Set non-negotiable budgets for every area of the store.
Go through the list of expenditures you had last year and review how much you spent on each category. Now, using your good judgment, choose an arbitrary figure to use as this year’s budget. Tell everyone involved in purchasing that this dollar amount is all the money there is to spend. Period. We’d be willing to bet that each month you will be at, or under, budget.
Look at every dollar spent as unnecessary.
Take a hard look around your store. Do you have piles of unused supplies in your office? Are there boxes of overstock stacked in your bathroom? Did you really need that expensive piece of equipment you had to have but rarely use? Maybe you have an associate who just isn’t working out. Develop a cost-cutting mindset. When you cut down on all nonprofit- producing costs, you’ll have more money for productive expenditures.
Check all incoming invoices and statements carefully.
Hold yourself and your staff accountable for reimbursables. Insist on receipts for travel, samples, mileage, entertainment, and other miscellaneous expenses. Here’s another tip: Get into the habit of weighing the UPS packages that are delivered to your store. Check to see how much it would cost you to return the package to the sender, then review the invoice to make sure you were charged the correct amount.
If you own the store, personally sign each check.
If you can't personally sign every check, then you need to meet with the person who does. You'll want to review bills to be paid and checks to be sent. This review will help you uncover problem areas, unnecessary expenditures, and expenses that you may not have been aware of.
Don’t mix business and personal funds.
Mixing business and personal funds can lead to financial nightmares. Instead, make sure that you set up one account for your personal finances, and another for the business.
Little dollars can add up to big savings.
We saved a bundle when we opted not to renew the service contracts on some of our office equipment. Most came with one to three year warranties anyway, so even when they were out of warranty and needed servicing, it usually wasn’t enough to pay for the cost of the service contract. Likewise with subscriptions to magazines and newspapers you never have time to read, and memberships you renew just because they send you a bill.
Before you buy a big ticket item, ask for a test drive.
A tenacious copier salesperson, figuring we made thousands of copies of workbooks each month (he was right), tried to entice us to buy an expensive copy machine. “Think of the convenience!” he said. He just wouldn’t give up, so we asked if we could try one for a week. They delivered that machine two days before a presentation that required 400 10-page workbooks.
After a frustrating night of loading, unloading, and fixing paper jams, we decided we’d stick with Kinko’s. That test drive saved us a bundle in cash and stress.
Barter.
We have a colleague who barters for almost everything. He found barter to be the perfect solution to getting the things he needs without having to hand over his hard-earned cash. You can trade goods or services with any number of companies.
Google the word “barter,” and you’ll find thousands of opportunities. Or join the National Association of Trade Exchanges (NATE), the “premier organization for trade exchange owners from across the country and around the world.” Visit www.nate.org for more information.
Shop your associations.
The trade associations you belong to offer special member discounts on everything from freight management to overnight shipping, from car rental to color and trend forecasting, and more. Some even offer discounts on insurance.
Log on to the “members only” sections of the associations you belong to and see what you’ve been missing. CHA is a good example. Visit at http://www.craftandhobby.org/.
Don’t buy it when you can download it for free.
You can find all kinds of free forms that you can easily download, customize, and print while sitting at your own desk. Start at http://office.microsoft.com/templates and www.freebusinessforms.com . While you’re online, check out http://www.download.com/ to try all kinds of software products. You’ll find free trials, limited versions of the full product, and free software.
Adopt the Scarlett O’Hara approach.
Scarlett said, “I’ll think about it tomorrow.” Sometimes procrastination is a good thing, especially when you are facing a big purchase or decision and acting on impulse can get you into trouble. Sleep on it. If it still makes sense in the morning, go for it.
Go through the list of expenditures you had last year and review how much you spent on each category. Now, using your good judgment, choose an arbitrary figure to use as this year’s budget. Tell everyone involved in purchasing that this dollar amount is all the money there is to spend. Period. We’d be willing to bet that each month you will be at, or under, budget.
Look at every dollar spent as unnecessary.
Take a hard look around your store. Do you have piles of unused supplies in your office? Are there boxes of overstock stacked in your bathroom? Did you really need that expensive piece of equipment you had to have but rarely use? Maybe you have an associate who just isn’t working out. Develop a cost-cutting mindset. When you cut down on all nonprofit- producing costs, you’ll have more money for productive expenditures.
Check all incoming invoices and statements carefully.
Hold yourself and your staff accountable for reimbursables. Insist on receipts for travel, samples, mileage, entertainment, and other miscellaneous expenses. Here’s another tip: Get into the habit of weighing the UPS packages that are delivered to your store. Check to see how much it would cost you to return the package to the sender, then review the invoice to make sure you were charged the correct amount.
If you own the store, personally sign each check.
If you can't personally sign every check, then you need to meet with the person who does. You'll want to review bills to be paid and checks to be sent. This review will help you uncover problem areas, unnecessary expenditures, and expenses that you may not have been aware of.
Don’t mix business and personal funds.
Mixing business and personal funds can lead to financial nightmares. Instead, make sure that you set up one account for your personal finances, and another for the business.
Little dollars can add up to big savings.
We saved a bundle when we opted not to renew the service contracts on some of our office equipment. Most came with one to three year warranties anyway, so even when they were out of warranty and needed servicing, it usually wasn’t enough to pay for the cost of the service contract. Likewise with subscriptions to magazines and newspapers you never have time to read, and memberships you renew just because they send you a bill.
Before you buy a big ticket item, ask for a test drive.
A tenacious copier salesperson, figuring we made thousands of copies of workbooks each month (he was right), tried to entice us to buy an expensive copy machine. “Think of the convenience!” he said. He just wouldn’t give up, so we asked if we could try one for a week. They delivered that machine two days before a presentation that required 400 10-page workbooks.
After a frustrating night of loading, unloading, and fixing paper jams, we decided we’d stick with Kinko’s. That test drive saved us a bundle in cash and stress.
Barter.
We have a colleague who barters for almost everything. He found barter to be the perfect solution to getting the things he needs without having to hand over his hard-earned cash. You can trade goods or services with any number of companies.
Google the word “barter,” and you’ll find thousands of opportunities. Or join the National Association of Trade Exchanges (NATE), the “premier organization for trade exchange owners from across the country and around the world.” Visit www.nate.org for more information.
Shop your associations.
The trade associations you belong to offer special member discounts on everything from freight management to overnight shipping, from car rental to color and trend forecasting, and more. Some even offer discounts on insurance.
Log on to the “members only” sections of the associations you belong to and see what you’ve been missing. CHA is a good example. Visit at http://www.craftandhobby.org/.
Don’t buy it when you can download it for free.
You can find all kinds of free forms that you can easily download, customize, and print while sitting at your own desk. Start at http://office.microsoft.com/templates and www.freebusinessforms.com . While you’re online, check out http://www.download.com/ to try all kinds of software products. You’ll find free trials, limited versions of the full product, and free software.
Adopt the Scarlett O’Hara approach.
Scarlett said, “I’ll think about it tomorrow.” Sometimes procrastination is a good thing, especially when you are facing a big purchase or decision and acting on impulse can get you into trouble. Sleep on it. If it still makes sense in the morning, go for it.
