How Small Businesses Waste Money

HOW DO SMALL BUSINESSES WASTE In this economy, every business is trying to make ends meet and cutting costs where they can. Small businesses, which have fewer resources, have to work even harder to avoid wasteful spending. MONEY NOT MAKING ENERGY EFFICIENT CHOICES: The most common way small businesses lose money is through using appliances and fixtures that are not energy efficient. Below are two examples of simple money saving choices: Not switching to fluorescent light bulbs can cause a small business to waste as much as $15 per kilowatt hour. Turning off desktop computers in the evening can annually save an office $30 a computer. Incandescent Bulbs Fluorescent Bulbs Money Wasted From Incandescent Bulbs: Money Saved From Turning Off Monitors At Night: 500 kwh 504.0 Annual Savings $71 300 kwh per desktop computer 100 kwh 33.6 200 Lumens 500 Lumens 850 Lumens Computer Idle Computer Off UNNECESSARY FOOD COSTS Constant lunching and trips to Starbucks takes a toll on your budget especially if you have the tendency to treat your employees. Cut down on those superfluous expenses by brown bagging it. Annual $3,000 Annual Savings Daily $2,080 per person $15 $1,500 $10- $5 $0 Combined Annual Savings Daily $3,000 Annual $2 $1.5 $1,200- Annual Savings per person $920 $1 per person C.50- $600 $0 *Home Brewed Price Derived from 1 Ib. Bag of Coffee Starbuc120z. MISSING 'DUE BY' DATES: Many small businesses don't have their own accounts payable department and because of that they often find it hard to keep up with due dates. Late fees are an expense that can be easily avoided. Percentage of Small Business owners that Finance their Business with Credit Cards Percent of Small Business owners paying off their credit card bill each month. 59% 16% 40% 2009 1993 Find their due dates change randomly: Miss their due date: Interest rate charged on business cards: 8% Less than 5% 48% 57% 31% 15% to 19% 13% - 5% to 9% 28% 20% or more 20% 10% to 14% With the new Credit Card Act, late fees can not exceed $25.00. However, Banks can charge up to 3% on top of regular interest rates when bills are delinquent. UNWISE CHOICES IN ADVERTISING AND MARKETING Online advertising is the fastest and most economical way to reach a large and diverse demographic of people. However, beware of the pay per click model of advertising. If used improperly if could end up being nothing but a waste of money. Ex: How To Waste Your Google AdWord Budget Budget: $20.00 Wasted from Budget: $5.80 29% Broad Keywords Neglecting negative keywords 10% 10% 6% Not excluding poor-performing websites Always bidding for top position Cost Per Thousand Impressions 2$ 35 Advertising ROI 25 When deciding what form your advertising campaign may take remember to carefully consider the rate of investment. In many cases print is the most costly with the lowest rate of return. 15 5 NOT SWEATING THE SMALL COSTS: Us .10c here and .20¢ there, may seem insignificant but they can add up in the long run. For a small business owner in this economy it is crucial to stay on top of where the money is going and the everyday mistakes that can cause them to balloon. Ex: Postage Inaccuracies: 5 oz envelope: $ 1.69 Loss of: .10¢ US postage stamp 44¢ Weekly: $3.00 US 30 envelopes Annually: $156.00 In this case, it would be smarter for the small business owner to purchase a postage machine to get accurate postage and not stamps which are more costly in the end. SETTLING FOR THE ADVERTISED RATE 6. It is a misconception that shipping discounts are only for mega businesses. FedEx, UPS and DHL offer surprising discounts for many small businesses in exchange for their loyal repeat business. 4.5lb Package Using International Shipping Ex: UPS Discounts: If your small business makes 1,300 international and domestic shipments that would be an approximate annual bill of $20,000. 80 $80 Şavings $16.00 =1,000 Packages 60 Per Package $64 40 Annual Bill: 20- $20,000 Without Discount With Discount Contact he Sources: Credit Cards.com, GreenPoma.com, Brighthub.com, 2009 Business Card Survey, Starbucks, Google AdWords Calculator, "20 Minutes to Lower Shipping Rates from UPS, FedEx, and DHL" by Alec Jones $8 $2 $13 $20 $12 Deli Lunch $1.75 Bag Lumce Z0pnqueis $.45 Tall 008'z$ Brewed 120 Deli Lunch $720 $1,250 Bag Lunch pucks Tall $330 Home Brewed 1202 PRINT ONLINE HOW DO SMALL BUSINESSES WASTE In this economy, every business is trying to make ends meet and cutting costs where they can. Small businesses, which have fewer resources, have to work even harder to avoid wasteful spending. MONEY NOT MAKING ENERGY EFFICIENT CHOICES: The most common way small businesses lose money is through using appliances and fixtures that are not energy efficient. Below are two examples of simple money saving choices: Not switching to fluorescent light bulbs can cause a small business to waste as much as $15 per kilowatt hour. Turning off desktop computers in the evening can annually save an office $30 a computer. Incandescent Bulbs Fluorescent Bulbs Money Wasted From Incandescent Bulbs: Money Saved From Turning Off Monitors At Night: 500 kwh 504.0 Annual Savings $71 300 kwh per desktop computer 25 100 kwh 33.6 200 Lumens 500 Lumens 850 Lumens Computer Idle Computer Off UNNECESSARY FOOD COSTS Constant lunching and trips to Starbucks takes a toll on your budget especially if you have the tendency to treat your employees. Cut down on those superfluous expenses by brown bagging it. Annual $3,000 Annual Savings Daily $2,080 per person $15 $1,500 $10- $5 $0 Combined Annual Savings Daily $3,000 Annual $2 $1.5 $1,200- Annual Savings per person $920 $1 per person C.50- $600 $0 *Home Brewed Price Derived from 1 Ib. Bag of Coffee Starbuc120z. MISSING 'DUE BY' DATES: Many small businesses don't have their own accounts payable department and because of that they often find it hard to keep up with due dates. Late fees are an expense that can be easily avoided. Percentage of Small Business owners that Finance their Business with Credit Cards Percent of Small Business owners paying off their credit card bill each month. 59% 16% 40% 2009 1993 Find their due dates change randomly: Miss their due date: Interest rate charged on business cards: 8% Less than 5% 48% 57% 31% 15% to 19% 13% - 5% to 9% 28% 20% or more 20% 10% to 14% With the new Credit Card Act, late fees can not exceed $25.00. However, Banks can charge up to 3% on top of regular interest rates when bills are delinquent. UNWISE CHOICES IN ADVERTISING AND MARKETING 4 Online advertising is the fastest and most economical way to reach a large and diverse demographic of people. However, beware of the pay per click model of advertising. If used improperly if could end up being nothing but a waste of money. Ex: How To Waste Your Google AdWord Budget Budget: $20.00 Wasted from Budget: $5.80 29% Broad Keywords Neglecting negative keywords 10% 3% 10% 6% Not excluding poor-performing websites Always bidding for top position Cost Per Thousand Impressions 2$ 35 Advertising ROI 25 When deciding what form your advertising campaign may take remember to carefully consider the rate of investment. In many cases print is the most costly with the lowest rate of return. 15 5 NOT SWEATING THE SMALL COSTS: Us .10c here and .20¢ there, may seem insignificant but they can add up in the long run. For a small business owner in this economy it is crucial to stay on top of where the money is going and the everyday mistakes that can cause them to balloon. Ex: Postage Inaccuracies: 5 oz envelope: $ 1.69 Loss of: .10¢ US postage stamp 44¢ Weekly: $3.00 US 30 envelopes Annually: $156.00 In this case, it would be smarter for the small business owner to purchase a postage machine to get accurate postage and not stamps which are more costly in the end. SETTLING FOR THE ADVERTISED RATE 6. It is a misconception that shipping discounts are only for mega businesses. FedEx, UPS and DHL offer surprising discounts for many small businesses in exchange for their loyal repeat business. 4.5lb Package Using International Shipping Ex: UPS Discounts: If your small business makes 1,300 international and domestic shipments that would be an approximate annual bill of $20,000. $80 Şavings $16.00 =1,000 Packages 60 Per Package $64 40 Annual Bill: 20- $20,000 Without Discount With Discount Contact he Sources: Credit Cards.com, GreenPoma.com, Brighthub.com, 2009 Business Card Survey, Starbucks, Google AdWords Calculator, "20 Minutes to Lower Shipping Rates from UPS, FedEx, and DHL" by Alec Jones $8 $2 $13 $20 $12 Deli Lunch $1.75 Bag Lumce Tall 008'z$ $.45 Brewed 120 Deli Lunch $720 $1,250 Bag Lunch pucks Tall $330 Home Brewed 1202 PRINT ONLINE HOW DO SMALL BUSINESSES WASTE In this economy, every business is trying to make ends meet and cutting costs where they can. Small businesses, which have fewer resources, have to work even harder to avoid wasteful spending. MONEY NOT MAKING ENERGY EFFICIENT CHOICES: The most common way small businesses lose money is through using appliances and fixtures that are not energy efficient. Below are two examples of simple money saving choices: Not switching to fluorescent light bulbs can cause a small business to waste as much as $15 per kilowatt hour. Turning off desktop computers in the evening can annually save an office $30 a computer. Incandescent Bulbs Fluorescent Bulbs Money Wasted From Incandescent Bulbs: Money Saved From Turning Off Monitors At Night: 500 kwh 504.0 Annual Savings $71 300 kwh per desktop computer 25 100 kwh 33.6 200 Lumens 500 Lumens 850 Lumens Computer Idle Computer Off UNNECESSARY FOOD COSTS Constant lunching and trips to Starbucks takes a toll on your budget especially if you have the tendency to treat your employees. Cut down on those superfluous expenses by brown bagging it. Annual $3,000 Annual Savings Daily $2,080 per person $15 $1,500 $10- $5 $0 Combined Annual Savings Daily $3,000 Annual $2 $1.5 $1,200- Annual Savings per person $920 $1 per person C.50- $600 $0 *Home Brewed Price Derived from 1 Ib. Bag of Coffee Starbuc120z. MISSING 'DUE BY' DATES: Many small businesses don't have their own accounts payable department and because of that they often find it hard to keep up with due dates. Late fees are an expense that can be easily avoided. Percentage of Small Business owners that Finance their Business with Credit Cards Percent of Small Business owners paying off their credit card bill each month. 59% 16% 40% 2009 1993 Find their due dates change randomly: Miss their due date: Interest rate charged on business cards: 8% Less than 5% 48% 57% 31% 15% to 19% 13% - 5% to 9% 28% 20% or more 20% 10% to 14% With the new Credit Card Act, late fees can not exceed $25.00. However, Banks can charge up to 3% on top of regular interest rates when bills are delinquent. UNWISE CHOICES IN ADVERTISING AND MARKETING 4 Online advertising is the fastest and most economical way to reach a large and diverse demographic of people. However, beware of the pay per click model of advertising. If used improperly if could end up being nothing but a waste of money. Ex: How To Waste Your Google AdWord Budget Budget: $20.00 Wasted from Budget: $5.80 29% Broad Keywords Neglecting negative keywords 10% 3% 10% 6% Not excluding poor-performing websites Always bidding for top position Cost Per Thousand Impressions 2$ 35 Advertising ROI 25 When deciding what form your advertising campaign may take remember to carefully consider the rate of investment. In many cases print is the most costly with the lowest rate of return. 15 5 NOT SWEATING THE SMALL COSTS: Us .10c here and .20¢ there, may seem insignificant but they can add up in the long run. For a small business owner in this economy it is crucial to stay on top of where the money is going and the everyday mistakes that can cause them to balloon. Ex: Postage Inaccuracies: 5 oz envelope: $ 1.69 Loss of: .10¢ US postage stamp 44¢ Weekly: $3.00 US 30 envelopes Annually: $156.00 In this case, it would be smarter for the small business owner to purchase a postage machine to get accurate postage and not stamps which are more costly in the end. SETTLING FOR THE ADVERTISED RATE 6. It is a misconception that shipping discounts are only for mega businesses. FedEx, UPS and DHL offer surprising discounts for many small businesses in exchange for their loyal repeat business. 4.5lb Package Using International Shipping Ex: UPS Discounts: If your small business makes 1,300 international and domestic shipments that would be an approximate annual bill of $20,000. $80 Şavings $16.00 =1,000 Packages 60 Per Package $64 40 Annual Bill: 20- $20,000 Without Discount With Discount Contact he Sources: Credit Cards.com, GreenPoma.com, Brighthub.com, 2009 Business Card Survey, Starbucks, Google AdWords Calculator, "20 Minutes to Lower Shipping Rates from UPS, FedEx, and DHL" by Alec Jones $8 $2 $13 $20 $12 Deli Lunch $1.75 Bag Lumce Tall 008'z$ $.45 Brewed 120 Deli Lunch $720 $1,250 Bag Lunch pucks Tall $330 Home Brewed 1202 PRINT ONLINE HOW DO SMALL BUSINESSES WASTE In this economy, every business is trying to make ends meet and cutting costs where they can. Small businesses, which have fewer resources, have to work even harder to avoid wasteful spending. MONEY NOT MAKING ENERGY EFFICIENT CHOICES: The most common way small businesses lose money is through using appliances and fixtures that are not energy efficient. Below are two examples of simple money saving choices: Not switching to fluorescent light bulbs can cause a small business to waste as much as $15 per kilowatt hour. Turning off desktop computers in the evening can annually save an office $30 a computer. Incandescent Bulbs Fluorescent Bulbs Money Wasted From Incandescent Bulbs: Money Saved From Turning Off Monitors At Night: 500 kwh 504.0 Annual Savings $71 300 kwh per desktop computer 25 100 kwh 33.6 200 Lumens 500 Lumens 850 Lumens Computer Idle Computer Off UNNECESSARY FOOD COSTS Constant lunching and trips to Starbucks takes a toll on your budget especially if you have the tendency to treat your employees. Cut down on those superfluous expenses by brown bagging it. Annual $3,000 Annual Savings Daily $2,080 per person $15 $1,500 $10- $5 $0 Combined Annual Savings Daily $3,000 Annual $2 $1.5 $1,200- Annual Savings per person $920 $1 per person C.50- $600 $0 *Home Brewed Price Derived from 1 Ib. Bag of Coffee Starbuc120z. MISSING 'DUE BY' DATES: Many small businesses don't have their own accounts payable department and because of that they often find it hard to keep up with due dates. Late fees are an expense that can be easily avoided. Percentage of Small Business owners that Finance their Business with Credit Cards Percent of Small Business owners paying off their credit card bill each month. 59% 16% 40% 2009 1993 Find their due dates change randomly: Miss their due date: Interest rate charged on business cards: 8% Less than 5% 48% 57% 31% 15% to 19% 13% - 5% to 9% 28% 20% or more 20% 10% to 14% With the new Credit Card Act, late fees can not exceed $25.00. However, Banks can charge up to 3% on top of regular interest rates when bills are delinquent. UNWISE CHOICES IN ADVERTISING AND MARKETING 4 Online advertising is the fastest and most economical way to reach a large and diverse demographic of people. However, beware of the pay per click model of advertising. If used improperly if could end up being nothing but a waste of money. Ex: How To Waste Your Google AdWord Budget Budget: $20.00 Wasted from Budget: $5.80 29% Broad Keywords Neglecting negative keywords 10% 3% 10% 6% Not excluding poor-performing websites Always bidding for top position Cost Per Thousand Impressions 2$ 35 Advertising ROI 25 When deciding what form your advertising campaign may take remember to carefully consider the rate of investment. In many cases print is the most costly with the lowest rate of return. 15 5 NOT SWEATING THE SMALL COSTS: Us .10c here and .20¢ there, may seem insignificant but they can add up in the long run. For a small business owner in this economy it is crucial to stay on top of where the money is going and the everyday mistakes that can cause them to balloon. Ex: Postage Inaccuracies: 5 oz envelope: $ 1.69 Loss of: .10¢ US postage stamp 44¢ Weekly: $3.00 US 30 envelopes Annually: $156.00 In this case, it would be smarter for the small business owner to purchase a postage machine to get accurate postage and not stamps which are more costly in the end. SETTLING FOR THE ADVERTISED RATE 6. It is a misconception that shipping discounts are only for mega businesses. FedEx, UPS and DHL offer surprising discounts for many small businesses in exchange for their loyal repeat business. 4.5lb Package Using International Shipping Ex: UPS Discounts: If your small business makes 1,300 international and domestic shipments that would be an approximate annual bill of $20,000. $80 Şavings $16.00 =1,000 Packages 60 Per Package $64 40 Annual Bill: 20- $20,000 Without Discount With Discount Contact he Sources: Credit Cards.com, GreenPoma.com, Brighthub.com, 2009 Business Card Survey, Starbucks, Google AdWords Calculator, "20 Minutes to Lower Shipping Rates from UPS, FedEx, and DHL" by Alec Jones $8 $2 $13 $20 $12 Deli Lunch $1.75 Bag Lumce Tall 008'z$ $.45 Brewed 120 Deli Lunch $720 $1,250 Bag Lunch pucks Tall $330 Home Brewed 1202 PRINT ONLINE HOW DO SMALL BUSINESSES WASTE In this economy, every business is trying to make ends meet and cutting costs where they can. Small businesses, which have fewer resources, have to work even harder to avoid wasteful spending. MONEY NOT MAKING ENERGY EFFICIENT CHOICES: The most common way small businesses lose money is through using appliances and fixtures that are not energy efficient. Below are two examples of simple money saving choices: Not switching to fluorescent light bulbs can cause a small business to waste as much as $15 per kilowatt hour. Turning off desktop computers in the evening can annually save an office $30 a computer. Incandescent Bulbs Fluorescent Bulbs Money Wasted From Incandescent Bulbs: Money Saved From Turning Off Monitors At Night: 500 kwh 504.0 Annual Savings $71 300 kwh per desktop computer 25 100 kwh 33.6 200 Lumens 500 Lumens 850 Lumens Computer Idle Computer Off UNNECESSARY FOOD COSTS Constant lunching and trips to Starbucks takes a toll on your budget especially if you have the tendency to treat your employees. Cut down on those superfluous expenses by brown bagging it. Annual $3,000 Annual Savings Daily $2,080 per person $15 $1,500 $10- $5 $0 Combined Annual Savings Daily $3,000 Annual $2 $1.5 $1,200- Annual Savings per person $920 $1 per person C.50- $600 $0 *Home Brewed Price Derived from 1 Ib. Bag of Coffee Starbuc120z. MISSING 'DUE BY' DATES: Many small businesses don't have their own accounts payable department and because of that they often find it hard to keep up with due dates. Late fees are an expense that can be easily avoided. Percentage of Small Business owners that Finance their Business with Credit Cards Percent of Small Business owners paying off their credit card bill each month. 59% 16% 40% 2009 1993 Find their due dates change randomly: Miss their due date: Interest rate charged on business cards: 8% Less than 5% 48% 57% 31% 15% to 19% 13% - 5% to 9% 28% 20% or more 20% 10% to 14% With the new Credit Card Act, late fees can not exceed $25.00. However, Banks can charge up to 3% on top of regular interest rates when bills are delinquent. UNWISE CHOICES IN ADVERTISING AND MARKETING 4 Online advertising is the fastest and most economical way to reach a large and diverse demographic of people. However, beware of the pay per click model of advertising. If used improperly if could end up being nothing but a waste of money. Ex: How To Waste Your Google AdWord Budget Budget: $20.00 Wasted from Budget: $5.80 29% Broad Keywords Neglecting negative keywords 10% 3% 10% 6% Not excluding poor-performing websites Always bidding for top position Cost Per Thousand Impressions 2$ 35 Advertising ROI 25 When deciding what form your advertising campaign may take remember to carefully consider the rate of investment. In many cases print is the most costly with the lowest rate of return. 15 5 NOT SWEATING THE SMALL COSTS: Us .10c here and .20¢ there, may seem insignificant but they can add up in the long run. For a small business owner in this economy it is crucial to stay on top of where the money is going and the everyday mistakes that can cause them to balloon. Ex: Postage Inaccuracies: 5 oz envelope: $ 1.69 Loss of: .10¢ US postage stamp 44¢ Weekly: $3.00 US 30 envelopes Annually: $156.00 In this case, it would be smarter for the small business owner to purchase a postage machine to get accurate postage and not stamps which are more costly in the end. SETTLING FOR THE ADVERTISED RATE 6. It is a misconception that shipping discounts are only for mega businesses. FedEx, UPS and DHL offer surprising discounts for many small businesses in exchange for their loyal repeat business. 4.5lb Package Using International Shipping Ex: UPS Discounts: If your small business makes 1,300 international and domestic shipments that would be an approximate annual bill of $20,000. $80 Şavings $16.00 =1,000 Packages 60 Per Package $64 40 Annual Bill: 20- $20,000 Without Discount With Discount Contact he Sources: Credit Cards.com, GreenPoma.com, Brighthub.com, 2009 Business Card Survey, Starbucks, Google AdWords Calculator, "20 Minutes to Lower Shipping Rates from UPS, FedEx, and DHL" by Alec Jones $8 $2 $13 $20 $12 Deli Lunch $1.75 Bag Lumce Tall 008'z$ $.45 Brewed 120 Deli Lunch $720 $1,250 Bag Lunch pucks Tall $330 Home Brewed 1202 PRINT ONLINE HOW DO SMALL BUSINESSES WASTE In this economy, every business is trying to make ends meet and cutting costs where they can. Small businesses, which have fewer resources, have to work even harder to avoid wasteful spending. MONEY NOT MAKING ENERGY EFFICIENT CHOICES: The most common way small businesses lose money is through using appliances and fixtures that are not energy efficient. Below are two examples of simple money saving choices: Not switching to fluorescent light bulbs can cause a small business to waste as much as $15 per kilowatt hour. Turning off desktop computers in the evening can annually save an office $30 a computer. Incandescent Bulbs Fluorescent Bulbs Money Wasted From Incandescent Bulbs: Money Saved From Turning Off Monitors At Night: 500 kwh 504.0 Annual Savings $71 300 kwh per desktop computer 25 100 kwh 33.6 200 Lumens 500 Lumens 850 Lumens Computer Idle Computer Off UNNECESSARY FOOD COSTS Constant lunching and trips to Starbucks takes a toll on your budget especially if you have the tendency to treat your employees. Cut down on those superfluous expenses by brown bagging it. Annual $3,000 Annual Savings Daily $2,080 per person $15 $1,500 $10- $5 $0 Combined Annual Savings Daily $3,000 Annual $2 $1.5 $1,200- Annual Savings per person $920 $1 per person C.50- $600 $0 *Home Brewed Price Derived from 1 Ib. Bag of Coffee Starbuc120z. MISSING 'DUE BY' DATES: Many small businesses don't have their own accounts payable department and because of that they often find it hard to keep up with due dates. Late fees are an expense that can be easily avoided. Percentage of Small Business owners that Finance their Business with Credit Cards Percent of Small Business owners paying off their credit card bill each month. 59% 16% 40% 2009 1993 Find their due dates change randomly: Miss their due date: Interest rate charged on business cards: 8% Less than 5% 48% 57% 31% 15% to 19% 13% - 5% to 9% 28% 20% or more 20% 10% to 14% With the new Credit Card Act, late fees can not exceed $25.00. However, Banks can charge up to 3% on top of regular interest rates when bills are delinquent. UNWISE CHOICES IN ADVERTISING AND MARKETING 4 Online advertising is the fastest and most economical way to reach a large and diverse demographic of people. However, beware of the pay per click model of advertising. If used improperly if could end up being nothing but a waste of money. Ex: How To Waste Your Google AdWord Budget Budget: $20.00 Wasted from Budget: $5.80 29% Broad Keywords Neglecting negative keywords 10% 3% 10% 6% Not excluding poor-performing websites Always bidding for top position Cost Per Thousand Impressions 2$ 35 Advertising ROI 25 When deciding what form your advertising campaign may take remember to carefully consider the rate of investment. In many cases print is the most costly with the lowest rate of return. 15 5 NOT SWEATING THE SMALL COSTS: Us .10c here and .20¢ there, may seem insignificant but they can add up in the long run. For a small business owner in this economy it is crucial to stay on top of where the money is going and the everyday mistakes that can cause them to balloon. Ex: Postage Inaccuracies: 5 oz envelope: $ 1.69 Loss of: .10¢ US postage stamp 44¢ Weekly: $3.00 US 30 envelopes Annually: $156.00 In this case, it would be smarter for the small business owner to purchase a postage machine to get accurate postage and not stamps which are more costly in the end. SETTLING FOR THE ADVERTISED RATE 6. It is a misconception that shipping discounts are only for mega businesses. FedEx, UPS and DHL offer surprising discounts for many small businesses in exchange for their loyal repeat business. 4.5lb Package Using International Shipping Ex: UPS Discounts: If your small business makes 1,300 international and domestic shipments that would be an approximate annual bill of $20,000. $80 Şavings $16.00 =1,000 Packages 60 Per Package $64 40 Annual Bill: 20- $20,000 Without Discount With Discount Contact he Sources: Credit Cards.com, GreenPoma.com, Brighthub.com, 2009 Business Card Survey, Starbucks, Google AdWords Calculator, "20 Minutes to Lower Shipping Rates from UPS, FedEx, and DHL" by Alec Jones $8 $2 $13 $20 $12 Deli Lunch $1.75 Bag Lumce Tall 008'z$ $.45 Brewed 120 Deli Lunch $720 $1,250 Bag Lunch pucks Tall $330 Home Brewed 1202 PRINT ONLINE HOW DO SMALL BUSINESSES WASTE In this economy, every business is trying to make ends meet and cutting costs where they can. Small businesses, which have fewer resources, have to work even harder to avoid wasteful spending. MONEY NOT MAKING ENERGY EFFICIENT CHOICES: The most common way small businesses lose money is through using appliances and fixtures that are not energy efficient. Below are two examples of simple money saving choices: Not switching to fluorescent light bulbs can cause a small business to waste as much as $15 per kilowatt hour. Turning off desktop computers in the evening can annually save an office $30 a computer. Incandescent Bulbs Fluorescent Bulbs Money Wasted From Incandescent Bulbs: Money Saved From Turning Off Monitors At Night: 500 kwh 504.0 Annual Savings $71 300 kwh per desktop computer 25 100 kwh 33.6 200 Lumens 500 Lumens 850 Lumens Computer Idle Computer Off UNNECESSARY FOOD COSTS Constant lunching and trips to Starbucks takes a toll on your budget especially if you have the tendency to treat your employees. Cut down on those superfluous expenses by brown bagging it. Annual $3,000 Annual Savings Daily $2,080 per person $15 $1,500 $10- $5 $0 Combined Annual Savings Daily $3,000 Annual $2 $1.5 $1,200- Annual Savings per person $920 $1 per person C.50- $600 $0 *Home Brewed Price Derived from 1 Ib. Bag of Coffee Starbuc120z. MISSING 'DUE BY' DATES: Many small businesses don't have their own accounts payable department and because of that they often find it hard to keep up with due dates. Late fees are an expense that can be easily avoided. Percentage of Small Business owners that Finance their Business with Credit Cards Percent of Small Business owners paying off their credit card bill each month. 59% 16% 40% 2009 1993 Find their due dates change randomly: Miss their due date: Interest rate charged on business cards: 8% Less than 5% 48% 57% 31% 15% to 19% 13% - 5% to 9% 28% 20% or more 20% 10% to 14% With the new Credit Card Act, late fees can not exceed $25.00. However, Banks can charge up to 3% on top of regular interest rates when bills are delinquent. UNWISE CHOICES IN ADVERTISING AND MARKETING 4 Online advertising is the fastest and most economical way to reach a large and diverse demographic of people. However, beware of the pay per click model of advertising. If used improperly if could end up being nothing but a waste of money. Ex: How To Waste Your Google AdWord Budget Budget: $20.00 Wasted from Budget: $5.80 29% Broad Keywords Neglecting negative keywords 10% 3% 10% 6% Not excluding poor-performing websites Always bidding for top position Cost Per Thousand Impressions 2$ 35 Advertising ROI 25 When deciding what form your advertising campaign may take remember to carefully consider the rate of investment. In many cases print is the most costly with the lowest rate of return. 15 5 NOT SWEATING THE SMALL COSTS: Us .10c here and .20¢ there, may seem insignificant but they can add up in the long run. For a small business owner in this economy it is crucial to stay on top of where the money is going and the everyday mistakes that can cause them to balloon. Ex: Postage Inaccuracies: 5 oz envelope: $ 1.69 Loss of: .10¢ US postage stamp 44¢ Weekly: $3.00 US 30 envelopes Annually: $156.00 In this case, it would be smarter for the small business owner to purchase a postage machine to get accurate postage and not stamps which are more costly in the end. SETTLING FOR THE ADVERTISED RATE 6. It is a misconception that shipping discounts are only for mega businesses. FedEx, UPS and DHL offer surprising discounts for many small businesses in exchange for their loyal repeat business. 4.5lb Package Using International Shipping Ex: UPS Discounts: If your small business makes 1,300 international and domestic shipments that would be an approximate annual bill of $20,000. $80 Şavings $16.00 =1,000 Packages 60 Per Package $64 40 Annual Bill: 20- $20,000 Without Discount With Discount Contact he Sources: Credit Cards.com, GreenPoma.com, Brighthub.com, 2009 Business Card Survey, Starbucks, Google AdWords Calculator, "20 Minutes to Lower Shipping Rates from UPS, FedEx, and DHL" by Alec Jones $8 $2 $13 $20 $12 Deli Lunch $1.75 Bag Lumce Tall 008'z$ $.45 Brewed 120 Deli Lunch $720 $1,250 Bag Lunch pucks Tall $330 Home Brewed 1202 PRINT ONLINE