Three Steps to Slashing Your Home Business Operating Costs

If you know you need to slash your small business budget, but aren't sure how to begin, here are three steps to help you cut responsibly.

1. Analyze

Begin by making a list of all your expenses--daily, weekly, monthly, yearly. Write them all down on paper so you can see exactly what it costs you to operate.

Don't do this from memory. Get your checkbook out and look through each entry. Don't forget expenses you generally pay with cash or online accounts like PayPal that might not be in your checkbook. Find your taxes and check over the deductions you claimed.

You may find it helpful to categorize your expenses by type such as home office expenses, office supplies, internet expenses, virtual assistance/outsourcing, marketing, etc.

2. Evaluate

Look over your list to see if there are any services or supplies you're no longer using. Eliminate those first.

Is there anything you're signed up for that isn't working out well for you? Is the service or product essential? If not, it might be time to let it go. If it's important, then it's time to look around at your other options.

How about those monthly costs for services or products you really thought you'd have time to work with but haven't yet? If you're not using it now, consider whether it'd be smarter to cancel and then sign up again when you're really ready to utilize the service or product.

Can you reduce your usage (for example, electric or utilities) or reuse/recycle to save?

Are there areas that you can come up with more creative, budget-friendly ways to operate? Never stop marketing, but look closely at what kind of return your getting on your investments and only continue with the ads or strategies that are converting effectively. Look for free or inexpensive marketing ideas to implement.

Can you combine multiple expenses to save money? Instead of both a land line and a cellular phone, will just one work? If you're hosting more than one website, can you move to a host that allows you to put more than one domain/website on the same hosting package? What about a service that allows you to manage more than one mailing list in a single account?

3. Compare

Now that you have your list pared down to the essentials you need, begin comparison shopping to see if there's a better deal.

You may be able to save money without switching service providers by taking advantage of promotional deals your current service providers are offering. Check their websites and call customer service departments to ask what their best deals for loyal customers are.

Remember that the best deal isn't always the lowest price. Don't move an essential business service to a lower cost provider if the quality or customer service won't be there to support you. Make smart choices.

Also consider the time investment in any service changes -- you may need to learn a new system or process, and that might negate the monetary savings.

Bonus Tip: If providers you like offer affiliate programs, sign up and recommend them freely. Your contacts will appreciate knowing where to find reliable services and you may find that just a few referrals can cover your own costs for the service.

Article Source: http://www.wahm-articles.com

And now, let me give you access to some great free resources for small businesses including 101 Free/Cheap Ways to Market Your Business, 119 Things You Can Outsource, and more at www.michelleshaeffer.com

Michelle Shaeffer has been a work at home mom for more than 10 years and loves to share the tips and strategies she's learned to help other home based business owners balance, manage, and market their businesses.

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