Welcome,

 In this week’s newsletter, we will look at going back to the basics.  As opposed to the very sophisticated ways of saving money, let’s get back to the basics and save money quickly.
Sincerely,

Paul Hernandez-Cuebas
Editor


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December 27, 2005
Volume 1 Issue 42

Simple ways to save Money

There are 2 basic ways to make more money, increase revenue or decrease costs.  Decreasing costs is always the faster method and has a more lasting effect. 

In our constant review to saving you money, we have found “Money saving tips for the small business owner” by Steve Ma. Renya, a writer at www.powerhomebiz.com.  We think these basic tips need to be refreshed for all of us.

 

  • Spend when only absolutely necessary: Make that buying decision when you really have to, unless you can get a quick productive return on your money.

 

  • Negotiate everything: Just ask. You would be surprised on what you can get.  Be careful not to cut too thin on service negotiations, you might be paying more in the long run because there is no money in the deal for the service provider.

 

  • Buy used or reconditioned: Get on the web and go to E-bay or other trading sites. Bankruptcy sales are a great way to get substantial savings.  Also, leasing companies can have equipment going off lease that they want to quickly liquidate; they also have access to equipment that has been repossessed.

 

  • The virtue of comparison shopping: The internet is a great vehicle to price compare.  It has really leveled the playing field for buyers. Also, those existing vendors you have a long history with might be more willing to cut their prices if you approach them in an “I need your help” way.

 

  • Leasing: It’s all about cash flow.  The monthly nut, can you break it?  If it returns more monthly than you spend, it is probably a good decision to lease.  Guys get too hung up on multiplying the monthly payments by the term and back off.  If we did that with our home mortgage very few of us would own the homes we do. What makes your business different?

 

  • Keep a close eye on energy consumption: We have reviewed this many times in the past.  Not just coolers and freezers, but office heat and ANY energy consumer.

 

  • Try bartering: This was really popular in the 80’s, but somehow fell out of favor.  Be creative.  Maybe your accountant needs food for a social function.  Maybe your truck is needed to move someone over the weekend that does web design for you. Bartering is a tax saver also.

 

CUTTING COSTS CAN BE KEPT SIMPLE

 

 

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