In the March issue of Entrepreneur Magazine I saw an article called Frugal is back. It is geared towards businesses and the article essentially boils down to six points
Systematic Savings - Don't skimp on the wrong things. Make sure you know how your business and employees function and do their work before cutting costs. Make sure costs cut will not decrease productivity, it should increase it.
Bartering - You've probably heard this a million times before, so I just make it simple. If you don't have the cash, exchange services with your business partners. It's a win-win.
Save by incentives - Giving your employees part of the cost savings can help encourage them to save your company money.
Don't get cheap on Coffee - If you don't give your people the right tools, in this case the right coffee, they will get it somewhere else. So know where to skimp, but don't skimp on the wrong things. Pay for good beans, use ceramic mugs (if paper is a must, visit freepapercups.com), and check out online deals.
Don't buy - Business is about Cash flow. So Lease, rent or borrow equipment. Less cash out means more cash to put to better income generating business activities.
Negotiate purchases - Buy cheaper goods by negotiating better deals. Negotiate yearly, if not more often. Establish upfront terms to negotiate regularly.
I think these tips are very helpful for a small business looking to grow and save cash. What about you? You can find the original article here.
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3 comments:
I love the idea of business bartering. I wish it was practiced more.
Hey, have you seen this? http://tinyurl.com/czflx7
@LisaNewton,
I think it is used quite frequently, but not in the black and white sense of it. It's more of getting other perks, discounts and additional services.
Direct Bartering can be found much more in young companies. my 2cents :)
@Henie
Thanks for the link. think I might join that in near future.
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