Ways to save money on operational costs?

[teksavyguy]

While channel surfing to see what was on we came across a show called extreme cheapskates which was about people doing crazy things to save money.

So I guess was curious what you guys do to save money with your business operations?

 

[frederick]

I don't know if you consider it an "operational cost", but we do work for a law firm, and in exchange get legal assistance. All our employee handbooks cost me nothing. Our legal retainer fee is waived, etc etc etc.

We also do work for an auto shop, and get discounts there as well. Employees do too. It's a win-win.

You'll have to work out some the finer details with the company that you work with, but basically it's a mutual benefit contract.

 

[YeOldeStonecat]

We're consolidating our cell phone plans .....so far we just paid each employees cell phone bills, each employee often with a different cell phone carrier and plan.

We're bringing in an AT&T fiber internet pipe, to replace our current mixture of 5x static cable IPs and 5x static DSL IPs.

Along with that, AT&T is offering a special business cell phone bundle if we move all our phones to them, will save almost 300 a month.

 

[jdpetrov]

I am 100% mobile and so I don't have to pay for anything specifically for my business. On paper my business has no major operating overhead aside from monthly website hosting. Because I have a dedicated bedroom set up as my office/workstation and because I use my home internet connection and cell phone for my business, I am able to deduct some expenses on my taxes.

For me, "cheap" is simply analyzing every possible business expense with the question of "do I really need this?". My biggest planned upcoming expense for my business is a Vimeo Pro account (YouTube just isn't going to be a viable option for what I've got planned).

When you operate with only what you ABSOLUTELY NEED to operate, it's fairly amazing what you can do without.

 

[redmon]

When you operate with only what you ABSOLUTELY NEED to operate, it's fairly amazing what you can do without.

If an expense can save you time or bring in extra business, it might be better to spend the money. Just a thought

 

[frederick]

If an expense can save you time or bring in extra business, it might be better to spend the money. Just a thought

I agree completely. But I think what he is trying to say is that if you don't have to buy something because the ROI isn't great enough, then why burn the cash. You can't go cheap on everything, and you can't save money on everything.

 

[twincountycomputers]

I am 100% mobile and so I don't have to pay for anything specifically for my business. On paper my business has no major operating overhead aside from monthly website hosting. Because I have a dedicated bedroom set up as my office/workstation and because I use my home internet connection and cell phone for my business, I am able to deduct some expenses on my taxes.

For me, "cheap" is simply analyzing every possible business expense with the question of "do I really need this?". My biggest planned upcoming expense for my business is a Vimeo Pro account (YouTube just isn't going to be a viable option for what I've got planned).

When you operate with only what you ABSOLUTELY NEED to operate, it's fairly amazing what you can do without.

be careful with writing off part of your home as a business expense, I've read that the deduction for that is a red flag and can trigger an IRS audit easier than a lot of other deductions.

 

[SoloCon]

be careful with writing off part of your home as a business expense, I've read that the deduction for that is a red flag and can trigger an IRS audit easier than a lot of other deductions.

this is true. But if done correctly and legal, an audit should not worry anyone. I have been through 3 different audits within the last 10 years. Keep your book keeping intact and claim what you are owed, then there shell be no worries.

 

[teksavyguy]

I agree completely. But I think what he is trying to say is that if you don't have to buy something because the ROI isn't great enough, then why burn the cash. You can't go cheap on everything, and you can't save money on everything.

I agree as well that you can't go cheap on everything when it comes to your business but at the same time I also feel that we as business owners often overpay for stuff and do not look at those costs until money is tight and times are harder. I just think of how many businesses I have seen over the years that buy cheap printers from staples and spend piles of money on ink.

be careful with writing off part of your home as a business expense, I've read that the deduction for that is a red flag and can trigger an IRS audit easier than a lot of other deductions.

Its the same up here in Canada, but some safe ways to avoid that is spending the money on a good accountant as they are worth their weight in gold.

 

[JustInspired]

If an expense can save you time or bring in extra business, it might be better to spend the money. Just a thought

This year has been mostly expense for me. I made sure I invested in good software, tools, anything that will make us more efficient, more capable and more profitable.
I don't understand penny pinchers when it comes to spending to help their business. I have to deal with clients all the time who are trying to cut corners on all their IT stuff and it makes me mad. Cheap printers, PCs, non-existing or crap backup systems. Then they wonder why things go wrong.

Don't get me wrong, I won't throw money away but I don't think twice about buying quality stuff or services when it comes to business.

 

[SAG]

be careful with writing off part of your home as a business expense, I've read that the deduction for that is a red flag and can trigger an IRS audit easier than a lot of other deductions.

That's why not having a good accountant isn't on the list of things this thread is about.

 

[TenYardFight]

be careful with writing off part of your home as a business expense, I've read that the deduction for that is a red flag and can trigger an IRS audit easier than a lot of other deductions.

Yes and when selling your home for a profit, there is a tax implication for yoyr business.

 

[Tony_Scarpelli]

Depends on your size. If you have multiple stores and employees you rebid your workers comp insurance, store insurance, liability insurance and try to negotiate with the landlord to reduce your rents. You beat up on your advertising salesman for a few points.

If you are a one man show then you get a car with minimal payments, that gets 50 mpg that looks nice and put logos on it, print business cards and a cell phone and call it good. Your total investment in tools is less than $200.

I like having a GPS, cell phone, organizer, car charger for same. Then a 1 Tb external drive with my software tools, laptop and jewel tool set for working on notebooks and drives. Nearly every software tool is free. If you cannot work from home then find an accountant or insurance agent with his own office and offer to rent one of his offices with utilities/INTERNET for $100 a month or whatever that area supports. He will likely love to save some money sub-renting an unused office to you.

I probably have a larger investment in my logo design, shirts, graphic on the car, business cards, invoices and thank you cards.

I do not use insurance, phone services, bookkeepers, lawyers, accountants nor anything else. As you grow you will get too busy to do everything so you start to farm out things to give you more time.

While channel surfing to see what was on we came across a show called extreme cheapskates which was about people doing crazy things to save money.

So I guess was curious what you guys do to save money with your business operations?

 

[carrcomp]

Personally, I automate anything that I can.

And obviously outsourcing isn't an option for me, but that's a suggestion I have for others.

 

[allstarit]

i have a virtual server in a data center which saves on having a physical server.

I point my website to the IP of my server which saves on paying to host a website and it runs pretty good.

I don't have a shop so im always mobile. I purchased a cheap VoIP plan and have this running through 3CX on my VPS and this gives me a local number which rings to my mobile 3CX app and also my home phone. This saves me a bit on calls and also gives the presence of a local land-line and not giving clients direct access to my mobile.

i also use screen connect which was a one time purchase which is a really good remote support application which i also run off my VPS.
This can save me on travel costs because im repairing remotely rather then driving to clients for a 5 minute fix. Working remotely can save you time too as you can scope a job prior to going out and your not wasting as much time troubleshooting.