Cost-Cutting Ideas You Might Not Have Thought Of

Source: Wall Street Journal
Author: By BARBARA HAISLIP

Small-business owners have always tried to pinch pennies—but now keeping costs down is a bigger priority than ever. To find the best money-saving tips around, we turned to the Entrepreneurs’ Organization, a nonprofit that aims to help business owners around the world learn from one another. Here’s what some of the group’s members had to say.

Save on Shipping

Alex Andrawes, chief executive officer of Personalwine.com, says he saved almost $20,000 last year by using a smarter shipping method.

When customers enter their address into the wine seller’s website, the information is automatically sent to UPS, which verifies it and sends Personalwine a code for making a shipping label. Mr. Andrawes says the system—which is also available for other shipping companies and the Post Office—saves hundreds of man-hours on processing orders and prevents mistakes that lead to returns.

Lower the Cost of Debt

The interest rate being charged on debt is more important than the amount owed, says Charles D. Katz, an accountant in Sudbury, Mass. So, he advises listing all debts owed by your company, starting with the highest interest rate and going on down. Pay the minimums on the lower-cost debts, and pay off the highest-cost debt as fast as possible.

Let Workers Telecommute

Craig Smith, founder and CEO of Trinity Insight LLC, an e-commerce consulting agency in Philadelphia, boosted his company’s efficiency with free software that lets employees access their office computers from home. Before these tools, such as LogMeIn, Trinity Insight would have to deal with employee absences for doctor appointments or family illness. That meant key tasks weren’t being done in a timely matter.

Mr. Smith says, “Having employees being able to get tasks done from home allows the business to run more effectively and allows us to ensure that client needs are being met, while at the same time allowing our employees to have a work/life balance.”

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JRI Consulting, LLC