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A little planning can save big money


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A little planning can save big money

  1. 1. A little Planning can save big MoneyPosted on December 9, 2011 by Usha PrasadSam Lazarus of Best Corporation, Inc., who is also a ServiceMaster franchisee, in Kansas, hasseen significant savings in his business by adopting various cost cutting measures. Let’s hear itfrom Sam himself -“With the economic downturn, as a small business owner I have systematically focused on costcutting. This year, I once again began evaluating every vendor that we have – from phones (celland landlines) to insurance providers, from utilities to property taxes,” says Sam.Here is a partial list of vendors Sam looked at and how he saved money -1. Cell phones: We cut off on a spare line. Analyzed all lines based on 12 month usage anddropped a few, and kept a few at the same plans. This saved the company about 12 percent permonth.2. Land Phone Lines: We are currently in the midst of analysis and will make changes in a fewweeks once we analyze it better.3. Trash Hauling: We initially invited bids and presented it to the vendor that was providing theservice. Since they were not able to match our requirement, the contract was terminated and wesigned a new one. With this, we have seen a saving of more than 60 percent. We also went fromtwo hauls a week to one haul and, for a larger dumpster.© 2011 Apptivo Inc. All rights reserved.
  2. 2. 4.For our fleet of 20 plus vehicles, we invested in purchasing equipment to provide additionalin-house maintenance of air intake systems and fuel line systems and cleaning them to get bettermileage on our vehicles. We are certainly getting better mileage.5. Payroll processing: We used to pay our employees weekly; now we are paying them everyother week. This resulted in the reduction of payroll production cost by 55 percent.6. Insurance: We had a commercial insurance broker to look at all possible options. Our vehicleinsurance increased a bit (expected due to losses in the previous year); however, our GeneralLiability and other policies dropped 50 percent.7. Buildings: Installed roof domed natural lighting to cut back on day time utilities. We will notsee a difference until spring with longer days and shorter nights. We are slowly changing otherlight fixtures as well. We are working on installing insulated garage doors etc., on otherbuildings we own.Owned by the Lazarus brothers, David and Sam, Service Master by Best Corporation, Inc.isKansas’ first and only Green Seal Certified commercial &residential cleaning and RestorationContractor offering services such as Air duct cleaning; carpet, rug and upholstery cleaning,commercial custodial/janitorial cleaning and green cleaning, fire damage restoration, waterdamage restoration, mold remediation, snow removal, sewer damage and Bio/blood clean-up.We hope you will be able to adopt some of the above mentioned tips to save money.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.We welcome your valuable comments and feedback.© 2011 Apptivo Inc. All rights reserved.