Saturday, May 12, 2012

16 Ways Small Businesses Can Save Money

When considering whether or not to pursue a career as an entrepreneur, you must consider choosing getting a steady paycheck versus starting your own company with possibly no salary or medical benefits that can be costly.

If you are considering becoming an entrepreneur save enough money to cover your living expenses for at least 12 months to carry you while your business is growing.

Some advantages of being an entrepreneur are:  flexibility, creativity, full ownership and being your own boss. Some disadvantages of being an entrepreneur are:  losing a steady paycheck, losing medical benefits, falling in a different tax structure, increased stress and you can’t blame anyone else if you make a bad decision.

Working as a small business owner requires long hours, dedication, persistence, patience and sacrifice. Research conducted by the Forum of Private Business (FPB) stated that 82% of business owners have seen an increase in the cost of raw materials since last year.  

In addition, 74% reported that increases have inhibited their growth expectations and 45% stated that their profitability has been impacted.  Running your own business has many expenses that are not considered when working for someone else.  Here are 16 ways to save money running your small business.

  1. Start at Home. Start your business in your home.  Once you have generated a steady profit for at least a year or more then you can consider leasing office space.
  2. Sales. Hire virtual assistants, sales or marketing entrepreneurs just starting out or break down large projects into smaller tasks and save money by hiring a resource for each task.
  3. Barter. Barter services by visiting the site for listings by state.
  4. Shop around. Comparison shop to find the best deal on goods and services.
  5. Buy used. Visit used-furniture stores, Craigslist or eBay to find used furniture, furnishing and office equipment.
  6. Link with Others. Include your advertising materials in mailings, promotional advertising for events, gift bags, coupon mailers or newsletters to save money on advertising.
  7. Joint Ventures. Share advertising and promotional costs with nearby businesses.
  8. Ask for help. Ask existing customers for referrals and offer a referral fee.
  9. Local Ads. Purchase ads on local cable television, radio stations or newspapers.
  10. Paid Events. Give a seminar, workshop or class at a local college to generate additional income.
  11. Offer Online. Offer your products online using sites like MSN, Yahoo, eBay, Craigslist, social media or shopping product sites like PayPal or We Pay to sell products and services.
  12. Promote Yourself. Pass out your business cards to everyone you meet to promote your business.
  13. Buy recycled. Buy recycled printer or copier paper, pencils, printer or fax ink and florescent light bulbs to save money.
  14. Insurance. Buy adequate insurance to protect your business from losses and potential legal action.

  15. Get free help. Hire interns at to assist with tasks and in exchange give college credit.
  16. Hire your kids. Hire your kids who have to be at least 14 years old and have them pay their own taxes.

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