1. Pool your purchasing power. Find other small-business owners--not necessarily home based--and team up to buy supplies in bulk. You'll save money on the cost of the materials, as well as the shipping. "I get together with an accountant friend and a computer specialist, and we order basic items like paper in large quantities, usually five or more cases at a time," says Lyn Richards, owner of Dog Logic , a resource center for large- and giant-breed dog owners and breeders in Manchester, New Hampshire. "We get a lower price per ream, and the shipping ends up being free because we buy so much."
Don't limit group-buying partners to noncompeting companies: "Coopetition" (cooperation among competitors) is one of the hot trends in business today. Consider group purchasing with businesses that offer the same or similar services as you but that perhaps target a slightly different market or geographic area. Be sure all agreements are clearly spelled out in writing. Clarify upfront who will actually make the purchase, how the goods will be delivered, when the others will reimburse the purchaser, and how any problems with quality or service are to be handled.
2. Request an energy audit and off-peak usage discount from your utility company. The energy audit is free, and they'll give you plenty of tips to conserve energy and reduce your power bill. For the discount, get a printout of your energy consumption. "Ask for a discount when your peak usage coincides with their low-point usage," Lyn Richards says. "Many power companies will give a 25-cent-per-kilowatt-hour discount when you do this."
3. Promote yourself. Use sound public relations and promotion techniques to gain exposure in your community and in the media that target your prospective customers. This approach is generally more effective and much less expensive than advertising. And always capitalize on one of the cheapest and most effective marketing methods of all: word-of-mouth.
4. Form marketing alliances. Get together with other small businesses that target the same market, and combine your marketing efforts. For example, Steinman's been invited to team with a natural body-care company to exhibit at a large national trade show this fall. "Instead of spending $2,500 for a booth showing just their line, they've selected a few complementary companies to share the booth," she says. "For $400, I'll get exposure in a show I [couldn't otherwise] afford, and they'll offset their costs." You can also team up with other small businesses on advertising and promotional efforts; all it takes is a little creativity and cooperation. As with buying groups, however, make sure you put everything in writing..
5. Operate your vehicle efficiently. Combine trips and avoid unnecessary travel. Maintain your vehicle for maximum gas mileage, which means doing things like keeping tires properly inflated, removing unnecessary weight, keeping filters clean, and getting periodic engine tune-ups.
6. Ask for a better price. When you're shopping for any type of goods or services, always ask for a better price. The worst that can happen is the supplier will say no--but they might say yes.
7. Promote yourself. Use sound public relations and promotion techniques to gain exposure in your community and in the media that target your prospective customers. This approach is generally more effective and much less expensive than advertising. And always capitalize on one of the cheapest and most effective marketing methods of all: word-of-mouth.
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