On
a shoestring budget (and what entrepreneur isn't?), it really pays to scrimp
and save. Just in case you've forgotten the value of a hard-earned penny,
we've come up with a slew of money-saving ideas to boost your business's
bottom line—from cutting your legal bills to inexpensive ways to draw in
customers. Though some tips will save you more money than others, the end
result of your overall spendthrift strategy could add up to a bundle.
Penny-Pinching
Promotions
1.
Piggyback your advertising. Including advertising material in other
mailings, such as in invoices, saves postage and other costs, says J. Donald
Weinrauch, co-author of The Frugal Marketer. Likewise, make the most
of your point-of-purchase opportunities by tucking coupons, newsletters or
other promotional fliers in the bag with customers' purchases.
2.
Be a good neighbor. Split advertising and promotion costs with
neighboring businesses. Jointly promote a sidewalk sale, or take your
marketing alliance further by sharing mailing lists, distribution channels
and suppliers with businesses that sell complementary goods or services.
3.
Ask the people you know for help. The kind of support you'd most like to
get from your contacts is referrals—the names of specific individuals who
need your products and services. So go ahead and ask! Your contacts can also
give prospects your name and number. As the number of referrals you receive
increases, so does your potential for increasing the percentage of your
business generated through referrals.
4.
Got a happy customer? By telling others what they've gained from using
your products or services in presentations or informal conversations, your
sources can encourage others to use your products or services.
5.
Make a special TV appearance. Local cable TV stations often have very
reasonable advertising rates at time slots throughout the day and night.
Though you won't necessarily reach prime-time viewers, you will make an
impression where it counts—in the comfort of potential customers' homes.
6.
Offer expert advice. Teaching a class, speaking at a community meeting,
or writing an article for a local paper not only makes you look like an
expert but garners low-cost attention for your business.
Internet
Ideas
7.
Start your search engines. Research your market and find potential
visitors for your Web site by looking through Usenet newsgroups (forums on
the Internet where people post messages for public viewing) and
special-interest groups related to your target market, product or service.
Or, if you have America Online, visit their Small Business Center, which
includes libraries of small-business information you can download at no
charge.
8.
Cut costs when setting up your online store. Think going online has to
cost an arm and a leg? You can start out by selling items for next to
nothing on online auction sites like eBay and Yahoo! Auctions. If you want
to create a professional storefront, there are several "Web site in a
box" solutions available, usually for a low monthly fee.
9.
Start chatting. Find newsgroups that cater to your audience, and join
the fray. "I didn't start [participating in online discussion groups]
to generate business, but as a way to find information for myself on various
subjects," says Shel Horowitz, owner of Northampton,
Massachusetts-based Accurate Writing & More and author of several
marketing books, including Grassroots Marketing. "But it turned out to
be the single best marketing tool I use. It costs only my time. [One] list
alone has gotten me around 60 clients in the past five years." Always
include your URL in your signature, but don't do any hard selling—most
groups will ban you immediately. Instead, provide useful information that'll
make people will want to click on your site.
10.
Spread the word yourself. Are you letting people know what your URL is?
Try putting it on your letterhead and business cards and in e-mail
signatures—wherever potential visitors are likely to see it. Include it on
employee uniforms, any promotional items you give away, all press releases,
in your Yellow Pages ad and on company vehicles.
Location
Logic
11.
Get a suite deal. You don't have to run your office full-time from an
executive suite to benefit from its services. Many homebased entrepreneurs
find executive suites meet a range of needs, including access to a private
mailbox and a receptionist to answer or forward calls to your home office.
Visit the Office Business Center Association International Web site for more
information.
12.
Be mobile. While the costs of establishing a permanent retail location
can be steep—you may spend up to $100,000 or more, with leases spanning
three to 10 years—carts, kiosks and temporary spaces can be an easier way
to get a foot in the door with a lot less risk. The upfront investment for a
kiosk or a cart ranges from just $2,000 to $10,000, according to Patricia
Norins, publisher of Specialty Retail Report. License agreements for
carts and kiosks are shorter and are usually renewed every month up to one
year depending on the location. This arrangement makes it easy for
entrepreneurs to "come in, try it out for a month, and if their product
isn't working, shift to a new product line or close up shop and move to a
new location," Norins says.
Office
Overhead
13.
Buy recycled printer cartridges. Check the Internet or your Yellow Pages
for a local recycled printer cartridge supplier.
14.
Fill it out for free. Instead of buying forms at your local office
supply store or spending time creating them yourself, you can find tons of
free forms online that you can download, customize and print.
15.
Get free software. Visit Download.com
to try hundreds of software products for free through trial downloads,
freeware and limited versions of the full product. Another tip: If you
haven't found what you're looking for through Download.com, check out the
manufacturer's site. Most offer free trial downloads.
16.
Buy used equipment. Save up to 60 percent by buying used computer
equipment, copiers and office furniture from stores such as the nationwide
Aaron Rents & Sells chain. Auctions and newspaper classifieds are other
good sources of used equipment.
Insurance
Intelligence
17.
Save by association. When looking for insurance, check with your trade
association. Many associations offer competitive group insurance.
18.
Be prepared. Consider what situations would be catastrophic to
your business and protect yourself with adequate insurance.
19.
Make a foul-weather friend. By arranging for an alternative place to run
your business in case of a major disaster, you may be able to save on
business interruption insurance, advises the Insurance Information
Institute. For instance, you could arrange with a firm in the same industry
to use their facilities in case of damage, and vice versa.
20.
Check up on your medical insurance. Before choosing a medical insurance
carrier, ask for information on past claims and the loss ratio of paid
claims to premiums, advises the Council of Better Business Bureaus in
Arlington, Virginia.
