09/ 26/ 2007
by Megan Goodchild
Five easy ways to save money in your business
As Patti Dowse's staff grew from two to 13 employees, the cost to outsource her payroll swelled by 500 percent. So her decision to bring it in-house was a no-brainer--especially since one of her employees had experience as a bookkeeper. And as an added bonus, "We had more control," says Dowse, owner of Erda Leather, a Cambridge, Maine-based company specializing in handmade leather bags.
If you're running your small business on a tight budget, or just looking for a way to cut costs, these easy-to-implement ideas could make a big difference to your bottom line:
1. Make your office energy efficient. "Our building is 11,000 square feet and would be a nightmare to air-condition," Dowse says. Instead, Erda uses a large attic fan and opens windows to keep air moving through the warehouse.
Other easy-to-implement energy-saving methods include installing a smart thermostat to heat or cool your business only when you need to; replacing incandescent lightbulbs with compact florescent lights, which can save you approximately $30 or more on energy costs per bulb, according to the federal government's Energy Star program; or using laptops, which are more energy efficient than desktops. And, of course, always turn off equipment when it's not in use.
2. Scale back your travel costs. There's no need to sacrifice comfort when traveling on a budget these days. Most moderately priced hotels offer all of the amenities a business traveler needs and are more likely to offer freebies than their more expensive counterparts. Chains like Holiday Inn Express, Best Western and many of the Marriott brands offer a complimentary breakfast and free high-speed Internet access in guest rooms--which is wireless in many locations.
When flying, stick to coach and check out multiple airlines before booking your flight. Southwest Airlines frequently offers deeply discounted flights around the country, as long as you purchase your ticket at least 14 days in advance.
And consider booking travel yourself. While travel agents are helpful, you can often score plenty of deals yourself as long as you know where to look.
3. Hire interns. College interns can be great assets to your business, since they are eager to get valuable experience in their field of study--paid or not. Putting in a summer's work at your business can be a big resume booster for them--and a money-saving move for you. While interns must receive something in return for their work, a stipend or academic credit is often acceptable. But be careful what tasks you give them--you can't just use them to make coffee and photocopies. Check out the Fair Labor Standards Act before you set up an internship program to make sure you abide by the rules.
4. Cut back on outsourcing. If handling payroll processing yourself isn't feasible, find other tasks you can bring in-house. Consider eliminating services like couriers, travel agents and office cleaning or landscaping crews if you and your employees can tackle the jobs.
5. Open your books to employees. "We share our complete financial situation with our staff so they can see the effects of both their labor and their cost-saving activities," says Dowse, who rewards hard-working employees with incentives such as bonuses, paid time off or a visit from a massage therapist when the company's finances are in the black.
