A home-based business sure has low overhead costs, but that in no way means you can turn a blind eye to the expenses. After all, the money you save will only mean increased profits!
If you are planning to start a home business or are already running one, you’ve come to the right place. Here are 7 tips that will help you save money significantly.
When buying furniture, consider going for recycled or second-hand instead of brand new to save money. Check websites, garage and bankruptcy sales, and newspaper ads for good pieces at discounted prices. You can also get in touch with local schools and colleges and enquire if they have furniture that needs to be disposed.
Buying used electronic items is fine as long as you’re certain that whatever you’re buying is worth the price. If you buy a used computer at a very low price and have to spend on repairs soon after, you’ll be at a loss! Stick to buying brand new whenever you’re unsure of the quality or the longevity of items you intend to purchase.
When buying office supplies, ask for the wholesale price first and buy in bulk whenever possible. If you don’t have the storage space, commit to buying a certain quantity of a product over a definite period of time and ask the retailer if they can charge a bulk rate.
When buying goods or services, don’t settle for the first price you’re told right away. Ask for a better price politely and also brush up on your negotiation skills. Keep in mind that paying by cash or in a mode that the supplier prefers can earn you extra discounts!
Before purchasing individual products, research prices online and scout different stores to find the best deals. Use coupons where possible and frequent websites that offer freebies or discounts on office supplies.
Pay Bills on Time
Delaying payment can cost you dearly so always be sure to pay your bills on time. Consider paying your bills online- you’ll save on postage this way and you might also be entitled to some discount.
Note that letting money sit in your account for as long as possible will earn you interest. So refrain from paying your bills too early unless you’re getting a discount for doing so.
Going paperless means no investing in a fax machine, a printer, and a scanner. What’s more, it also translates to less clutter and eliminates the need for having obtrusive filing cabinets around your home office!
Don’t worry about getting things done without these devices; you can easily replace a fax machine by sending e-mails or opting for Internet faxing, and a scanner and printer by getting documents printed out at a printing shop.
Or Be Printer-Smart
If your work requires you to print out several documents on a regular basis, investing in a scanner-printer combo will be beneficial. Doing so will also help reduce clutter by converting incoming paper documents to electronic data.
If you do buy a printer, use a font type and color that helps you save money by getting the most out of ink cartridges. Printing on both sides of a paper will help reduce paper costs too. Additionally, remember that printer ink is pretty expensive, so try to buy in bulk or go for recycled cartridges to reduce costs.
Barter Goods and Services
You won’t be able to do everything related to your business by yourself- you’ll either have to employ someone or outsource services online. Instead of paying someone to take care of your accounts or for services like payroll processing, get in touch with a business that can do these things for you in return for your services.
Depending on your needs and that of other businesses, you can also get goods in return for services or vice versa. Just be specific about the details and be mindful of the value of goods or services you trade. You don’t want to get less in return for more!
Further, bear in mind that the value of goods and/or services you barter may be taxable.
Cut Utility Bills
Utility bills can burn a hole in your wallet, so use these tips to cut them significantly:
- Use energy-efficient appliances and always turn of lights and devices when not in use. Do away with excessive lighting and replace outdated lighting fixtures with LEDs or CFLs.
- Get your HVAC equipment and systems serviced regularly. Clean or change filters every month to improve efficiency and get leaks in air ducts, piping, or coils repaired immediately.
- Use laptops instead of personal computers to save energy. Make sure that laptops or computers are allowed to go into power save mode. To keep viruses at bay, install antivirus software on all computers and keep the software updated.
- Get an energy audit done by your utility company so you know what’s best for your home office. Don’t forget to ask for a discount when your peak usage coincides with the company’s low-point usage.
A home-based business can not only supplement your income, it can also be your primary source of income. However, the expenses of running your business can eat away at your profits.
With the tips given here, you now know what you need to do to slash expenses. So quit worrying and do the right things for your home business!