We know times are tough. Whether it’s switching to a cell phone or having to lay off full-time employees, most business owners have had to take drastic measures to survive the lingering recession.
BusinessNewsDaily asked small business owners to tell us what cost-cutting measures they've taken.
After a 44 percent increase in health insurance premiums, the company instituted an extensive employee wellness program. Thanks to the wellness initiatives, the company has saved an estimated $440,000 in health insurance premiums for employees over the last four years and seen an average ROI of $1.60 for every dollar spent on wellness initiatives.
-- John Dickson, Redstone Highlands (senior living facility) www.redstonehighlands.org
Being a start-up is very difficult, especially since we decided to take no outside funding for our company. We did, as a result, have to do a number of things to save money. For one thing, we only bought used furniture for the office, which definitely saved us money. The same goes for the rest of the appliances in the office. We also use our own computers in the office, as opposed to buying new ones.
-- Zach Halper, MetroFlats.com
I only have a part-time baker and myself, but I do insist on paying cash for everything.
-- Mike "Top Banana" Lawrence, Laurel, Md., Havana Banana Breads
As a barter exchange, we have seen an increase in new member businesses due to the recession. Instead of cutting back or cutting out, businesses are changing vendors. They are trading their excess time or product for things they need. So instead of using cash, they are bartering and using barter exchanges to help.
-- Catherine Cohen, Phoenix, Ariz., bclsoft.com
We decreased our shipping subsidies for customers. As a strictly mail-order business, these shipping incentives were costing us thousands of dollars each month. Shipping is expensive and we could no longer foot the bill on freight services without inflating product costs. We lost very few accounts as a result and revitalized cash flow as soon as we implemented the change.
-- Hilary Scott, Prescott, Ariz., HalsteadBead.com
Surprisingly, we haven't cut any costs. If anything, we've capitalized on the recession. We invested a significant amount of capital in the equity and fixed income markets when there was mass panic selling.
-- Jessie Conners, PeppermintPark.com
- Five Ways to Get (Almost) Free PR
- Small Businesses Buying More Health Insurance
- Debt Consolidation Services: Advantages and Pitfalls