Does your startup have money to burn? If so, you can skip this article.
But read on if you want real advice on business cost reduction - avoid wasting precious dollars on little things like express deliveries, office supplies, service contracts, travel, phone and internet services. Plugging slow leaks in your bottom line caused by overspending on the small stuff can put more profits in your pocket.
No matter what size your business, or what the economic climate, one of the best ways to make money is by saving it and reducing costs. Keen competition and paper-thin profit margins have made running lean a necessity for most startups, and developing smart buying habits from the beginning can be just as crucial to profits as savvy selling.
Entrepreneurs often overspend on routine items because they’re too busy to take notice. But it all adds up…even the small stuff. Cash you save on needless expenses goes right to your profit column. When it comes to cutting costs, common sense rules. Like successful dieting, a successful approach to saving money uses small, sustainable steps to achieving a flatter company tummy.
Service contracts are a good example. We buy them for their perceived safety net and the fuzzy feeling they offer. But as good as some service contracts may be, left unchecked they can bleed precious cash.
Steve Sonet, a partner in the New York law firm Levy, Sonet & Siegel, felt that his firm was wasting money and sought help from cost management consult...
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