Opinions expressed by Entrepreneur contributors are their own.
In a volatile economy, on a shoestring budget (and whatentrepreneur isn't?), it really pays to scrimp and save. Justin case you've forgotten the value of a hard-earned penny,we've come up with a slew of money-saving ideas to boost yourbusiness's bottom line-from joining a prepaid legal plan orlogging on to the Net to auditing your commercial lease and evenunplugging your coffee maker. Though some tips will save you moremoney than others, the end result of your overall spendthriftstrategy could add up to a bundle.
Marketing
1. Piggyback your advertising. Including advertisingmaterial in other mailings, such as in invoices, saves postage andother costs, says J. Donald Weinrauch, co-author of The FrugalMarketer (Amacom). Likewise, make the most of yourpoint-of-purchase opportunities by tucking coupons, newsletters orother promotional fliers in the bag with customers'purchases.
2. Wait till the last minute. To keep print advertisingcosts down, consider "remnant" advertising. Many magazinepublishers offer last-minute, unsold, discounted ad space.
3.Be a good neighbor. Split advertising andpromotion costs with neighboring businesses. Jointly promote asidewalk sale, or take your marketing alliance further by sharingmailing lists, distribution channels and suppliers with businessesthat sell complementary goods or services.
4. Make a special TV appearance. Local cable TV stationsoften have very reasonable advertising rates at time slotsthroughout the day and night. Though you won't necessarilyreach prime-time viewers, you will make an impression where itcounts-in the comfort of potential customers' homes.
5. Go back to school . . . and introduceyourself to the head of your local college business program. Manyof these programs build community work into their curriculum andcan provide valuable assistance in writing or revising yourbusiness plan-or doing market research-for free. For moreinformation about such programs, contact the Small BusinessAdvancement National Center at (501) 450-5300 or at (http://www. sbanet.uca.edu/).
6. Be open to suggestions. For free market research, justask your customers. Set up a suggestion box at your place ofbusiness (or online), suggests Weinrauch. Ask customers to fill outtheir names and addresses along with their suggestions, andyou've got the makings of a mailing list, too. While you'reat it, ask your employees for cost-saving suggestions.
7. Follow the gurus. Jay Conrad Levinson is one of manymarketing gurus to offer free marketing advice on the Web. Checkout his free weekly Web magazine, Guerrilla Marketing Online, at(http://www.gmarketing.com).
8. Offer expert advice. Teaching a class, speaking at acommunity meeting, or writing an article for a local paper not onlymakes you look like an expert but garners low-cost attention foryour business.
Communications
9. Tune in to the Bells. Shop around for the bestlong-distance deal. For a comparison chart of major long-distancecarriers' features, services and discounts, send $5 and aself-addressed, stamped envelope to the nonprofitTelecommunications Research & Action Center, P.O. Box 27279,Washington, DC 20005.
10. Dial toll-free. Before calling a vendor, supplier, oreven a customer, check the toll-free directory at (800) 555-1212 tosee if they have a toll-free number. Or check out AT&T'stoll-free number directory online at (http://www.tollfree.att.net/dir800/).
11. Send just the fax. Rather than waste paper,transmission time and effort on a fax cover page, use a Post-itnote or simply write at the top of the first page you'resending.
12. Set the standard. Send faxes in standard rather thanfine mode to cut transmission time.
13. Collect some stamps. If you have free local calling,consider faxing all your local correspondence to save on postage,suggests David L. Scott, author of The Guide to Saving Money (TheGlobe Pequot Press).
14. Wait till after hours. Send outgoing faxes afterbusiness hours and benefit from significantly lower long-distancerates.
15. Give up your car phone. Use a pager instead.You'll save on costly cellular bills, but you can still bereached in an emergency.
Technology
16. Take the electronic avenue. By setting up an e-mailbox on the Internet, you can virtually eliminate many courier,overnight and postal fees. Get an e-mail account either through anInternet service provider (ISP) or a commercial online service. Forfurther savings, read and compose all your e-mail offline.
17. Start your search engines. Research your market andfind potential visitors for your Web site by looking through Usenetnewsgroups (forums on the Internet where people post messages forpublic viewing) and special-interest groups related to your targetmarket, product or service. Or, visit America Online's SmallBusiness Center, which includes libraries of small-businessinformation you can download at no charge. For more extensiveonline information, use Yahoo's Business Resources (http://www.yahoo.com).
18. Advertise on the Net. Check out the InternetAdvertising Resource Guide (http://www.voyager.net/adv/internet-advertising-guide.html),a Web site that includes information on everything from onlineadvertising to how to get to other useful sites.
19. Cut costs with a cyberstore. More than 50 cybermallsoffer advertising space on the Net. The Branch Mall (http://www.branchmall.com), forexample, helps you set up a Web page in a virtual mall for under$1,000.
20. Create your own Web site. Visit the Web MarketingInfo Center at (http://www.wilsonweb.com/rfwilson/webmarket)for links to Web marketing resources, as well as information oncreating your own site for less than $1,000.
21. Advertise on someone else's site. Many Web siteowners will provide a link on their page to your Web site for afee. For information, visit the IPA Online Advertising Index at(http://www.netcreations.com/ipa/adindex/).
22. Get free software. Dial into one of the many 24-houronline software stores that let you download freeware and low-costshareware. (It's easier if you have a high-speed modem.) Lookfor freeware and shareware through your online service provider,directly through the Internet or through online bulletin boardservices.
Leasing Retail or Office Space
23. Look over your lease. "Lots of people don'trealize they're being overcharged on their commercialleases," says Greg Gimba, managing partner for Anet ConsultingGroup Inc., a global strategic marketing firm in Daytona Beach,Florida. Gimba recommends auditing your lease agreementregularly-with the help of an attorney familiar with your type oflease. Pay special attention to the stated square footage and"shared costs" you pay for maintenance of common areas(which you should ensure are actually being maintained).
24. Lower your overhead. Share office overhead expenseswith other business owners by locating in an executive suite.
25. Get a suite deal. You don't have to run youroffice on site to benefit from an executive suite. Many homebasedentrepreneurs find executive suites meet a range of needs,including access to a private mailbox and a receptionist to answeror forward calls to your home office-all for about $150 to $250 permonth.
Utilities
26. Tune in to your cellular phone bill. "You'dbe surprised at the number of errors," says Gimba."Often, you're charged for calls that didn't gothrough."
27. Put things in a better light. Using fluorescentrather than incandescent light bulbs conserves energy and lowersyour electric bill.
28. Use your entrepreneurial clout. "Utility[companies] have a stake in the economic development of a communityand often offer special rates to entrepreneurs," says PeteCollins of New York City-based Coopers & Lybrand LLP.
29. Unplug your coffee maker. Save electricity by turningoff the coffee maker in your break room, suggests Scott. Pour thefresh coffee into a large thermos instead.
30. Don't give 'em so much garbage. Manybusinesses overpay to have their garbage picked up daily, saysGimba. "Half the time, your containers aren't evenfull," he says. "Reduce costs by reducing service toevery other day."
Supplies
31. Buy recycled laser printer cartridges. Check theYellow Pages for a local recycled laser printer cartridgesupplier.
32. Buy recycled batteries. The Battery King inParkersburg, West Virginia, offers recycled batteries at up to 25percent off regular prices. Customers can mail in their old laptopcomputer or camcorder batteries to have the cells replaced; thecompany ships worldwide.
33. Time your payments. Ask suppliers if they givediscounts for early payment. If not, it's to your advantage topay your bills-including utility, tax and supplier-as late aspossible without incurring a fee, advises Scott. "The longerfunds are under your control," he says, "the longerthey're earning a return for you rather than someoneelse."
34. Draft a savings plan. Make your laser printercartridges last longer by using draft mode to print interofficememos and other less important documents.
35. Form a buying alliance. Join with another business ortrade association for bulk purchasing and other discounts.
36. Cut down on copies. Monitoring your use of copierssaves on supplies and maintenance.
Inventory
37. Get reacquainted with your inventory. What withwarehousing, handling and insurance, inventory carrying costs oftenexceed 25 percent per year, says Collins. To recoup some of thoseexpenses, present the product in a different light: "Restagingan old product is usually less expensive than introducing a newone," says Weinrauch. "Often all that's needed is toupdate its image, make improvements or create a spinoff."
38. Junk it. Get rid of unsold, damaged or returnedmerchandise at year-end, advises Holmes Crouch, author of 18 taxbooks. Advertise a year-end "fire" sale and save theadvertisement for IRS documentation; then whatever you don'tsell, give to the dump and get a receipt. "The lower youryear-end inventory," says Crouch, "the higher your costof goods sold-and the lower your reported net income andtaxes."
Equipment
39. Buy computers by mail. You'll pay for shipping,but the savings of not having to pay state sales tax often makes upfor it.
40. Buy used equipment. Save up to 60 percent by buyingused computer equipment, copiers and office furniture from storessuch as the nationwide Aaron Rents & Sells chain. Auctions andnewspaper classifieds are other good sources of used equipment.
Business Vehicle
41. Consider leasing. If you put lots of mileage on yourbusiness vehicle and expect to drive it for less than five years,try leasing. (Beware, however, of mileage limits and nonrefundabledeposits, which may make leasing less attractive.) Leasing frees upcapital and enables you to drive a luxury car for less.
42. Put your best fleet forward. Ask your dealer if youqualify for a cost-saving fleet incentive program. Though suchprograms are typically geared toward fleets of 10 or more cars,some dealers will work with small-business owners.
Insurance and Employee Benefits
43. Save by association. When looking for insurance,check with your trade association. Many associations offercompetitive group insurance.
44. Shop around. At the end of each insurance policyperiod, review your business's needs and get several bidsbefore renewing your policy.
45. Be prepared. Buying appropriate insurance upfrontsaves money in the long run, says Jeanne Salvatore of the InsuranceInformation Institute, a nonprofit organization in New York City.Consider what situations would be catastrophic to your business andprotect yourself with adequate insurance. "Disasterrecovery," says Salvatore, "is one area where businessowners shouldn't scrimp."
46. Make a foul-weather friend. By arranging for analternative place to run your business in case of a major disaster,you may be able to save on business interruption insurance, advisesthe Insurance Information Institute. For instance, you couldarrange with a firm in the same industry to use their facilities incase of damage, and vice versa.
47. Check up on your medical insurance. Before choosing amedical insurance carrier, ask for information on past claims andthe loss ratio of paid claims to premiums, advises the Council ofBetter Business Bureaus in Arlington, Virginia.
48. Raise your deductible. Raising the deductible on yourinsurance usually lowers your premiums. Even if you end up havingto pay the deductible, it's likely to be less than the amountyou save.
49. Make an adjustment. It often pays to adjust yourhealth insurance stop-loss amount so that you pay a higherpercentage, capped at a lower amount. Though in a worst-casescenario you could end up with more out-of-pocket expenses, yourpremiums will be lower.
50. Review your rates. "Often, business owners areclassified for workers' compensation insurance under the wrongrate by their insurance company," says Gimba. "As aresult, you may not be getting the proper discount."
51. Have employees chip in for health care. Givingemployees more "ownership" of health benefits increasestheir appreciation of your health-care offerings and takes some ofthe costs off your hands.
52. Don't leave well enough alone. Sponsoring awellness program for your employees can cut your health-claim andinsurance costs. Promote a bike-to-work week or publish an employeenewsletter of health tips, for example.
53. Offer perks. Often, it's the little things thatmake employees happy-and they don't have to cost a bundle.Consider buying movie tickets for local theaters at a bulkdiscount, getting a corporate rate at your local gym, or offeringflextime.
Staffing
54. Aim to lease. Employee leasing-in which you turn overyour work force to a professional employer organization that leasesyour employees back to you-can save you substantial cash onemployee benefits, says Bruce Steinberg at the National Associationof Temporary and Staffing Services (NATSS). For referral to aleasing company near you, contact NATSS.
55. Go with the flow. Rather than paying for employeeswho sit idle when business is slow, consider hiring temporaryemployees to handle surges in business.
56. Provide cross-training. If employees can handle morethan one job, you may not need extra temporary help during peakperiods, suggests Collins.
57. Make experience count. Get free or low-cost help-andgive local college students a chance to learn the ropes-by hiringinterns.
58. Use independent contractors. Employers generally donot have to withhold or pay any taxes on payments to independentcontractors.
59. Commission your sales force. Overhead, salaries,incentives, training costs, fringe benefits and expenses add upwhen you're hiring your own sales representatives. Contractingindependent manufacturers' sales reps, paid on commission only,is less expensive-and often equally effective.
Travel
60. Don't touch that dial. Never use hotel or payphones for long-distance calls before inquiring about the charges,says Scott. If charges are too high, ask to be connected to yourregular long-distance company.
61. Press the pound (#) key. If you're using a chargecard to call from a hotel, avoid costly "connect"surcharges for each call by placing all your calls consecutively.Rather than hanging up after each call, press the pound key. Afteryou hear the dial tone, dial the next number without redialing youraccount number.
62. Prepay when you're away. "Prepaid phonecards can be a good deal," says Scott. "You typically paya flat fee of 20 cents per minute or less, no matter what time youcall." Not only do you avoid a surcharge for each call (aswith regular calling cards), but you gain significant savings ifmost calls are made during weekday business hours.
63. Consider a consolidator. Save a bundle by bookinghotel reservations through a reselling consolidator. AltamonteSprings, Florida-based Central Reservations Service, for example,offers a discount of
10 percent to 40 percent on accommodations at no charge tocallers.
64. Keep looking for lower rates. Always ask hotels ifthey give discounts for business travelers or any groups you maybelong to. Once you arrive at your hotel-but before telling theclerk you have a reservation-ask about the lowest available rate.The rate they quote may be even lower than the one you were toldover the phone.
65. Cash in on car rental discounts. Sometimes smallerfirms offer better deals than national chains. Ask if you qualifyfor any discounts-for AAA or frequent flier program members, forexample.
66. Avoid a collision course. Don't pay the high costof collision and comprehensive insurance through a car rentalcompany if you don't have to. Not only does your personal autoinsurance policy probably cover you, says Scott, but many creditcards include car rental insurance if you rent a car using thatcard.
67. Call on all car rental firms. It's never too lateto negotiate for better terms: "Even if you already have areservation, it pays to do some last-minute shopping at theairport," says Scott. Cancellations and excess inventory maymean one agency can cut you a better deal than another.
68. Fly for free. Build your airline free-travel vouchersby using a credit card that offers frequent flier miles. Be sure,though, you're disciplined enough to pay off your card everymonth.
69. Don't give up on a discount. If you call anairline and learn all their discount seats are sold out, don'tgive up. "Airlines limit discounted seats on each flight,often based on the number of seats they expect to sell at fullprice," says Scott. "If a flight doesn't fill asrapidly as expected, they might open additional discountseats." It could pay to wait for a day or so and try, tryagain.
Postal
70. Clean up your mailing list. The U.S. Postal Servicewill clean up your mailing list for free, correcting addresses,noting incomplete addresses and adding ZIP+4 numbers so you'llbe eligible for bar-code discounts.
71. Be an early bird. Send mail early in the day, and youcan usually expect to get one- to two-day delivery for the price ofa first-class stamp.
72. Make it a priority. Take advantage of the U.S. PostalService's Priority Mail $3 flat-rate 2-pound mailers. Theyoften arrive in two days and cost less than competitors'two-day rates.
73. Go for bulk. If you mail in bulk, consider abulk-mail permit. The permit costs $85 per year but means lowerpostage costs of 22.6 cents per piece.
74. Shop around for an overnight courier. Overnightdelivery rates for the major couriers are competitive; however, ifyou're willing to wait a few hours-or even an extra day-youcould save.
Entertainment, Gifts and Taxes
75. Dine at adiscount . . . dis-creetly. Use discountdining cards, such as Schaumburg, Illinois-based Dining á laCard. You can save 20 percent at restaurants nationwide withoutshowing coupons or cards at the restaurant; instead, you get amonthly refund check in the mail.
76. Waste not. Don't throw away your old computersand office equipment. Donate them to a nonprofit organization orschool and get a tax write-off.
77. Give what it takes. Business owners can take a 100percent write-off of each business gift up to $25. Compare that tothe 50 percent write-off for business meals and entertainment, andgift-giving has never looked better. Itemize any gifts-includingthe name of the recipient and the general nature of your businesswith that person-and remember that husband and wife are treated asone recipient, advises Crouch.
78. Mind some petty pointers. Don't get carelessabout your petty cash account. "Though you don't needreceipts for expenses under $75, you should still track theseexpenses since they can add up," advises Crouch.
79. Hire your children. If your children are at least 14years old and pay their own taxes, it pays to take advantage oftheir lower tax bracket. "You can essentially transfer incomefrom your business to them [to save money]," says Scott.
80. Take a stand on taxes. If your business is new in theneighborhood, you may be at a higher tax rate than those who havebeen there longer. "Go to city hall to determine what yourneighbors are paying, and use this to negotiate a betterrate," says Collins. "Expanding businesses can oftennegotiate with community authorities, who want them to stay in townrather than move and take jobs elsewhere."
Banking
81. Make credit comparisons. If you tend to run unpaidbalances on your credit cards at the end of the month, shop for acard with a low interest rate. If you pay in full, it's moreimportant to avoid an annual fee and look for a longer graceperiod. "Often credit card issuers waive the annual fee orreduce the interest rate if you ask," says Scott. "Justtell your credit card company you've had several solicitationsfrom other companies with more favorable interest rates or noannual fees, and ask if they will reduce yours."
82. Avoid cash advances. "Credit card companiesusually charge an upfront fee of up to 2 percent of the advance,with interest accruing immediately," says Scott.
83. Bank on an early deposit. Make bank deposits earlyenough in the day so you get credit (and start earning interest)that day.
84. Establish a link. By linking your checking accountwith another account at your bank, you can usually avoid checkingcharges, says Scott.
85. Get checks in the mail. Ordering your checks from aprinting company often costs less than getting them from a bank.Options include Checks in the Mail at (800) 733-4443, or DesignerChecks, which displays a variety of business checks complete withpayroll stubs that you can order through the Internet at (http://www.hotnew.com/checks/).
Professional Services
86. Query your consultants. The professionals you workwith regularly are often easy to bargain with, thanks to therapport you've developed with them. Ask your insurance agent,accountant or attorney how you can cut back on their costs.You'd be surprised at the suggestions they might offer on waysto cut your premiums, reduce billable hours or avoid hugeretainers.
87. Choose a prepaid plan. Small-business owners canbenefit from a prepaid legal plan for taking care of basic legalneeds, says Theresa Meehan Rudy at the Washington, DC-basednonprofit legal reform group HALT. For about $10 to $12 per month,legal plan members typically receive help planning a will, freereview of legal documents and vendor contracts, and unlimited phoneadvice, plus reduced rates on other legal services. Forinformation, contact the National Resource Center for Consumers ofLegal Services in Gloucester, Virginia.
88. Be a legal eagle. When hiring an attorney, make sureyou have a written fee agreement to prevent surprises. It shouldinclude an estimate of the time to be spent on your case andspecify what is covered in the fee-including typing or copying-andwhat is not.
89. Learn something new. Rather than pay a consultant towrite your press releases, for example, hire one for an hour or soto show you how to do it yourself.
90. Run from the law. "Avoiding lawsuits is a bigfactor in business success," says Crouch. "Evenarbitration can get expensive." The best alternative: Try towork out any problems before they grow to the point that attorneysget involved. "Don't ignore any written or phonecomplaints."
Investing
91. Get ready to retire. Taking stock of your retirementplan options can significantly reduce your tax bill. Not only areyour contributions tax deductible, but the money in your retirementaccount compounds without taxation until withdrawn afterretirement. "One of the simplest plans to consider is aSimplified Employee Pension-Individual Retirement Account[SEP-IRA]," says Raymond Russolillo at Coopers & LybrandLLP. SEP-IRAs allow business owners to make tax-deductiblecontributions to employees' retirement accounts of up to 15percent of employees' incomes. Other retirement plans includeprofit-
sharing Keoghs and money-purchase pension plans. Russolillorecommends working with a financial planner to determine the bestplan.
92. Play the money market. Selecting a money marketmutual fund, rather than a checking account, for your longer-termfinancial needs often yields a greater return. "Look for amutual fund with low annual operating and other fees," advisesScott. Beware, however, of brokers who recommend frequentlyswitching funds since this often means a new sales fee.
93. Opt for a discount. Using a discount broker (such asCharles Schwab & Co. Inc., Fidelity or Quick & Reilly GroupInc.) to buy and sell securities can save you 50 percent or more onstock transactions compared to full-service brokerages.
Buying, Bartering and, Getting Paid
94. Stretch your budget with barter. Swapping one productor service for another is a good way to avoid cash outlays-andunload slow-moving inventory. If you'd rather not bargain withother businesses directly, hire a commissioned barter broker(listed in the Yellow Pages under "Barter"), or join acommercial barter club or exchange. The National Association ofTrade Exchanges (NATE) is a clearinghouse for member exchangesacross the country, allowing business owners to swap just aboutanything with anyone. Participants typically receive "tradedollars" for their goods or services, which are brokeredacross cities nationwide with the help of NATE.
95. Barter for better compensation. Barter can also be aninnovative way to supplement your employees' compensation. Forexample, you could offer your sign-making services to a barterexchange pool and, in return, receive the services of a localdentist. Then, instead of paying for dental insurance foremployees, you could provide them this valuable perk-without payingany cash.
Guen Sublette is a writer who avidly recycles used envelopesand paper clips to keep costs down in her Redondo Beach, Califonia,business.
Money Management/Other
96. Join an association. Many trade and businessassociations have reasonable membership fees and offer discounts oneverything from insurance, travel and car rental to long-distancephone service, prescriptions and even golf course fees.
97. Be reluctant to give credit. If you do extend credit,thoroughly check the client's credit background, says Collins.For less-than-credit-worthy accounts, Collins advises consideringthe following actions: Collect cash in advance; send partialshipments; request letters of credit, personal guarantees and apledge of assets; take out credit insurance; or think aboutfactoring (see below).
98. Consider the factors. Factors-companies thatessentially buy and then liquidate a company's accountsreceivable-provide an option to tied-up money, says Collins. Formore information, look in the Yellow Pages under"Factors."
99. Seek at least three bids on everything. Even mundanepurchases merit shopping around. If you quote a competitor'slower price, a supplier or vendor will often match that price towin your business.
100. Consult Uncle Sam. Call your nearest Small BusinessAdministration (SBA) office or Small Business Development Centerfor information on no or low-cost financing or growing a business.Also check out the SBA's Web site, which allows you to downloadnumerous useful publications for free, at (http://www.sbaonline.sba.gov).
The SBA has also published a free magazine in conjunction withPacific Bell, called Small Business Success, on streamlining yourbusiness operations. The 88-page guide (available by calling800-848-8000) includes information on online marketing and keepingup with the competition.
Contact Sources
Aaron Rents & Sells, (703) 256-0654, fax:(703) 750-0789;
Anet Consulting Group Inc., (800) 611-0660,(904) 426-5194, anet@worldnet.att.net;
The Battery King, (800) 666-2296, BatteryExp@gnn.com;
Central Reservations Service, (800) 873-HOTEL,(http://www.reservation-services.com);
Coopers & Lybrand LLP, 1301 Ave. of the Americas, NewYork, NY 10019, (212) 259-3399;
Holmes Crouch, c/o National Book Network,(800) 462-6420, (408) 867-2628;
Dining á la Card, (800) 253-5379, (http://www.dalc.com);
HALT, 1319 F St. N.W., #300, Washington, DC 20004,(202) 347-9600;
IB Your Office, (888) 950-1700, (http://www.ibyo.com);
Insurance Information Institute, (800) 942-4242;
National Association of Trade Exchanges, fax:(216) 732-7172;
National Association of Temporary and Staffing Services,119 S. Saint Asaph St., Alexandria, VA 22314, natss@natss.com.
