Lowering Overhead for Small Business Part 1

Starting your own business can be exhilarating as well as overwhelming. When you finally take the plunge and decide to start your business, the financial aspect can be very discouraging. I will try to lay out a plan and give some tips on starting your business for less cash in this series of the blog. If your begin your venture with cost reduction in mind, it can only set you up for an easier ride.
I would like to start by saying the lowest price isn't always the best. Do not sacrifice quality for cost. Then there are items that you shouldn't pay an arm and a leg for. For instance, business cards. Business cards have been a staple in our society for decades. You print 500 of them and they may last two years! What happens when you need to change the information on them. You throw the remainder out and buy more. Don't be afraid to keep your cards simple. As a matter of fact, if you have a decent color printer, print them yourself using Microsoft Publisher or like software. Some things that you can't go cheap on, your website and your marketing. These items are what bring customers to you. It takes money to make money. We will go into marketing and the website later.
In this series I will talk about start up costs from rent and utilities to logo design and your website. We will then move to literature and marketing material, then to equipment (ie computers, phone systems, accounting systems and employees) and finally how to keep track of it all to make sure your overhead costs don't get out of control.
If you have any direct questions, contact me through my website, www.deanpurchasingandacquisition.com or post a comment here. I look forward to the next couple of months discussing these very important topics. Thanks!

Vendors are your Greatest Asset

As discussed in the Annual Contracts blog, talking to your vendors and getting them actively involved in your project or business can save a lot of time and money. When you have a new concept or project that entails new strategies or components, you may want to ask your vendors for a little help. You should schedule time in your project management timeline for your vendors. Why? Mainly because your vendor may work with a hundred other companies and has seen what they do or how they do it. It can be presentations, to full scale marketing campaigns. You vendors will know how to save money on the project as well.
When a vendor gets involved, they get invested. They feel a part of your business and want you to succeed so you will keep coming back. Building this relationship is also building trust. Call your vendors to see how they are doing. Don't talk about business, just see how they are. This helps when any problems arise such as print errors or delivery time issues. You know that you can talk candidly and cut the BS.
But, don't forget that you are running and business and getting 3 bids is an absolute unless you have an annual contract on the item already. Your vendors know that you bid other companies and understand. Any Questions? Please feel free to comment!

Thanks! -Pete

Annual Contracts

In this tough economy and sales steadily decreasing across the board, one of the best ways to gain some profit margin is to lower your overhead. It may take looking at many small items such as business cards, brochure printing, office supplies and equipment service plans. Through the use of this blog, I will give what I think is a good cost reduction strategy or tip for these topics. I would like your input on what costs you think you pay too much for, but need on a daily basis.

One thing that you may want to review is your everyday use items and talk to the vendor about an annual contract. One of the best ways is to meet with your vendors or potential vendors and develop a relationship. Discuss their business and your business. It always helps if your vendor knows where you want to go. Annual contracts help you lower the cost of the items, but it helps the vendor to know that they will have your business for the next year.

Don't be afraid of asking your vendors questions or advice. They should be vested in you and your business. Once the contracts are done and signed, keep them involved and resolve any problems that arise. Post a comment if you have any questions. Thanks!

Pete

Welcome.

Welcome to the blog. This is actually something you can get for free! I decided to start this blog do to the countless number of phone calls from small business owners that just need a little advice. Well we strive that "we are a small business working for small business", so I thought this was a great way to share the questions and advice with everyone. Feel free to add any comments or tell us what worked for you and your business. Of course, you can always check out our website: www.deanpurchasingandacquisition.com. Thanks all, and I look forward to the new relationships we will develope here.

Pete Dean
CEO