Start by means of taking a renewed inventory of your fixed assets. Then try to application more e-mail and less gasoline. Here are some tips to get started
by Karen E. Klein
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Small concern owners are always looking to cut expenses where they can. But in today’s business climate, reducing outlays may be particularly important. In this column, Smart Answers shares several tips on how fine companies can save on operating expenses.
Do an "asset audit." Many businesses aren’t sure exactly the kind of they own in fixed assets. Of course, large items like attribute, buildings, and manufacturing rigging are easy to take care of track of, says Marcus Scholes, vice-president of Real Asset Management International, a Boston software company. But technology assets such as laptops, flat-screen monitors, printers, fax machines, and PDAs can easily get lost or forgotten.
"A company’s fixed assets are often person of the biggest business items on its financials, but they are often haphazardly managed," Scholes says. Not having a handle on your assets can be costly: You may be profitable taxes and insurance premiums put on items your company no longer owns.
If you haven’t done an inventory of your assets in a long time, set aside an afternoon or a Saturday and list everything your company owns. If you have a barcode combination of parts to form a whole, or an earlier asset list you be able to start with, that will constitution your audit easier. If you don’t, simply walk around by a pad of paper and create note of every one of your assets. Don’t forget furniture, fittings, fixtures, and IT equipment.
"In our experience, up to 20% of property on companies’ book are no longer in existence," Scholes says. You can eliminate those items the next date your insurance is updated and when your taxes are what is due. "Shadow assets that lurch on asset registers solely no longer as a matter of fact exist are costing many businesses thousands or more per year in state property taxes," Scholes notes.
Having some true, updated asset list have power to aid with insurance recovery in the case of a fire or other disaster, and keep your company current on the best strategy for depreciating those estate towards assess tribute upon purposes.
Use e-mail over postage mail whenever possible. May 12 marked the latest in a series of U.S. Postal Service price increases (BusinessWeek.com, 7/17/07), to 42 cents for a one-ounce, first-class stamp. This is the fifth increase since 2001, during which rates esteem gone up nearly 24%.
Combine annual increases in mail rates with the rising cost of paper, envelopes, ink, and printing, and greatest part small companies light upon that doing business through postage mail is far more splendid than using e-mail, .pdf files, and Web sites, says Thomas Harpointner, chief executive of AIS Media, each interactive marketing company in Atlanta. "We’re seeing fewer companies that produce four-color, sheeny brochures, informational CDs, and print catalogs these days. They are more well-suited to rely on digital documents, secure-login Web sites, and e-mail marketing," he says. "A sales person can refer customers to the company’s Web site preferably than mailing out a printed pamphlet."
Things such as company newsletters, trade publications, and sales catalogs are all instigating online as companies cut costs and respond to environmental concerns. While certain legal documents, such as contracts, may still require paper originals, many small companies can application electronic formats instead of most of their communications with suppliers and customers. Online marketing campaigns cost about a penny per e-mail, Harpointner says, and outsourced e-mail service providers can help gather e-mail direct one’s speech, navigate "opt-in" palaestra and quantity with spam filters.
Return on investment is higher with e-mail marketing than it is with prescribe to postal mail, and e-mail can be tracked, with 90% of metrics typically approach in within 48 hours of the time the campaign was launched, Harpointner says.
Manage your fuel use carefully. Everyone is being good stroke rough by the skyrocketing price of gasoline, but companies such as plumbers and florists are suffering more than most. They cannot erase combustible matter costs without also wounding out revenues. But they can figure out ways to reduce those costs by managing their fuel use.
Reducing drivers’ speed, training them to avoid excessive idling, and plotting out the most efficient routes have power to completely help divide phthisis, says Todd Krautkremer, CEO of Gearworks, a Minneapolis company whose fuel-management software runs on cell phones and GPS devices. Other companies, such as 4Refuel, based in British Columbia, do on-site refueling to cut in a puzzle labor time at the gas interrogate, and manage combustible matter employment through strategies like regular provisions.
"If drivers have to get to a particular customer but they don’t take the most direct route, it accounts for 3% to 10% of their driving time. If they be able to get to a destination more efficiently, it will immediately cut up to 10% of the company’s fuel cost," Krautkremer says. Navigation systems and informed dispatchers also help prevent drivers from getting lost and wasting gas driving around looking for a client location.
Training drivers not to speed and monitoring their compliance exist possible to also save money. "Going 55 mph vs. 60 mph saves a half-mile per four quarts on fuel good housewifery. If your firm has 10 trucks traveling 100 miles a day, that’s $4,500 a year in extra fuel expense you can save by just slowing them from a thin to a dense state by 5 mph," he says.
For companies that simply cannot divide costs enough to continue business profitably, raising prices may be the only option. "This conjuncture we face today, particularly with elastic fluid, is not something the corporation owner feels unaccompanied. Individuals feel it too, since they are filling up their own tanks. So your customers may be more sympathetic to your price increase than they would be in another spot," Krautkremer says.