Savings plan

Entrepreneur, Feb, 1997 by Guen Sublette

46. Make a foul-weather friend. By arranging for an alternative place to run your business in case of a major disaster, you may be able to save on business interruption insurance, advises the Insurance Information Institute. For instance, you could arrange with a firm in the same industry to use their facilities in case of damage, and vice versa.

47. Check up on your medical insurance. Before choosing a medical insurance carrier, ask for information on past claims and the loss ratio of paid claims to premiums, advises the Council of Better Business Bureaus in Arlington, Virginia.

48. Raise your deductible. Raising the deductible on your insurance usually lowers your premiums. Even if you end up having to pay the deductible, it's likely to be less than the amount you save.

49. Make an adjustment. It often pays to adjust your health insurance stop-loss amount so that you pay a higher percentage, capped at a lower amount. Though in a worst-case scenario you could end up with more out-of-pocket expenses, your premiums will be lower.

50. Review your rates. "Often, business owners are classified for workers' compensation insurance under the wrong rate by their insurance company," says Gimba. "As a result, you may not be getting the proper discount."

51. Have employees chip in for health care. Giving employees more "ownership" of health benefits increases their appreciation of your health-care offerings and takes some of the costs off your hands.

52. Don't leave well enough alone. Sponsoring a wellness program for your employees can cut your health-claim and insurance costs. Promote a bike-to-work week or publish an employee newsletter of health tips, for example.

53. Offer perks. Often, it's the little things that make employees happy - and they don't have to cost a bundle. Consider buying movie tickets for local theaters at a bulk discount, getting a corporate rate at your local gym, or offering flextime.

* STAFFING

54. Aim to lease. Employee leasing - in which you turn over your work force to a professional employer organization that leases your employees back to you - can save you substantial cash on employee benefits, says Bruce Steinberg at the National Association of Temporary and Staffing Services (NATSS). For referral to a leasing company near you, contact NATSS.

55. Go with the flow. Rather than paying for employees who sit idle when business is slow, consider hiring temporary employees to handle surges in business.

56. Provide cross-training. If employees can handle more than one job, you may not need extra temporary help during peak periods, suggests Collins.

57. Make experience count. Get free or low-cost help - and give local college students a chance to learn the ropes - by hiring interns.

58. Use independent contractors. Employers generally do not have to withhold or pay any taxes on payments to independent contractors.

59. Commission your sales force. Overhead, salaries, incentives, training costs, fringe benefits and expenses add up when you're hiring your own sales representatives. Contracting independent manufacturers' sales reps, paid on commission only, is less expensive - and often equally effective.