In this tough economy, we need to be especially careful with our money if we want to survive.
One way is to scrutinize your business's budget and remove every dollar that doesn’t:
- bring in paying customers,
- retain current customers, or
- keep your business functioning.
For those expenses that are left, you need to make every dollar count.
One of the easiest ways to streamline your spending is to reduce the expenses you already have by renegotiating your bills. It’s not rude to call up your telephone provider and get your rates lowered. It’s good business. Don’t be shy, this is your livelihood. Consider new vendors. Many companies trying to get into the market are willing to give lower rates to get your business. Taking advantage of these offers may be a great way to save some money and help your new company grow.
Don’t worry if your contract, lease, or term hasn’t yet expired. Even if you are facing fees or fines for breaking a contract, it may still be profitable to switch companies. In some cases, the savings you find may be more than the fees, in other cases, your company may be willing to renegotiate if you are willing to extend your contract.
Partner with other small businesses to share expenses. Do you need shipping supplies? Do you want to do more advertising? The more you buy, the better pricing you can negotiate, so partnering with other small businesses can reduce your costs dramatically.
This is your chance to get lean and mean. When the market improves, you’ll be ready for it!
Lynn and Philip Spry are the authors of 19 Ways to Survive: Small-Business Strategies for a Tough Economy
The book is available in our Web store
, where you can read the initial chapters and see the full table of contents.Click cover image to enlarge