Cost Saving Tips for a Small Business

A small business owner needs to concern herself with running her business, making her business profitable and applying as much of that profit to the company bottom line as possible. One of the ways that an entrepreneur can retain more of her profit is to employ cost-saving tips for a small business.

Buy Used Or Refurbished

One of the ways a small business can save money is to purchase used or refurbished items, according to online financial resource Bankrate. Used office furniture can be just as effective, and serve the same useful purpose, as brand new office furniture at a cost savings. Electronic equipment, such as copiers and computers, can be purchased as refurbished by the manufacturer or an authorized manufacturer's representative. A refurbished unit has been repaired and checked by a technician, and often comes with a limited warranty.

Start Advertising Group

Team up with businesses in your area that are not your direct competition, and begin purchasing advertising as a group, suggests Entrepreneur website. If you go into buying newspaper, radio, magazine or television advertising with one or two other companies, then you all benefit from the advertising and your costs are split equally.

Negotiate

A small business owner should try to avoid paying retail prices as much as possible, according to online small business resource Power Home Biz.com. Negotiate with vendors to get a lower price on product, a reduction in shipping costs or any other kind of deal that would lower your buying price. You may be able to offer your vendors something in trade that would help offset some of your materials costs. For example, if you are a delivery company, you may be able to trade one free local delivery a week to an office supply store in exchange for a pre-determined amount of free office supplies.

Teleconference

Rather than pay the high costs of travel and lodging, you should look into using a teleconference system to speak with vendors, customers and business partners. If you would prefer a more visual medium, then look into an Internet video teleconferencing system. Many providers offer teleconferencing services, and it will be considerably cheaper than airfare to go to a personal meeting.

Independent Contractors

The more you can do for your business without having to hire a staff, the more money you save on payroll expenses such as benefits and payroll taxes. Consider utilizing independent contractors for positions, such as Internet webmaster, technical writer or customer service. When you hire independent contractors you do not have to pay for office space, you do not need to supply office equipment and you only pay a flat rate for services rendered.

About the Author

George N. Root III began writing professionally in 1985. His publishing credits include a weekly column in the "Lockport Union Sun and Journal" along with the "Spectrum," the "Niagara Falls Gazette," "Tonawanda News," "Watertown Daily News" and the "Buffalo News." Root has a Bachelor of Arts in English from the State University of New York, Buffalo.