10 Effective Ways to Reduce Your Costs

24th August 2009

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Barter: try bartering goods and services with other businesses. You should try to trade for something before you buy it. Barter deals usually require little or no money therefore improving your cashflow.
Network: try networking your business with other businesses. You could trade leads or mailing lists thus cutting down on your marketing and advertising costs. You may also try bartering goods and services with them.
Wholesale/Bulk: you will save money buying your business supplies in bulk quantities. You could get a membership at a wholesale warehouse or purchase them through a mail order wholesaler. Networking with other businesses next to you can help reduce postage costs and share supplies bought in bulk.
Borrow/Rent: if you only need some equipment for a short period of time try borrowing it from someone or renting in a shop for a small fee.
Free stuff: researching sites on the Internet can help you find free software, graphics, online business services etc.
Auctions: online/offline auctions may offer better deals on business supplies and equipment compared with retail prices.
Plan ahead: make a list of supplies and equipment you will need in the future and keep an eye for big sales. Purchase everything before you need it while it's on sale.
Negotiate: you should always try to negotiate a better deal before purchasing anything. Research a number of suppliers and have some figures at hand. Even if you don't get a better price you may win something else: better payment terms, free add-on services, etc.
Search: never stop searching for a better deal of lower price and higher quality. You can use the results to approach your current supplier to start negotiations.
Reduce training costs: training can be very expensive. Offer employees incentives to pay for own training (or part of it) by giving them other perks like paid time off, additional leave, vouchers.

Tamara Baranova
TJConsulting - Your Virtual PA
www.tjconsulting.co.uk

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