Implementing effective cost cutting measures saves good money


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Implementing effective cost cutting measures saves good money

  1. 1. Implementing Effective Cost Cutting Measures Saves Good MoneyPosted on December 12, 2011 by Usha PrasadAndrew Schrage, Founder and Editor of Money Crashers, launched his start-up SparkChargeMedia – a conglomeration of financial websites including MoneyCrashers, in 2008. He startedhis business on a shoestring budget at the height of the recession.“With my business plan, I knew how much I had in savings that I was willing to allocate towardsthe business, and I derived my budget directly from that number. And I found ways to save onjust about everything. I did virtually all of the legwork myself in the beginning. I did not have anaccountant, I did not have an editor, and I did not employ any other professionals. While thismade for extremely long work days, I saved a lot of money. I also bartered for a lot of services.For example, I did some housework for a friend of mine who helped me develop my websitebasically for free. Lastly, I bought just about all of my office supplies, furniture, and computerequipment “used” to save even more,” explains Andrew.Implementing some very effective small business cost cutting ideas in 2011 has further helpedAndrew save a significant amount of money, including one of his favourites – moving to freeforms of marketing.© 2011 Apptivo Inc. All rights reserved.
  2. 2. Let’s hear from Andrew himself on how he was able to save good money.Marketing: We saved a lot by implementing an effective Facebook page for marketing for oursite, which has brought us a new source of subscribers and readers on a daily basis. Rather thanspending money on things like expensive banner advertising, social media has enabled us to cutcosts while targeting a specific demographic.Automation: Our payroll system was outdated and cumbersome, so we went with an onlinepayment processor. The result was a significant savings in time (which ultimately saves usmoney) and a more convenient system for our employees to get paid, using outright software.Stressing Time Management: We stress efficiency into our team, but in 2011, we actuallytook it a step further and provided our team with a list of small business time management tipsthat they could implement on a daily basis including organizing their office space well, and nottrying to multi-task too much.Increased Oversight in Marketing Initiatives: Up until this year, we would “spitball’ amarketing initiative, put it into place, and let it run its course. What we found out was that wewere identifying far too late in the game the ideas that simply weren’t working for us. We nowhave a goal-based program for all marketing initiatives, so they are now tracked and monitoredon a timely basis to assess their return on investment.Take Our Own Advice: Another neat luxury is that we have benefited greatly from theexpertise of our employees. Since they naturally are financially responsible and have a passionfor saving money, I have been able to learn from their tips and save money on by bundlingonline services, switching bank accounts for our business to minimize our banking fees andmaximizing our interest rates, and using payroll debit cards. These ideas have all resulted insignificant savings for the business, and I got all of these tips absolutely free!Moving to Plastic: I have always been a little scared, to use plastic. When we realized that wewere giving up free money, we finally made the move to utilize some of the best small businesscredit cards. Now we receive miles, cash back, and more perks for our business expenses.Moreover, we’re able to put limits on any employee cards to minimize risk there as well. As longas you’re able to pay off your bill every month, I strongly recommend paying for expenses with acredit card instead of cash.If you are a Small Business Owner, who has made significant savings by adopting various costcutting measures, feel free to share your experience with us.© 2011 Apptivo Inc. All rights reserved.