Who wants to save money… wisely?

Lowering expenses, saving money, reducing costs. Those are magical words in the ears of business owners and entrepreneurs! Who among us doesn’t want to cut back a bit on our spending and see our profit rise a bit as a result!?!

I think saving money is an art more than it’s a science. I say this because I see lots of businesses trying to save money on the wrong things. Sure, the dollars make sense but there are other factors to consider! One example I see this in is marketing: Lots of businesses will hire low-cost marketers who may not be fully qualified to do the work, but they hire them instead of a more qualified person who costs more. Consider, however, that the more qualified marketer can create returns that not just higher but proportionally higher than the under-qualified marketer. (Clarification: I’m not a marketer so it doesn’t matter to me what you do, but that’s just an observation I’ve made).

So, how can you save money wisely? I don’t think we can simply ask the question “Can I get the same thing for a lower price?” even though that’s often the question asked. Instead, I think we need to ask the question “Can I get the same results for a lower price?”

That’s a big difference. To use the marketing example: The answer is “Yes” to the first question but (in my opinion) a resounding “No” to the second question.

Other considerations need to be made, too: For example, which of your choices is going to scale with your business as it grows? It may be that neither your more expensive or your cheaper option will scale appropriately and you need to find a third alternative. And consider the non-dollar cost to you in terms of time and effort: Lots of entrepreneurs accept a lower-cost solution which requires them to do more of the work. That’s not necessarily a bad thing if you have the time but you need to make sure if you have the time!

I’ve started to collect some money-saving ideas here. Not all of these ideas will be right for your situation, but they may give you some ideas to start. Check them out and if you have your own great money-saving ideas, feel free to add them to the comments.

How to Cut Costs In Business
Five Tips for Beating Inflation
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10 Easy Ways to Save Money In your Business
Cut Costs Without Cutting Muscle and Brain

Jessica Routier, IAC-EZ