Save $60K this year

Home Office Computing, Jan, 1998 by Linda Stern

Another day, another $264.73! Take the next 12 months to scour your business practices for hidden wealth and you could save enough to buy a new computer system -- and a nice condo to put it in. Here's our latest crop of money savers, guaranteed to put more cash in your coffers every month. The usual caveats apply: Some savings vary considerably, depending upon your business practices, so there are a few figures we eyeballed. And not every strategy works for every business; still others cancel each other out. So what? Pick the best of the crop and have thousands in hand by the next new year.

JANUARY: Money-Saving Resolutions

* Don't forget: Time is money. Spend your time doing the things only you can do. Don't pay yourself $50 tO stuff envelopes, hire a teenager. Most smallness owners use up four hours a week on tax records. Instead, enlist the aid of an outside bookkeeper. If you bill out your services at $50 an hour and can hire support help at half that, you can save $500 a month, easy.

* Pass on costs. Use a long-distance coding service such as AT&T's Call Organizer (800-566-2464) Punch in a code when you dial and your bills arrive subtotaled by client. Use your own project codes to keep track of incidental expenses that your clients will cover and, if you travel a lot, use a program such as Expensable from Intuit (800-816-8025; Win 95; $49.95) that will prompt you to include expenses you might forget. If you're in the habit of eating many of your own costs because it's easier than rebilling them, you can easily save $950 this year by calling in those chits.

* Haggle. If you're willing to ask, you can cut your credit-card rate and lose the monthly fee; reduce your long-distance rate by a good 10 percent a month; get credit from your suppliers, a quick pay discount from your vendors; and more. Annual savings just for asking: very conservatively, $125.

* Be a joiner. Many membership organizations for small businesses offer discounts on everything from groceries to graphic design. Check around to find out which package best suits you and save $250 a year on regular purchases: American can Home Business Association, 800-664-2422; American Association of Home-Based Businesses, 800-447-9710; Home-Based Working Moms, 512-918-0670; National Association for the Self-Employed, 800-232-6273; Support Services Alliance, 800-836-4772.

January total (annual savings earned in one month's actions): $7,325

FEBRUARY: Equipped for Savings

* Use winter sales to spiff up the office. You can shop for furniture, curtains, electronics, and more and expect to save 20 cents on the dollar. A complete redo will "save" you $1,400.

* Use remanufactured cartridges for your laser printer and save $200 a year.

* Those phone/fax/printer/copier/scanners, such as the Brother MFC-4550, our Editors' pick for best multifunction peripheral, keep getting better. You can save a cool $3,000 with an all-in-one (even if you still use a separate phone) and put the freed-up office and desktop space to better use.

* Buy a used or refurbished computer directly from a manufacturer's factory outlet or through a computer exchange. Here are some starting points: American Computer Exchange (800-786-0717, www.amcoex. com), Boston Computer Exchange (800-262-6399, www.bocoex.com), Compaq (800-318-6919, www.compaq.com com), Dell (800-847-4177), www.dell. com), Gateway 2000 (800-846-3614, www.gateway.com), IBM (800-426-7015, www.ibm.com), and United Computer Exchange (800-755-3033, www.uce. com). Jem Computers in Cambridge, Massachusetts, offers new and refurbished manufacturers' overstocks in its cyber bargain-basement (800-536-2037, www.jemcomputers.com). You can save $450 on a basic Pentium system and as much as $3,500 on a top-of-the-line Macintosh graphic arts setup.

* Order your computer through the mail. The state tax you save may more than make up for the shipping cost. For example, if you order a $5,000 laptop from a catalog, you pay $20 for overnight shipping, as opposed tO $250 in taxes if you buy it from a local dealer. Savings? $230.

* Purchase preowned office furniture and save. Aaron Rents Inc. (800-675-7368) offers used 30-by-60-inch executive desks for $169, $100 less than the price of a new one. Used executive chairs go for $119 each, another $I50 savings. February total: $8,580

MARCH: Phone Smarts

* Take advantage of Free Friday, an offer by Sprint (800-877-4020) tO small businesses. As long as you spend $50 a month, all domestic long-distance calls are free on Fridays. Annual savings: $600, if your monthly long-distance bill averages $200. Start making more of your calls on Fridays and ring up even greater returns.

* Bundle your phone services. Many phone companies charge $4 tO $5 a month for such common options as call waiting and call forwarding but will offer a 15 percent discount when you order two options and up to 35 percent if you sign up for five or more. Order a full menu and save $105 a year.

* Make long-distance calls through your computer. Internet Phone for Windows from VocalTec (201-768-9400, www.vocaltec.com; $49.95) allows you to call compatible computers via the Net. Give the software to your most active clients and save hundreds every year.