business expenses?

Question

what's the best way for small businesses to save money?

Answer 1

Keep costs down. Do as much as you can your self (try not to employee others if possable). If you must employee others then you want part time (no benefits, flexible), you also should look a services (secretarial, cleaning, etc.). You should also think about contract labor (they pay all taxes - they must be able to work for others, etc.), find out what your state has as the list of what is required for contract labor (talk with small business assoc.).

Answer 2

Develop a business budget that is separate from your personal budget. Use at least three fundamental categories:
1)Personal revenue, what you pay yourself
2) Business revenue, what you pay your business
3. Contingency revenue, what you put aside to pay for issues you couldn't anticipate.
Allocate a percentage of every business dollar to these three categories. I use 50%, 40% and 10% respectively.
Be sure to ask and answer the following questions:
1. How much money to I want to earn annually during my first 10 years in business?
2. How many hours per year will I invest to earn that gross revenue? Note: The answer establishes your hourly rate.
3. What need is there in the marketplace that I can meet better than it's being met now for which people will pay me this hourly rate?
4. How much am I willing to pay for a dollar? Note: The answler establishes your "cost ceiling--the maximum amount you're wiling to pay to earn a dollar.
Let's see how this works.
Let's say to provide a service or product at earn $1,000. Using my percentages, I pay myself $500. I pay my business $400 and I pay contingency $100. My expenses--the cost of earning this $100--must be just $300 or less. Therefore, when I pay the business $400, I'm replacing the expenses money, and growing my expenses account by $100.
The next thing I suggest, particularly if you are computer saavy. Become an affiliate of all online merchants that sell the business supplies you need. Buy all of your supplies online. First, you will save 12-15% in retail costs, and because you off your website, the company pays at average of 7-10% commission, increasing your supplies costs savings to an average of 19-25% of what you would pay otherwise.
Try this! It's works1

Answer 3

Don't spend it. Some business owners "think" that just because they can expense something, that it is free. In business it is all a game. You can either finance through debt or equity. If you need more cash on hand, use credit cards or loans to make your business purchases. My husband started his business from one lawn mower at age 12, earned enough to buy another and only used the money he made, to finance his next purchases. This is called financing with equity. Not everyone has that luck, to start when they are so small. He would get things for free, when he could, or look for cheep deals, at the begining. He is now 5 years out of college and runs the business out of our basement, with 10 employees. Be frugal, only what you really can afford or need at your level of growth. At the begining yoiu do need more to get established, but being an accountant, I've seen many businesses fail because they spent more than they had. One business in peticular spent all this money on advertising and making the building that the leased look nice, that they ended up failing after one year, they couldn't even pay their taxes or employees. My father is the same way, he owns a restaurant, and it is very simple, but people like his food, so no one cares that he hasn't updated things like decor, in a while. Do what you think is right for you. I also like to buy Certificate of Deposits from the bank, they are full proof, and force you not to spend you money for while. Look into it at the bank.

Answer 4

We own a small painting and drywall business. We keep our office at home and I answer the phones, do our taxes with Taxcut, and type fax and print the invoices, while he runs painting and drywall part. We have a storage for the supplys we need and do everything else from home. We subcontract the labor instead of hiring by the hour, so we don't have to pay insurance and social security for them. We buy mostly from one paint company because the more we buy from them the better discount we get. We ask for contractors prices. Now that our children are old enough they help out too. We only advertise in the phone book and Chamber of Commerce. The rest is a waste.
I hope that helps. Good Luck

Answer 5

You could save money by not hiring a lot of people. When you're buying supplies from other companys for your business make sure you have the lowest price but make sure the merchandise is good. Do some decorating, but not a lot, just to make it look nice.

Answer 6

First, on the back end, keep track and you may be able to write many perhaps all the expenses off (tax purposes). Second, some overhead expenses you can minimize buy sharing office space, ie. executive offices, business cards you can order on-line for shipping costs only $8-$20 depending on how many. Be smart. Your biggest asset is yourself.

Answer 7

Your question is open enough. Clairty in what you intend is another-

if you mean "build wealth" then restate the question.

SAVE MONEY?

-examine how you earn income then examine the process and improve each subprocess for improvements/cost reductions

-review you expenditures then examine how they relate to producing income or supporting income. Then prioritize and modify your spending.

-You can discuss pros and cons of buying new/used, outsourcing or PT vs FT staff


All this and more gets back to the real question- do you mean build wealth or add profitiability to the business at hand?

Answer 8

invest it wisely and don't spend anymore than you have to for the start. unless it deals with marketing the product that is the name of the game is marketing. flyers, brochure, public gatherings, if you feel comfortable sample it out to intrested people, give a lil get alot back, dont be money hungry it will take time.

Answer 9

there are many ways, 1. Buy stationery in bulk, 2. reduce phone calls, 3.recycle papers, 4.open an investment acct. 5 get a partner to invest with you,

Answer 10

find somebody who will trust you, and have them invest in your business. or u could allways start an account or something, u could even take a loan from the bank.