NFIB

Cost Saving Measures for Tough Times
06/ 03/ 2003

by Vicki Gerson

In today's economic climate, the little things count. Staying vigilant about keeping costs down will help you survive the lean times. Here are some places to start.

Don't purchase or lease a new vehicle. When times are tough, purchase a pre-owned certified car. If the cost of a pre-owned certified car is still too expensive, look for an older car and have a mechanic check it over.

Determine if the employees who have company mobile phones really need them. If you don't think they do, discontinue service at the end of the contract.

Before you ship a product, compare the cost of sending it by bus, train, airplane, independent truck or your own transportation. The cost will differ depending upon the size and quantity and weight of the product.

Don't donate to every charity that asks for a donation. Establish a list of where you will donate and determine how much you'll give. If you have a product to donate, give that instead of giving cash.

Recycle anything you can from printer paper to envelopes. Make sure you don't throw out little things such as paper clips and rubber bands.

Try to send emails instead of making long-distance calls. When you send a package, allow yourself enough time so that you can avoid using an expensive courier service or paying high costs to overnight it.

Look at your advertising carefully. Are your ads paying off for you? Keep track of where your customers heard about you. If an ad in a particular newspaper isn't working, don't advertise there.

If your business is doing badly, it may seem like these efforts are too small to make much of a difference. Business owners who fear bankruptcy or having to sell their business may feel overwhelmed with depression and feelings of hopelessness. If you are worried about the future of your business, sit down with your lawyer, banker and CPA to determine what you can do. Your business will have a much better chance of sticking around for the next economic rebound if you take a proactive approach now.

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