Savings plan

Entrepreneur, Feb, 1997 by Guen Sublette

33. Time your payments. Ask suppliers if they give discounts for early payment. If not, it's to your advantage to pay your bills - including utility, tax and supplier - as late as possible without incurring a fee, advises Scott. "The longer funds are under your control," he says, "the longer they're earning a return for you rather than someone else."

34. Draft a savings plan. Make your laser printer cartridges last longer by using draft mode to print interoffice memos and other less important documents.

35. Form a buying alliance. Join with another business or trade association for bulk purchasing and other discounts.

36. Cut down on copies. Monitoring your use of copiers saves on supplies and maintenance.

* INVENTORY

37. Get reacquainted with your inventory. What with warehousing, handling and insurance, inventory carrying costs often exceed 25 percent per year, says Collins. To recoup some of those expenses, present the product in a different light: "Restaging an old product is usually less expensive than introducing a new one," says Weinrauch. "Often all that's needed is to update its image, make improvements or create a spinoff."

38. Junk it. Get rid of unsold, damaged or returned merchandise at year-end, advises Holmes Crouch, author of 18 tax books. Advertise a year-end "fire" sale and save the advertisement for IRS documentation; then whatever you don't sell, give to the dump and get a receipt. "The lower your yearend inventory," says Crouch, "the higher your cost of goods sold - and the lower your reported net income and taxes."

* EQUIPMENT

39. Buy computers by mail. You'll pay for shipping, but the savings of not having to pay state sales tax often makes up for it.

40. Buy used equipment. Save up to 60 percent by buying used computer equipment, copiers and office furniture from stores such as the nationwide Aaron Rents & Sells chain. Auctions and newspaper classifieds are other good sources of used equipment.

* BUSINESS VEHICLE

41. Consider leasing. If you put lots of mileage on your business vehicle and expect to drive it for less than five years, try leasing. (Beware, however, of mileage limits and non-refundable deposits, which may make leasing less attractive.) Leasing frees up capital and enables you to drive a luxury car for less.

42. Put your best fleet forward. Ask your dealer if you qualify for a cost-saving fleet incentive program. Though such programs are typically geared toward fleets of 10 or more cars, some dealers will work with small-business owners.

* INSURANCE AND EMPLOYEE BENEFITS

43. Save by association. When looking for insurance, check with your trade association. Many associations offer competitive group insurance.

44. Shop around. At the end of each insurance policy period, review your business's needs and get several bids before renewing your policy.

45. Be prepared. Buying appropriate insurance upfront saves money in the long run, says Jeanne Salvatore of the Insurance Information Institute, a nonprofit organization in New York City. Consider what situations would be catastrophic to your business and protect yourself with adequate insurance. "Disaster recovery," says Salvatore, "is one area where business owners shouldn't scrimp."