‘It takes money to make money’ is an expression you are probably familiar with. I’ve come up with its companion adage: It takes time to save money.
I’ll bet (though gambling is not one of my suggestions for boosting your bottom line) during the busy season you barely have time to keep up with bill paying. You probably don’t spend a lot of time in June thoughtfully analyzing your costs for supplies and services. As we head into winter however, and the moneymaking jobs take up less of your time, spend some of those unclaimed minutes researching ways to save money. Your bottom line will reap the rewards for months and years to come.
Here are places to look for savings in your company books. Some money-saving changes take a little time and others take a lot of time, but when you add it up, it should all be time well-spent.
MONEY IN THE BANK
1. Comb through a few months’ worth of bank statements. Look for penalties and fees. If there are a lot, maybe you’ve got the wrong type of account. I recently learned I was being charged a monthly fee so I could access an account online, but it was an account I never had a need to access online.
2. Arrange for a sweep account at the bank. This means if a non-interest-bearing checking account rises above an amount you specify, the extra money is “swept” into an interest-bearing account. Despite the low interest rates banks are paying, it’s a painless way to grow a little cushion of savings.
TAKE CHARGE OF UTILITIES
3. Call your phone service provider to review your account and ask if there are ways to reduce your bill. You may be paying for features you don’t use. Often, phone companies want to keep loyal customers and will find ways to reduce charges, but you have to ask. This goes for cellphone and Internet providers too.
4. Consider if it’s still worth paying for an 800 number. Most people have cellphone plans with unlimited long distance calling and don’t need a toll-free option.
5. Many utilities conduct free energy audits and will suggest ways for business customers to reduce their electric bills. Find out if your utility does this and schedule an audit if they do.
6. Ask your utility if you could save money by signing up for a peak usage rate, which means you pay more when overall demand for electricity is heavy and less when demand is not at peak. You might also benefit from a load control program. This means in exchange for monthly savings on your electric bill, the utility has the option of curtailing your power consumption for brief periods during peak consumption times. This works best for businesses with backup generators.
SHOP AROUND FOR INSURANCE
7. Review all your insurance coverage with your agent, and get a few quotes from competing companies.
CREDIT CARD SAVINGS
8. If you are not being rewarded for credit card purchases, research cards and apply for one that gives you cash back.
9. If your business accepts credit cards, shop around for cheaper credit card processing fees.
INCREASE EFFICIENCY
10. Schedule a tune up of your heating and cooling system. This may cut your utility bills and prolong the life of your furnace and AC system, saving money in the long run.
11. Install low-flow toilets and faucets to save money on water. Also, if your utility doesn’t offer energy audits, do what you can on your own like changing all incandescent lightbulbs to energy-efficient compact fluorescent bulbs.
12. Replace your thermostat with one that automatically sets back the temperature when no one is in the building.
GO HIGH TECH
13. Consider your Yellow Pages ad. If most customers are finding you online, decrease the size of your print ad to the smallest, least-expensive ad possible. But make sure all online listings are accurate and up to date.
14. Consider switching any paid classified advertising you do to free online classifieds like Craigslist.
15. Clean up your mailing list to reduce the amount you spend on postage. At the same time, consider if more of your mailings could be done via email. This will also cut printing costs.
16. Explore software that’s available free online. The amount of useful free software has grown so much in recent years PC Magazine has gone from publishing an annual list of the best free software to a monthly list.
DON’T BE AFRAID TO ASK
17. Contact suppliers and ask if they offer a discount for early payment or bulk purchases.
18. If you own your building, go to city hall and check assessments of comparable nearby properties. If you conclude your property taxes are too high in comparison, contest your valuation.
19. Look for free printable forms online rather than buying forms at an office supply store or from a printer.
20. Look over all recent bills for errors.
SHARE YOUR TIPS
Now that I’ve got you thinking of ways to save money, I’ll bet (there I go gambling again) you’ll come up with more. Please take the time to share with other PROs by sending your money-saving tips to: judy@the-wordhouse.com.
