Money Saving Secrets

Entrepreneurs' Best Money-Saving Secrets
By CHARLOTTE JENSEN, AOL SMALL BUSINESS

Even before belt-tightening became de rigueur, entrepreneurs were building businesses while quietly finding ways to cut costs. So who better to ask in a recession for their smartest, savviest cost-cutting tips? Here are 17 creative, easy and unexpected ways entrepreneurs are slashing hundreds -- and sometimes even thousands -- of dollars from their budgets.

1. When business travel is a must, optimize it. "Drive where possible, use travel as an opportunity to pack in as many meetings as possible, buy your hotels on Priceline, use last-minute flight discounts or take connectors to lower airfare."
-- Aynsley Deluce, partner, Parkingspots.com

2. Examine your balance sheet carefully. "By carefully looking beyond the totals to the details, we cut out $30,000 of expenses without any pain. We cut $10,000 in unnecessary bank fees, $1,800 in paper cups and plates, and $350 in credit card annual fees."
-- Julie Sue Auslander, president, cSubs

3. Think ahead. "We conduct a weekly shipping supplies inventory checklist to track usage. That lets us place larger shipping supply orders about every six to eight weeks, and we save about $1,000/year in freight costs compared to when we placed orders every two to four weeks."
-- Eric Mindel, director, PeppyParents.com Inc.

4. Question everything. "Never, ever be afraid to get four to five different opinions, estimates, thoughts, etc. In my business, I learned a long time ago no price is the final price, so when searching for products or suppliers, I have always asked, 'Can you do better on the price?' I've saved thousands of dollars across the board just by asking."
-- Christian Beebe, owner/founder, Worldwide Graphics & Sign Co.

5. Put an end to unnecessary upgrades. "Technolust can be very expensive--speaking from experience. As long as our existing technology equipment is adequate, we make do. This is a recent change for Geektime and has saved us over $20,000 annually for the last two years."
-- Alexander E. Fowler, president and senior consultant, Geektime Design Studios

6. Give e-learning a try. "For a couple hundred bucks, or sometimes no money at all, we can get schooled on new techniques without leaving our desks for professional development. We saved thousands last year."
-- Colleen Troy, owner, Touchpoint Communications

7. Team up for big savings. "We have substantially cut down on our overhead costs by office sharing with a structural engineering firm that has, like everyone else, had to cut down on staff. It is a win-win for both of us. We get the benefits of a large, fully functioning office, and they get income. We are also co-marketing on several projects since our firms' work is synergistic."
-- Virginia McAllister, principal, Iron Horse Architects

8. Get your green on. "Reduce paper consumption -- it is both green and economical. By changing what we print, we were able to reduce our consumption of paper by 90 percent. That translated to several hundreds dollars a year."
-- Orit Pennington, owner/CFO, TPGTEX Label Solutions Inc.

9. Give new life to items you would otherwise discard. "We save money by using pre-used boxes, newspapers and other scraps for all our packaging."
-- Adrien Edwards, co-founder, TheNakedHippie

10. Hire a college intern. "They will work for experience, are excited to be a part of a startup and will provide insight into their demographic. Give them the opportunity to own their work and see how quickly your company will grow as a result and for nothing more than time, appreciation and a killer recommendation."
-- Colleen Leader, owner, Loose Thread Stitchers

11. Shop around to secure the best deals. "I have begun to use different sites for any travel we do. For example, in the past I might call Avis directly to rent a car. Nowadays I go on RentACarNow.com, which is a marketplace of all vendors, and compare rates. This way I find the cheapest rate for my travel. I also use Hotels.com for hotel booking. It's incredible how much I have saved -- over 40 percent on my travel budget for the year. No longer can we rely on one vendor."
-- Robert Tuchman, founder, TSE Sports & Entertainment

12. Try an alternative compensation structure. "Hire commission-only sales reps and consider giving a sizable commission -- [it's] still cheaper than paying a salary."
-- Bradi Nathan, co-founder, MyWorkButterfly.com

13. Volunteer. "In addition to helping a great cause and gaining a personal sense of fulfillment, you often have the opportunity to meet/network with people who may have an important impact on your business -- including successful business leaders, angel investors, political leaders and members of the media -- that you would likely not have had access to in any other venue, regardless of how much you spend on marketing and PR."
-- Sarah M. Place, CEO, Place Trade Financial

14. Find cheaper ways to network. "A luncheon can easily cost $30 to $45, but you might get away with $5 to $10 to attend a happy hour. You can meet just as many people, if not more, when attending a cheaper event."
-- Ansley Meredith, owner, ENERGIZED Media Relations

15. Create buzz (for free) with social media. "We have developed a loyal following on Twitter and Facebook and have seen traffic to our website continue to grow. We've learned that directly connecting with people in their preferred mode of social communication not only enhances our valuable customer relationships, it doesn't cost a penny."
-- Jeff Avallon, co-founder, IdeaPaint

16. When possible, work virtually. "Maintaining a home office eliminates the costs associated with having office space."
-- Adil Lalani, founder and CTO, TwitVid

17. Keep employees happy (read: prevent turnover). "The costs [associated with] being a person short, running ads, time spent interviewing and the downtime while someone gets trained are huge. And then there are the indirect costs -- a dip in client confidence, burned-out staff because they're picking up the extra load and potential loss of clients. It all adds up to a huge number--a number most small businesses cannot afford to pay." -- Drew McLellan, president, McLellan Marketing Group