long way in cutting costs and increasing savings. Businesses and employees can learn new skills, or remember old ones, to also save money. For example, collating and stapling are easy enough tasks and by doing them yourself, you don’t have to pay a printer. Just remember that cutting too much out can hurt your business, which makes it essential to find a happy medium between spending and saving.
“Remember that you can’t cut your way to the bottom line. While you want to look for cost savings wherever possible, you can’t lose focus on business development. No matter what the economic conditions may be, there are always opportunities to grow sales. Look at your business model and see if there are new ways to provide existing customers with more product/service lines; and keep striving to get new customers.” – Rick Leibowitz, North Country SBDC
“Economizing is fine but it’s only half of the issue of survival under tough economic conditions. I feel that the more important half is the development of new markets to place your products/services, accompanied by an improvement in your existing customer service. That way you cover both ends of the equation. Sure you can do a number of things to save money, but that will do you little good if you don’t increase or at least consolidate whatever market you might have. And, BTW, this is not brain surgery....it is going back to basics and paying attention to sound business fundamentals.....it could not be simpler than that.” – Arnaldo Sehwerert, Mid-Hudson SBDC
TIPS
- Prepare detailed contingency plans that will allow you to rationally scale down your business and remain solvent and/or profitable
- Have a strong cash reserve - a rule of thumb is to have at least enough cash to fund yourself through one year
