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!

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