4 Effective Ways of Cost Cutting in Small Businesses
A lot of small businesses around the world continue to lay off employees and cut benefits to beat recession that’s taken strong hold on the economy of the country.
The recession and debt of a country cripples the economy of that country. In your own way, you should try to get out of debt so that the economy improves a bit. For small businesses, cost cutting is a way to avoid falling in debt and if you’re a small business owner, you can check out the ways you can cut costs.
4 Ways Small Business Owners Can Cut Costs
It’s not just the employees who are feeling the pinch of getting pink slips, but the small business owners are also feeling the money slipping away from them. So, every decision you make has to be thought well before. So, take into effect the following ways you can go for cost cutting in your business:
#1 Employee Cut Back
The best way to cut costs in your business is to lay off your employees. This decision has to be thought over before you take any action. You need to review the quality of work your employees do and who are the employees you need to lay off. If there are any employees that take a lot of leaves and don’t work that effectively, you can consider them. The employees who need a lot of time to complete the work can be laid off. If you think that a certain employee is good in something else rather than what he’s doing, you can altogether dissolve his position and put him in any other rank and position. If you’re in debt because of your business, you can take help of all these ways and get out of debt with the money you save.
#2 Salary Cut Back
This can be another effective way to handle the recession in the economy and cutting costs in your business. You can cut back on salaries of your employees and also certain benefits that were given to them. You can talk to your employees about certain cut backs on salaries as well as voluntary cut backs on hours so that they are not laid off. It’s anytime better to cut back on salaries and hours than to lay them off. You can also increase the deductible of the health insurance policy that your company offers your employees. This can also help in cost cutting strategies without cutting back on benefits. High deductibles can also help the employees. You can also ask your insurance provider as to how you can use this plan to cut costs but still provide your employers benefits.
#4 Software License Cut Back
Getting a software license can be quite costly. These licenses are charged by machines. If you buy additional licenses for your business, it can get costlier. You can make use of software license by having your employees work in shifts. If your employees work in alternative shifts, they can share the software licenses and help in cutting costs. But before you do anything with your software licenses, just review your agreement so that you aren’t violating any part of the agreement. This way, by alternate use of the software licenses, you can easily save the money to get out of debt and cut costs.
#4 Working From Home
This is another way to cut costs. If you allow your employees to work from home, you can help save money from paying on furniture rent or utilities and other additional charges that are needed to maintain your office. Telecommuting can be an excellent idea to cut costs as well as make your business flourish.
If you’re trying to cut costs as well trying to get out of debt because of recession, you can take help of these measures. This’ll make you successful as well as help you save your business from going bankrupt.
About the Author: Ryan Smith is a contributory writer associated with the Debt Consolidation Care Community and has written several articles for various financial websites. He holds his expertise in the Debt industry and has made significant contribution through his various articles.
Photo Credit: dboy
Want to be our next guest author? Click here for details…
3 Ways Outsourcing Payroll Makes You a Better Leader
As a leader of the company, there are many things you want to handle yourself. For many it is a point of pride. For others, the reason for doing everything themselves is because they simply do not trust anyone to do as good of a job as they can do.
No matter what the reason, there is a very strong possibility that by doing so there are other areas of your business which are suffering. The reason for this is because you will not have the time to do many of the things you need to do to advance your business. Rather you will spend all of your time handling things which can easily be handled by other people.
The true sign of a good leader is someone who has the ability to delegate effectively. One of the areas which should always be handed off is payroll services. While it feels good to sign all of the checks yourself and figure out how much everyone is getting paid, it can lead to costly mistakes as well as tax problems which will land your business in hot water. What kind of a leader will you be if you end up costing your business more money because of pride or stubbornness?
Provide your employees with direct deposit
One of the things which more employees are looking for through their workplace is the ability to receive their checks electronically. There are a few different reasons for this. Some enjoy getting their check a little early. Others simply do not like having to make the mad rush to the bank on Friday to deposit their check. It is a matter of convenience which your employees will enjoy and it is a service offered by small business payroll services.
Stay current with the laws
There are a few things which make you a good leader within your company. Knowing all of the payroll laws which have recently been passed by the government is not one of the things which will help to make you a better leader. Any payroll service you hire will make it their business to know all of the laws which are current and what they will need to do in order to maintain compliance for your company. By doing so, your company will be able to stay clear of any legal entanglements which are caused by not knowing the law.
You get to do your job
Being a great leader means being able to concentrate on what it is you do best. Show your employees how they can run a successful business by doing so yourself. When you do not have to concentrate on things like payroll, it is possible to move on to more important things like meeting with clients, sitting in on important meetings and more. You will be able to spend your time doing what you got into business to do rather than spending your time doing what someone else should be doing for you.
About the Author: Resource Nation provides free tools, tips, and purchasing advice for business owners and entrepreneurs in over 100 business categories ranging from payroll services to credit card processing. Whether it’s connecting businesses with local and national pre-screened vendors, or offering easy service comparisons on small payroll services, Resource Nation empowers business decision makers by providing the information they need to make smart choices.
Want to be our next guest author? Click here for details…
5 Important Features and Services to Look for in a Web Host
Hosting a website to showcase the company is more important than ever. It has become less common for companies to use certain marketing techniques such as brochures and yellow page advertisements; instead there is a high reliance on websites.
The method to communicate a company’s message through the website is a fraction of the cost of other, more traditional, marketing methods. In these tough economic times business owners can’t afford to miss the opportunities the web offers. At the same time, choosing the right hosting company can be one of the biggest decisions in making the web work for your business.
So when choosing a Web host, you should focus on getting what you need at a price point you can afford. Shopping around to find a host and a solution that fulfills your needs for a website ensures that your new site will be an asset to the success of your business.
Chris Conley of C Solutions Inc, a software development company, and a 1&1 customer, found that 1&1 Internet offered him the features he needed to build up his growing business. “I used a professional design firm to build my website from a template many years ago. But by looking into 1&1 Internet, I realized that the affordable price for such great features and rock solid reliability could not be passed and I began to work closely with them [1&1 Internet],” said Conley.
Some important features and services to look for in a Web host include:
Technical Support
A Web host offering 24/7 customer support is putting an emphasis on supporting their customers. Customers can get answers when they encounter issues or if a simple question arises about their hosted solutions. Constant accessibility to a support team is especially important to businesses that rely on their Web host to provide dependable service.
Space
The amount of space required for a website will depend on the growth expectancy of the site and what its primary use will be. For example, a website that will incorporate music and videos will need more space than one that only includes text. If you are unsure about how much storage is needed, look for an option that provides flexibility to increase or decrease Web space as your company needs’ change.
Reliability
“If a prospective client receives a poor impression of your company due to weak or spotty services, it will reflect negatively on your business,” said Conley. He advises business owners to look for a dependable Web host that offers over 99% reliability, like 1&1 Internet. “With such a dependable company, you can rest assured your company’s website will be shown properly and reliably.”
Statistics
Website statistics are a great marketing tool. Business owners can use the data to learn how many visitors the website has, which pages are most popular, how the visitors are arriving to the website, and if the site is experiencing errors. These facts can be a guide to determine how to optimize each section or feature of the site. Owners can also work to resolve any issues that arise and try to prevent them from occurring again, thus keeping potential customers satisfied.
Price
Price is an important factor when discussing IT for your business. When choosing a Web host, be careful that you don’t judge providers by their pricing. The most expensive provider may not give you the most features at the best price. Conley chose 1&1 Internet because of the value he was getting for the very competitive price. All features he needed were accompanied with great reliability and support.
“As my hosting company, 1&1 has proven to be a great partner in getting my company’s message out to clients and prospects everywhere. I am now excited to say that I have clients all over the world with the help of my Web host,” said Conley. Businesses are encouraged to make a list of every feature that is needed for their website to include. Use it to compare similar Web products, and then pick the one that provides you with what you need without hurting the budget.
About the Author: This article was contributed by Kelly Meeneghan, Public Relations Assistant at 1&1 Internet Inc
Photo Credit: WWW?
Want to be our next guest author? Click here for details…
5 Insider Tips For a Good Pitch from a Venture Capitalist
At some point you may be thinking about raising additional funds for your business to grow and expand. If that’s the case, you’ve probably thought about venture capital as one source of those funds.
Not only is venture capital tough to get, but pitching to a VC can be intimidating – but it doesn’t have to be. Here are five great tips from an actual VC who explains what it takes to make a good pitch and give yourself the best chance to get the money.
Tip #1 – Every Step is to get to the Next Step
Every time you communicate with a VC your goal should be to get to the next step. No overkill – sure you want to share mountains of data with them right off the bat, but instead you should be looking just to get a meeting. Instead of overwhelming them, think in steps – and at first it goes introduction, then meeting, then pitch, then money.
Tip #2 – When you Get the Meeting Be Succinct
You may get an hour meeting, but it won’t be for an hour. Huh? True, they may give you an hour, but when you factor in somebody being late, cell phones ringing, or other technical issues, your 60 minutes will more likely be 15-30. Create your pitch with that timeframe in mind. If you get done in 15 minutes, great then you have 45 minutes to answer questions. Much better than banking on 60 minutes and winding up with 10.
Tip #3 – Get to the Value Proposition in 5 Minutes
VC’s want to hear what you can do, what value your idea/business brings, and do you have credibility. The quicker you can demonstrate this the more likely they are to keep listening. VCs by nature have short attention spans, if you’re not telling them something interesting they’ll quit listening.
Tip #4 – Keep the Overall Pitch Short
You should be able to clearly articulate your message in 20 minutes. If you can’t get it down to 20 minutes rethink your pitch or rethink who you are pitching to. These VCs should be pre-qualified to your industry so don’t waste valuable time trying to “bring them up to speed” on fundamentally what you do. They should already have a general idea of what your business does, if they don’t they are the wrong VCs for you.
Tip #5 – Control the Meeting
May sound hard to do, but you need to keep control of the meeting. You come in and tell them “I have 20 minutes and 10 slides, bear with me and we can talk at the end”. You have the podium and the audience, don’t let that control slip away. Your goal is to get through the meeting, without getting off track, so that you can get them all of the information they need about you and your business in order to make a decision.
Heidi Roizen – Mobius Venture Capital
Photo Credit: Tracy O
Want to be our next guest author? Click here for details…
Courses in Online Entrepreneurship
According to the Kauffman Foundation, almost 3,000 schools offer classes in entrepreneurship, up ten-fold since the mid-1980s. Entrepreneurs can spend thousands of dollars paying professionals to take care of various aspects of their businesses, or they can spend substantially less money and learn these tasks themselves by taking online courses.
Entrepreneurs and small business owners who don’t have the time or money to take an entrepreneurship degree program have the option of taking individual classes. They can also take a certificate or diploma program, options that cost less than degree programs and typically are completed in a few months.
Online classes provide entrepreneurs the opportunity to get expert advice from instructors and share ideas with other students. However, students should be aware of the dangers that may come with sharing their million dollar business ideas online.
There are numerous unaccredited, for profit schools offering entrepreneur related courses. The quality varies by the school. The admissions representatives from online, private schools, typically are also sales people and receive a commission for enrolling students. Do your homework before enrolling at one of these schools.
U.S. Small Business Administration
The U.S. Small Business Administration provides a free online training resource called The Small Business Primer – Strategies for Success. It is designed for those who want to start their own businesses and for those in the early stages of operating a company. This resource also provides links to numerous applicable resources and small business tools.
Best Colleges for Entrepreneurs
Fortune Small Business (FSB) has put together specialized lists of the best colleges for entrepreneurs. The lists are based on seven months of interviews with hundreds of entrepreneurs, students, professors, university administrators, alumni, and venture capitalists. FSB asked each person which programs they thought to be the most effective and innovative and why.
Below is FSB’s list of the best colleges for entrepreneurs that provide e-learning opportunities. (Note that these schools are listed alphabetically.)
- Boston University
- Grand Canyon University
- University of Houston at Victoria
- University of Wyoming
- Western Carolina University
Boston University offers an online four-course certificate in entrepreneurship. Some schools allow students to take just the courses they’re interested instead of the whole program.
The University of Arizona’s top-ranked McGuire Center for Entrepreneurship offers three separate non-credit entrepreneurship courses. The courses are offered through the University of Arizona’s Outreach College. The McGuire Center’s program has been ranked #2 nationally by The Princeton Review. It is designed for those hoping to start a small business or grow a current business. The program also provides mentoring from McGuire Center personnel.
Free Entrepreneur Classes
Here’s a list of colleges and universities offering free online entrepreneur courses:
- Kutztown University of Pennsylvania
- Capilano College
- Open University
- Massachusetts Institute of Technology
- UC Berkeley
(It should be noted the author has no connections with any of the schools mentioned in this article.)
Quality entrepreneur courses can be highly beneficial for entrepreneurs and small business owners. Online classes offer convenience and flexibility.
Photo Credit: lumaxart
Want to be our next guest author? Click here for details…
Taming Online Holiday Sales: End-of-the-Year Shopping Blitz Doesn’t Have to Be a Bear
According to a survey by the National Retail Federation’s Shop.org online arm, 64 percent of retailers expect their companies’ online revenue to increase by at least 15 percent compared with last year.
That’s quite a jump compared with the 45.8 percent that expected an increase that size last year. What this means, of course, is that online sellers are presented with a huge opportunity to cash in on holiday shopping this year.
Tips to Prepare for the Holiday’s
Following are a few steps online sellers can take to prepare for the holiday shopping blitz — and avoid the ensuing inventory mayhem.
- Reach out to your past buyers first to offer an “early bird” discount. Give them a special offer for being a repeat customer.
- To ensure that new customers can find your site, search-optimize your best-selling products. Google Webmaster Toolkit offers a number of free tools to identify which of your products is being searched the most, and how to find appropriate keywords and optimize your Web site.
- Take advantage of “fixed” events! Make sure to have a promotion ready for hot online sale dates like Black Friday, Cyber Monday and Free Shipping Day.
- Grow sales by offering some variation of fast and free shipping — without destroying your margins. For example, provide free shipping only on orders that cost more than a particular amount. Or try offering flat-rate shipping, even on expedited orders. You’ll find some other ideas at our free shipping promotions blog post.
Tips to Handle Holiday Demand
Although these are some great ideas to increase sales, remember the old saying: “Don’t be a victim of your own success.” While huge online sellers such as Best Buy have the infrastructure to easily handle the huge spikes in demand leading up to the holidays, it’s a little tougher for a small business. What is an SMB to do?
- Take a look at your e-commerce technology — especially your shopping cart and order management infrastructure. Does it work well enough to handle your holiday sales volume? It is likely too late for you to significantly change your shopping cart or inventory order management software in preparation for this year’s holiday spike, so consider minor adjustments to what you already have in place.
- Have a plan in place for effective inventory management. If you’ve resigned to handling the holiday onslaught yourself, make sure you have adequate inventory ready to ship, as the orders come into your shopping cart. The fastest way to lose a current (and future) customer is to tell him that his Christmas gift is on backorder and won’t arrive until after the holidays. Make sure you know your inventory levels, and ideally connect them to your shopping cart so you don’t oversell.
- If you’re not using your own warehouse to store product, increased holiday sales will likely require extra room for the pre-holiday inventory. And, be sure to allocate enough time to pack up boxes and take them to the post office. If you’d prefer not to deal with these issues, a number of companies, including Shipwire, offer e-commerce order fulfillment services.
- Consider instating a returns policy now so you’re not caught off guard in late December. Remember that returns are a great way to build customer loyalty: If it’s too difficult to return a product, the buyer probably won’t come back again.
With a little preparation and a lot of consideration for your customers, you’ll have a competitive advantage over other online sellers — one that should lead to multiple repeat sales throughout the New Year.
About the Author: Damon Schechter is the founder and CEO of Shipwire product fulfillment. Damon also blogs about business growth at http://www.shipwire.com/blog.
Photo Credit: x-ray delta one
Want to be our next guest author? Click here for details…
5 Lessons for Brick and Mortar Small Businesses from a Website Perspective: Is Your Store Readable?
First impressions count. That is an accepted maxim and there is truth to it. Within the first 7 seconds, what will your visitors see? Is your store “readable”?
I bet you think I’m talking about an online store, but I’m not. I am talking about bricks and mortar, real world storefronts, where you and I shop. Or at least we used to. I just recently worked on a hyperlocal small business project where I walked and visited along the main street of two towns near me. I visited 70-plus retail stores, shot 170 short videos (1.89 Gigabytes worth), had 10 great conversations with employees or owners, experienced 2 epic fails, and discovered 21 takeaways for small business owners based on my usual online work combined with this Main Street walk.
My motivation for doing this project came from hearing stats that approximately 50 percent of small businesses don’t have a website and I would argue that a higher number have a useless website or online presence. Please print this (or my 21 Tips from link below) and share it with a local merchant when you don’t see them mentioning their online efforts in their retail stores. Help your neighborhood store.
1. First impressions do count
Have you really thought about what happens when someone walks into your store? I mean, from a sales perspective, what will they do? What do they do? Here are a few thoughts:
- Where do your eyes go when you walk in the store? Better, recruit 20 customers and buy them lunch after they help you sort this out.
- Does the store seem inviting?
- Do you engage the senses? Is there music playing? A video playing with people using your products? A touchscreen computer that customers can use to find things in your store?
- Is there one thing that captures attention and captivates your walk-in customers and that they head straight for, every time?
2. Is your navigation easily understandable?
What am I talking about here – there’s no navigation in a retail store… Really? Signage is navigation.
- Is it compelling, fun, energizing?
- Do you have a location in your store that shouts “Contact Us” or “About Us”?
- Do you have testimonials or quotes hanging around?
- Awards you’ve won? Client list? Customer success stories?
3. Does your store have a lead capture mechanism?
This goes with the Contact Us comment in point 2, but do you think about using the point of sale to capture email addresses or cell phone numbers for a text messaging campaign? Do you offer coupons or special deals? I think your customers and prospects probably want to know about them and are probably willing to give you their contact info.
4. Readability
Can they read the signs you have up or are they in some frilly, elegant, fancy font that people can only read them when they are five inches away. You may think I’m kidding. We drive at 80 miles per hour and we usually have a cell phone in our hands; the same brain speed continues when we enter your store. Put up road signs so large that the visually impaired can read them from outside the store. Okay, so I’m laying the vegemite on a bit thick here and you only need a thin spread to get the flavor.
5. How many visitors did you have last month? How many purchased something?
I have yet to see a store besides Costco count people when they come in. Why not? Do you think they are doing anything with that data? I think so, but I don’t know for sure. Doesn’t matter. You could. It might not be pretty or pleasant, but you could start asking yourself hard questions about how many come in, how many that come in actually purchase, how many come in and leave without buying? The “ouch” moment could lead to an “Aha” moment and more sales.
In Conclusion
Small business is the lifeblood of our world economies. If you believe that, don’t just shop and buy local, encourage your local merchants to step up their intensity, get in the social stream, and make a difference in their own sales success. If 50 percent of small businesses don’t have an active, useful, or profitable website, many will start to wilt and die. Some will survive without an online presence, to be sure.
Remember Smokey the Bear with “you can prevent forest fires”? Well, you can prevent small business failures. Are your local merchants making their stores readable? Is the first impression a strong one? This isn’t just friendly advice you’ll share with a local merchant. Advice like this is what will keep them in business and on Main Street and that’s what we all want: Diversity and energy and success for retailers and other small businesses because they help drive our economies.
About the Author: TJ McCue is the founder of SalesKickstart.com, which helps small businesses increase website traffic and sales. He visited 73 stores over two days in November 2010 and wrote 21 Takeaways to Save Small Businesses on Main Street at his blog.
Photo Credit: esparta
Want to be our next guest author? Click here for details…
How Businesses Can Save Money This Holiday Season
The holiday season can be a busy and somewhat expensive time for companies. There are parties for staff, gifts for select customers and clients, and decorations – just to name a few expenses. But the holidays don’t have to drain the company bank account. There are things that your business can do to save money during the holiday season.
Choose Potluck
For this year’s party, why not go potluck? It can be very expensive to book a restaurant or hotel for a holiday party. And because of that cost, you may end up having to charge your employees for attending their own party. But, if you rent out a room and have a potluck gathering, it will not only cost the company less, but also cost your staff less. It also adds a nice, homey touch to the party. Staff can bring in their favorite food and even share recipes. This option usually means more food for less cost. Also, since the staff is bringing in the food, you can be guaranteed that they’ll like it! And at the end of the party you can send the leftovers home with everybody so there’s no waste.
Bulk up your Holiday Cards
If you send out Holiday business greeting cards to staff and clients, order them in bulk. This will save you a lot of money since you can cash in on bulk discounts. With most business greeting card companies, the more you order at once, the cheaper the order is. You can save quite a bit of money by ordering the same cards for your clients and staff. And instead of mailing out your client Holiday cards, consider hand delivering them. If your clients are local, you can save money on postage. Also, it’s more personal to drop off a Holiday card than it is to mail it. If your clients Holiday cards have to be mailed, consider doing it in bulk to save money.
Furlough Employees During the Holiday Season
Everybody is busy during the holiday season, but sometimes, depending on your business, it can be a slow time. If you don’t need to have your staff at full capacity, offer extra days off. Some staff members will be more than happy to take a day or two off without pay during the holiday season so they can get caught up on holiday tasks or spend extra time with their family.
Forgo Client Gifts
If you send your top 50 clients a holiday gift, that can add up, even if it’s something simple like a box of chocolates. You have to pay for the chocolates, wrapping and shipping. That can equal a lot of money. Instead of sending out a gift, why not offer a discount coupon? When you send out your Holiday business greeting cards, include a special Holiday coupon. It can be for a certain percentage off or a free item with a minimum purchase. Not only do you save money on the purchase of Holiday gifts and shipping them out, but you can bring in some extra business during the Holiday season. If you do opt into sending certain clients a Holiday gift, look into ordering them online. You can save money on shipping and there is often a discount if you order in bulk.
Recycle Holiday decorations
If your office decorates during the holidays, make sure to reuse your decorations from year to year. This can save you from having to buy new decorations. If you do need to replace some holiday decorations, shop after the holidays are over, when decorations can be on sale for as much as 80% off. Another option is to let your staff bring favorite decorations from home. If each employee decorates their own office or work station, then the company won’t have to provide decorations.
The holidays don’t have to be an expensive time for your company. By following just a few money saving tips you can have a happy holiday without breaking the bank.
=
Author Bio: Diane Ferraro is a writer for a business greeting cards company and is always looking for ways to save money –especially around the holidays! When she is not writing or blogging, Diane loves to spend time with her twin daughters.
Photo Credit: alancleaver_2000
Want to be our next guest author? Click here for details…
How to Choose the Hottest Apps for Your Blackberry
The Blackberry is a smartphone which has become synonymous with the business world. It almost seems strange to see a professional using anything other than a Blackberry as their smartphone. One of the things which continue to make the smartphone such a great business device is all of the great apps which are released for use on the smartphone.
Getting the latest and greatest apps is not always easy to do as there are so many out there to choose from. It can be difficult to pick out the ones which are gems from the ones which are straight garbage. After all, there are no telemarketing services to tell you about the latest and greatest apps available.
Finding the Hottest Apps
So, how do you find out about the latest apps which are available for your Blackberry? It is simple as long as you know which places to look. In fact, many internet sites have made it their platform to talk about the Blackberry and all of the latest great apps which are available for it. By reading about the top rated apps on these websites, it is possible to not only know about which are the greatest, but why they are considered to be the greatest apps available.
You’ve Got the Apps, Now What?
Once you have chosen the apps you will use on your Blackberry, it is time to learn how to use them. The same sites which will tell you about the apps you should be using will tell you how to get started with them.
In most cases as soon as you install the app, the app itself will walk you through using the service. The idea of the app is to make everything you do easier, so the apps are all designed to be intuitive and to allow you to get more done. Learning to use the app should be easy for you to do.
Last Step – Organize
After learning how to use the app, it is a good idea to rearrange the order the apps are in on your screen. Rearranging the apps makes it possible for you to find the ones you use the most easier. After all, the last thing you want to do is search through ten screens of apps to find the one which you use just about every day. Such apps like Documents To Go might just be your go to app and it is not a good idea to bury it.
Worry Free Telemarketing
The great thing about the Blackberry like all other smartphone is you will not have to worry about B2B telemarketing as it is illegal to market in any way to a cell phone. Is it any wonder why so many professionals are using their smartphone for everything from receiving phone calls to completing documents on the go?
A Bright Future
The future of the app industry is bright as all of the users on all of the different smartphone services are constantly on the lookout for the next great technological marvel in the app world.
About the Author: Resource Nation provides free tools, tips, and purchasing advice for business owners and entrepreneurs in over 100 business categories ranging from telemarketing services to credit card processing. Whether it’s connecting businesses with local and national pre-screened vendors, or offering easy service comparisons on a B2B telemarketing, Resource Nation empowers business decision makers by providing the information they need to make smart choices.
Want to be our next guest author? Click here for details…




