Operating a home-based business can be one of the best decisions you will ever make. When starting a home business it is important to budget your time and money wisely. While a home business can be quite profitable, the money will not start rolling in over night and you will want to keep your expenses down until you start making sales.
Here are some ways to help you reduce your business expenses:
Keep accurate records of your expenses and review them at least once a month. Seeing what you spend in black and white can give you a good idea of where you can cut back.
Consider joining an alliance for small and home-based businesses. You will be able to get discounts on everything from office supplies to health insurance.
In purchasing office machines, buy multi-purpose equipment such as a printer/copier/fax in one. Make sure you take any discounts offered by suppliers such as a small discount when you pay your invoice within 10 days, etc.
Remember that you may be entitled to certain tax deductions on your home and vehicle when you operate a home business.
Make sure you turn off non-essential office equipment when not in use to save on electricity costs. You may want to consider free internet service, free web hosting, and any means of free advertising that may be available to you.
When you must print a document, print on both sides of the paper (called duplexing). This will cut paper costs by 50%
Emailing well wishes and letters will save you money. If you know Uncle Bob uses a computer often, why pay $3.00 or more for a card and a stamp when you can send him a birthday ecard for free? As they always say… “It’s the thought that counts”.
Instead of purchasing a print copy of your favorite newspaper or magazine, read it online. You’ll find that a lot of companies offer a condensed version on their website for free.
Reduce junk faxes by switching to a fax modem or online service. You can send and receive faxes on your computer and view them on your computer. Delete the junk ones and for those worth saving, do it electronically. Remember if you have to print out a fax, skip the coversheet if at all possible.
Never buy scratch/doodle pads, instead, flip used paper, one sided junk mail and envelopes over and use them for notes. Cut it into 4″x 6″ strips, staple or use rubber cement to bind them together and make scratch paper for your desk, use it to take phone messages for family members or let your children draw pictures on it.
Use paper from your shredder for packing items before mailing, eliminating the need to purchase “packing peanuts”.
Buy in bulk! Anything that is nonperishable and you may need a lot of (paper, pencils, etc) you can usually find in bulk. The initial cost is a little more but it will save you time and money in the end.
Reducing your expenses when operating a business from your home is not only smart but often times necessary to turn a profit. By making small changes in your business operations, you will see an increase in your profits.