For all your online business building info! , 2020-02-23 19:16:56
Saving Big Money by Sharing Business Costs
Remember when you where young and you wanted exclusive rights to whatever your little hands were grasping and some adult said, “It’s good to share with others!”
Now that you’re an adult with your own business and a strained budget, you should remember what they tried to teach you in the past, “It’s good to share!” Business owners who are trying to manage a business on their own can rack up considerable costs. Try to find other small businesses to share the large expenses for things such as equipment costs, office space costs or sometimes even advertising costs. This is a way to save large sums of money for the business and of course you as the business owner.
Below you will find some known budget savers:
1. Save Money on Sharing Business Space
If you’re looking for (new) office space then you shouldn’t try to find it on your own. Instead, try to find a broker and ask the broker if they know anyone with office space to share. Sharing office space can give you and the other business owner the ability to share the rent, conference facility and office equipment such as a copier or large multi-functional printer. All at a fraction of the cost if you and the other business owner(s) would have rented an office space on your own.
2. Income by Renting out Office Space
Of course, the other way around works also, you can lease your leftover office space to other small businesses. Let brokers know that you are in the market for businesses to lease vacant office space. Let them know that you are searching for businesses that are willing to setup a collaborative budget for office supplies and equipment.
3. Saving Money by Sharing Support Staff
You can even take it a step further for instance by sharing support staff with other businesses that are in the same building. If there are many businesses in the same office complex you can for example share the receptionist or other similar support positions. This could save you a lot of money on labor costs.
4. Save Money on Office Equipment
If you share office space or you are one of many small businesses in an office complex then try to share the costs of office equipment such as copiers, printer and fax machines. Not only is less expensive, but you could also buy or lease more sophisticated copier. For instance one that is capable of handling jobs that normally would have been done by a pricey printing shop. You can have this for a fraction of the normal costs, because the businesses share the bill!
5. Save Money by Buying in Bulk
Many small businesses buy office supplies on their own, but it make much more sense to setup a consortium of small businesses to harness the buying power in one group. By forming a buying consortium you could approach the outlets directly and asking them for a large discount if you bring the business of the buying consortium to their business. This can save each business in the consortium thousands of dollars each year on the office supplies bills.
6. Save Money by Group Advertising
After every one in the buying consortium see the advantage of this consortium you should put in a suggestion that the consortium should be expended to advertisement field. By buying print advertisement or broadcast advertisement as a group the consortium and of course its member can save a lot of money.
For example the consortium advertising campaign could look as follows: A business complex with all the businesses form a consortium and they buy advertising time from the local radio station. Each week they boost the entire complex with ads on the radio. Every other week this ad space is replaced with publicity for a couple of individual businesses from the consortium. This way they all get air time for a fraction of the costs.
7. Save Money on Printing Costs
As with the buying in bulk or the group advertisement the consortium could also print en mass. Try to get a large discount from a printing sales representative by telling him or her that the consortium is willing to print all their flyers, brochures and sales materials by their company. Most sales representatives will jump on such a deal and are most likely willing to give a very large discount to get this deal. We’ve seen small businesses save 20% on printing costs by getting such a deal!
These are just some examples, but you can see the power of forming a consortium of small businesses. They have a much better bargaining position than one individual small business, thus they can get much larger discounts on things. We hope that you’ll see that the savings your businesses can make are worth the costs of sharing.
One last tip: make that all agreements are put in writing and that the consortium comes to getter regularly to talk things through.
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