After numerous bank closings and watching the Fed cut rates down to 2.0% the signs of a recession are getting stronger. The market is hitting a five year low while oil prices continue to rise as the US dollar falls. So, what are you doing to keep the “Open” sign in front of your business? As a student in economics and being the frugal person I am here are some ideas on how to help your business cut cost on numerous fronts. Please be in mind that you want to cut fixed cost as low as possible while limiting the usage on anything that is a variable cost. This tip alone should help you save a few bucks.

First Tip, cut the power usage in your business! How do you do this? Start by installing fluorescent light bulbs in all light fixtures. Another way to cut electricity is turning up the thermostat during the summer or having it automated to fluctuate during certain periods of the day. If you own your own building look into getting a soy roof or a green roof. This should help the longevity of your roof and help reflect the light during the summer which will help your building stay cooler. With this in mind look into getting an awning for your front windows to help reflect the sun off the front of your store to help save some cost. Lastly, shut off the lights in rooms that are not being used frequently. This was always drilled into every child’s head while growing up.

Second Tip, cut the amount of paper that is used in your business by using more computers. Computers can help you save space and paper. Try to get a program that will allow you to save pdf files so you can store them easily. Space cost money, so save money by cutting the space you use.

Third Tip, shorten the amount of hours your shop is open. Many government agencies are looking to do 40/10’s which will allow them to shut the office down one more day out of the week to help cut cost on utilities being used. Take a look at your business and try to figure out which day tends to be the slowest day and close the shop on that day. This will help keep labor cost down along with many other utilities. If you implements this you may see an uplifted spirit in your employees, not only that you deserve a day off.

Fourth Tip, cut water usage in your shop by installing efficient equipment. This means getting a more efficient water heater, but also look into shutting off the water in your bathrooms every night. At times you may have a slow leak that will cost you a few extra dollars over the course of a month.

Fifth Tip, if your business does deliveries assign a given day to deliveries and plan the most efficient route. With rising gas prices this could more than likely save you a good chink of change. When doing this look at UPS’s strategies on how they try to make trips with only right turns so they are not sitting at red lights. 

Sixth Tip, use the Internet for sales! More than likely your customers are feeling the pain of rising fuel cost just like yourself. In order to accommodate your customers needs having an online store could improve sales and help lower labor cost. If you don’t have an online store already than this is a must!!

Seventh tip, look into hiring a few assistants abroad. Places like “Brickwork” are companies that provide virtual assistants and researchers to meet your needs. They have an experienced staff on hand at all times and they work pretty much around the clock. This was highly recommended in Tim Ferris book the 4HWW. The labor cost in these foreign countries is much lower than the USA and with technology being as advanced as it is today they can pretty much do anything for you.

Just remember to stay savvy about your finances. The goal is to keep expenses down to an all time minimum. You may have to be creative, but sometimes the best results come during times of distress. These little tips should help, but remember there are many other things you can do like cutting the cable or sharing a wifi hot spot with a neighbor. Good luck in your survival and feel free to get in touch with me about some more ideas on how to save your business from this latest recession.

Tags: Energy, Recession, Saving Money, small business

This entry was posted on Monday, July 14th, 2008 at 8:46 pm and is filed under Economy, Management, Out Source, Saving Money, money, small business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.