PrintManaging cash flow is a challenge for most budding businesses. But all companies, even established firms with steady revenue, need to keep a keen eye on the bottom line. Consider some of the following ways to conserve your cash.
Reduce Equipment and Office Operations Expenses
- Purchase equipment that will grow with your business. For example, instead of purchasing a large, expensive telephone system from the outset, start with a smaller system that can be upgraded as your business grows.
- Consider e-mailing or faxing documents instead of mailing them. This can eliminate trips to the post office and cut down on postage costs. Program your fax machine to send long-distance documents at night or during off-peak hours, and you can save even more money.
- Buy hardware on auction and barter sites. You can get some good deals on new and used equipment on the Web. Just make sure you do your homework, read equipment reviews, and check Consumer Reports Online for product ratings.
- Buy software suites that combine different applications, such as spreadsheets, word processors, and databases. This is usually more cost effective than buying separate applications that might not be compatible.
- Avoid buying office supplies you don't need. Keep an accurate inventory of your supplies, and replenish them only when necessary.
Trim Overhead Costs
- Consider running your small business out of your home. If you can work out of a home office initially, you won't have to lease space and pay rent each month.
- Conserve energy by using energy-efficient products. Shut off all lights, computers, and office equipment at night and on weekends. This will minimize your electric bill.
- Before you purchase business insurance, consult a broker to determine what type and how much you need. Then compare costs. Services such as InsuranceNoodle and others can help you easily evaluate plans and rates.
- Hire an accountant or bookkeeper to help you with your taxes. A tax professional will make sure you're deducting all you can and will keep you up to date on the ever changing tax laws that affect your business.
