Aug 21 2007
How To Reduce Your Expenses When Operating A Home Business
Operating a home-based business can be one of the best decisions you will ever make. When starting a home business it is important to budget your time and money wisely. While a home business can be quite profitable, the money will not start rolling in over night and you will want to keep your expenses down until you sales start coming in.
Here are some ways to help you reduce your business expenses:
Keep accurate records of your expenses and review them at least once a month. Seeing what you spend in black and white can give you a good idea of where you can cut back.
Consider joining an alliance for small and home-based businesses. You will be able to get discounts on everything from office supplies to health insurance.
In purchasing office machines, buy multi-purpose equipment such as a printer/copier/fax in one. Make sure you take any discounts offered by suppliers such as a small discount when you pay your invoice within 10 days.
Remember that you may be entitled to certain tax deductions on your home and vehicle when you operate a home business.
Make sure you turn off non-essential office equipment when not in use to save on electricity costs. Take advantage of free advertising by submitting press releases and articles to local papers and online sites. Add your website to online directories and participate on networking forums.
When you must print a document, print on both sides of the paper (called duplexing). This will cut paper costs by 50%.
Emailing well wishes and letters will save you money. If you know Uncle Bob uses a computer often, why pay $3.00 or more for a card and a stamp when you can send him a free birthday ecard? As they always say… “It’s the thought that counts”.
Instead of purchasing a print copy of your favorite newspaper or magazine, read it online. You’ll find that many companies offer a free condensed version on their website.
Reduce junk faxes by switching to an online service. You can send and receive faxes from your computer and delete the junk ones before printing. If you have to print a fax, skip the coversheet when possible.
Never buy scratch/doodle pads. Instead, use one-sided junk mail, envelopes and other papers for notes. Cut them into 4″x 6″ strips, staple or use rubber cement to bind them together with the blank side up. Use them to take phone messages, jot down notes or let your children draw pictures on them.
Use paper from your shredder for packing items before mailing, eliminating the need to purchase packing peanuts.
Buy in bulk! Anything that is nonperishable that you use a lot of such as paper and pencils, you can usually find in bulk. The initial cost is a little more but it will save you time and money in the end.
Reducing your expenses when operating a business from your home is not only smart but is often necessary to turn a profit. By making small changes in your business operations, you will see an increase in your profits.
Melody Spier, owner of Essential Office Support offers virtual support services to small and home-based business owners. You do the tasks that you do best and let a Virtual Assistant do the rest! http://www.EssentialOfficeSupport.com
