Savings plan

Entrepreneur, Feb, 1997 by Guen Sublette

In a volatile economy, on a shoe-string budget (and what entrepreneur isn't?), it really pays to scrimp and save. Just in case you've forgotten the value of a hard-earned penny, we've come up with a slew of money-saving ideas to boost your business's bottom line - from joining a prepaid legal plan or logging on to the Net to auditing your commercial lease and even unplugging your coffee maker. Though some tips will save you more money than others, the end result of your overall spendthrift strategy could add up to a bundle.

* MARKETING

1. Piggyback your advertising. Including advertising material in other mailings, such as in invoices, saves postage and other costs, says J. Donald Weinrauch, co-author of The Frugal Marketer (Amacom). Likewise, make the most of your point-of-purchase opportunities by tucking coupons, newsletters or other promotional fliers in the bag with customers' purchases.

2. Wait till the last minute. To keep print advertising costs down, consider "remnant" advertising. Many magazine publishers offer last-minute, unsold, discounted ad space.

3. Be a good neighbor. Split advertising and promotion costs with neighboring businesses. Jointly promote a sidewalk sale, or take your marketing alliance further by sharing mailing lists, distribution channels and suppliers with businesses that sell complementary goods or services.

4. Make a special TV appearance. Local cable TV stations often have very reasonable advertising rates at time slots throughout the day and night. Though you won't necessarily reach prime-time viewers, you will make an impression where it counts - in the comfort of potential customers' homes.

5. Go back to school ... and introduce yourself to the head of your local college business program. Many of these programs build community work into their curriculum and can provide valuable assistance in writing or revising your business plan - or doing market research - for free. For more information about such programs, contact the Small Business Advancement National Center at (501) 450-5300 or at www.sbanet.uca.edu/.

6. Be open to suggestions. For free market research, just ask your customers. Set up a suggestion box at your place of business (or online), suggests Weinrauch. Ask customers to fill out their names and addresses along with their suggestions, and you've got the making of a mailing list, too. While you're at it, ask your employees for cost-saving suggestions.

7. Follow the gurus. Jay Conrad Levinson is one of many marketing gurus to offer free marketing advice on the Web. Check out his free weekly Web magazine, Guerrilla Marketing Online, at www. marketing.com.

8. Offer expert advice. Teaching a class, speaking at a community meeting, or writing an article for a local paper not only makes you look like an expert but garners low-cost attention for your business.

* COMMUNICATIONS

9. Tune in to the Bells. the best long-distance deal. For a comparison chart of major long-distance carriers' features, services and discounts, send $5 and a self-addressed, stamped envelope to the nonprofit Telecommunications Research & Action Center, P.O. Box 27279, Washington, DC 20005.

10. Dial toll-free. Before calling a vendor, supplier, or even a customer, check the toll-free directory at (800) 555-1212 to see if they have a toll-free number. Or check out AT&T's toll-free number directory online at www.tollfree.att.net/dir800/.

11. Send just the fax. Rather than waste paper, transmission time and effort on a fax cover page, use a Post-it note or simply write at the top of the first page you're sending.

12. Set the standard. Send faxes in standard rather than fine mode to cut transmission time.

13. Collect some stamps. If you have free local calling, consider faxing all your local correspondence to save on postage, suggests David L. Scott, author of The Guide to Saving Money (The Globe Pequot Press).

14. Wait till after hours. Send outgoing faxes after business hours and benefit from significantly lower long-distance rates.

15. Give up your car phone. Use a pager instead. You'll save on costly cellular bills, but you can still be reached in an emergency.

* TECHNOLOGY

16. Take the electronic avenue. By setting up an e-mail box on the Internet, you can virtually eliminate many courier, overnight and postal fees. Get an e-mail account either through an Internet service provider (ISP) or a commercial online service. For further savings, read and compose all your e-mail offline.

17. Start your search engines. Research your market and find potential visitors for your Web site by looking through Usenet news-groups (forums on the Internet where people post messages for public viewing) and special-interest groups related to your target market, product or service. Or, visit America Online's Small Business Center, which includes libraries of small-business information you can download at no charge. For more extensive online information, use Yahoo's Business Resources (www.yahoo.com).

18. Advertise on the Net. Check out the Internet Advertising Resource Guide (www.voyager.net/adv/internet-advertising-guide.html), a Web site that includes information on everything from online advertising to how to get to other useful sites.