Subscribe to Blog ContentHave you been using the same telephone and cell phone service and package for several years? Maybe it's time to revisit a new plan or a different company. It could lead to big savings that keeps your business with more cash available.
A colleague with her own small business had a web hosting provider for five years. She saw the web hosting prices dropped dramatically plus the provider's customer service didn't meet expectations. As annoying as it was to move all her files and reinstall some applications, she went from a $30 per month bill to a $15 that included more bandwidth and space. She saved 50%!
Since she had a small site, it wasn't difficult for her to move. She could've asked her previous provider to meet the price of the new one. Since the customer service was not acceptable, she chose to move rather than negotiate. Maybe negotiation is an option for your business.
OK, so it's only $180 per year, but for a small business like hers -- every little change makes a difference. Besides, starting small could be a better route to take. Employees might struggle to think of "big" solutions.
I'm currently reading One Small Step Can Change Your Life: The Kaizen Way. The author discusses asking simple and small questions to employees. Post suggestion boxes everywhere -- that includes the warehouse, manufacturing, wherever your employees are.
The book gave an example how a worker saw the metal shop threw out scrap metal. The worker suggested selling the scrap metal instead. The company implemented the idea and found an easy way to get more cash. This idea came from one small question, "Can you think of a very small step you might take to improve our process or product?"
Does your company print cover sheets every time an employee prints? One company removed the cover sheet functionality and saved paper and printing ink costs. So employees had to work a little harder to find their stuff, but if they made it a habit to get up and go to the printer after printing -- it wasn't a problem.
As you can see from these examples, ways to cut costs doesn't have to be big like layoffs or cutting benefits. Maybe you can find enough small things that add up to big savings. Involving employees also lets them feel empowered to make a difference.
Another option is to barter. Maybe you have products or services you can offer to another business in exchange for a product or service. More on that in the next entry.
All of these are excellent methods of "cutting the fat" without slicing the muscle. The key here is the implementation of a team work mindset. This is the very thing that took the USA through the Great Depression & WWII to become an economic super power. Greed, ego, & laziness have spawned a generation of white & blue collar workers for whom these ancient concepts are new. It's time everyone rediscovered & implement them.
I appreciate you,
Bill Tessore
BillTessore.com
Thank you again Bill. Yes there is always expense fat we can trim and it all helps improve cash flow for our businesses.
I agree, this is a good article.
Thank you Elvis! Glad you liked it.
You are so absolutely right. Synergy in the form of small efforts & a sense of "team spirit" are the building blocks that "good old American know how" were founded on. We all need to embrace them once again.
I appreciate you,
Bill Tessore
Bill: thank you for your comment. It's surprising that is doesn't take that many small efforts to make a significant increase in a business's cash flow stream.
This is really good advice. I had a package deal with AT&T that was good when I got it. But over the years, because of all the discounts I could've had with other companies, that package deal caused me a a great deal.
I've seen error of my ways and have since made some changes.
Good Kim...and you're welcome. We always strive to provide good actionable information for our readers and clients.
Phone contracts and copiers contracts are just one area. If a company owner were to list and prioritize all expense line items, there is a good chance a number of them could be cut.
Hi all ... excellent idea for a post in todays economic climate I think firms will need all the help they can muster from the co workers to help them save a few if not all of their jobs by a few nifty ideas in the cost cutting department ... myself I'm online so all the cost cutting procedures I take on board only benefit me but what I would like to share is beware of cutting costs to end up with a service that does not meet with all your expectations especially hosting services ... I see offers all the time from certain hosting companies and most times I'm tempted to move over to them then I remember the horrific stories I've read online where folks have lost all their data from moving to cheep services that where only designed for the up sell anyways you end up paying more in more ways than money in the end sometimes...
All my best to you and your savings
Phillip Skinner
Thank you Phillip! I am motivated by ROI - return on investment. If a service costs me $100 but I make $150 because of it, then it's worth keeping. This is especially true in the area of marketing. Last year's great marketing strategy, in terms of ROI, may not be doing so well right now.
There is an old saying that what one does not track does not grow.It is also the idea behind conscious living - i.e. being aware the impact we make individually and collectively at home, work and in society. Little questions, little mindshifts, little adjustments great transformational changes. Kudos - Great good provoking article
Andreas Guibeb's last blog post... Topranked Wellness: Tuning Our Sleep in the Key of Life
My sentiments exactly Andreas. Thank you for bringing up the subject of testing. You don't know what works or what doesn't work, if you don't test and measure. Everything we do should be measured and tested. If we don't, soon all the cash flow will be eaten up. What do we do then?
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