Seven Ways To Cut Costs in the Home Office

Bootstrapping is a way of life for many in the home-office setting. With no corporate chief financial officer (CFO) to pay for the tools and hardware needed to run the business, cutting costs—without cutting corners—can help stretch the balance sheet.

Between start-up and daily operations, launching and sustaining a small business can be a constant battle. Look for savings by looking at everyday items to nip and tuck. From procuring hardware to getting the best telephone services at the right price, slice fractions off existing bills and lower the monthly nut.

Here's a few other ideas:

1. Used-office-furniture stores or office-equipment leasing companies often have quality desks to sell at reduced prices; quality filing cabinets might be more difficult to find. Shop around for price and quality. Visit the local thrift or consignment shop and read the classified ads for sales, auctions and liquidations.

2. Know anyone in a business? Sometimes businesses preparing to upgrade their furniture would part with it cheaply.

3. No matter the savings, don't buy your chair used. A good—and reasonably priced—ergonomic chair can be found at the office superstore or even a warehouse club for less than $200. Your body—and health insurer—with thank you with reduced strain and fewer visits to the orthopedist or chiropractor.

4. Hit a local retailer to find out when they're going to replace their furnishings and displays, which often make good, sturdy office hardware (for bookshelves, storage areas and filing racks).

5. Monitor your use of long-distance calling, and invoice clients where appropriate (remember also to charge clients for the taxes related to the long-distance calls you made on their behalf). Call long-distance at off-peak times and enroll in long-distance-calling programs. Also remember that rates change frequently, so call the providers to get the best rate. Don't be afraid to switch, or to threaten to in order to secure a better deal.

6. Also monitor energy consumption. Track and cut waste. Use auto-setback thermostats and automatic light switches. Savings can be dramatic.

7. Don't order a "business" telephone or fax line for the home office. A residential telephone line can be one-fourth the cost of a "business" line and serve the same purpose. Also, call your phone company to see if you can bundle long-distance, cellular and even Internet access into one, less-expensive package. At the very least, you might be able to write one check at month's end—instead of three.

Jeff Zbar is the author of Home Office Know-How (Dearborn) and Your Profitable Home Business Made E-Z on CD-ROM (Made E-Z Products.) Contact Zbar at www.goinsoho.com.