Helpful guide to managing costs
Actively managing expenses may do more to help you maintain ongoing quality than simple cost cutting.
Buy it with barter
Use barter - the exchange of products or services for things of equal value to you and the trader – as a tool to keep your cash flow intact. The benefit: Support cash flow, reduce inventories, increase sales, and make good use of excess capacity.
Go co-op when you can
Join volume purchasing groups. They exist for buying everything from the common supplies you might need to electricity and gas. The benefit: reducing per unit costs.
Shop your services
Manage your costs for services like business insurance, phone, and Internet provider by shopping around every year. The benefit: get the best current and competitive rates.
Buy in bulk
Buy key supplies - pens, paper, printer cartridges - in bulk at warehouse clubs, where you'll receive better prices than at most office supply stores. The benefit: realize the value of supplies that last longer, an office supply budget that is easier to maintain, and a single receipt for tax write-offs.
Use your vendors
Ask for discounts for bulk purchases. Suppliers usually have the same cash flow issues you do. They may be willing to offer discounts for early cash payments but may consider longer payment terms. The benefit: reduce costs and manage cash flow.
Negotiate your rent
Negotiate better terms, whether you're moving into a new space, evaluating a new space, or dealing with a lease renewal. Terms you can negotiate include economic (affecting your cost, such as rent) and business (impacting your operation). The benefit: get the most flexible rate structure to fit your business needs.