Tell your money where to go By Traci Matt Associate Editor here’s nothing in the world more demoralizing than money.” — Greek author Sophocles, 450 B.C. Radio fans know it’s hard to get through a day without running across one of financial guru Dave Ramsey’s shows. His bottom line is simple: Save, give, and don’t spend more than you make. Ever. While this advice is hardtack for some small business owners who have been used to flexible credit lines and sloppy management practices, the current busi- ness environment calls for paying atten- tion even to the simple. Are there ways you are wasting money in your business, or perhaps cost-saving strategies you’ve been ignoring? Stacey Walker, an instructor for Ramsey’s Financial Peace University, recently retired as an office manager for a small Midwestern engineering firm. Walker said she habitually tracked rela- tively minor expenses in her office which over time could have added up. “As with personal finances, when you look at the small ticket items, sometimes making small changes will encourage big things to happen,” she said. Three ongoing expenses she examined were contract terms versus real needs of cell phones, office phone lines and copier usage. “T was able to save several hundreds of dollars on some of these expenses. When times are good, we have a tendency to think our vendors are looking out for our best interests. In reality, most won’t look to see where they can save you money, like with cell phone bills, phone systems with Internet services. I developed a habit of pricing several of our recurring expenses yearly, just to be sure I was getting the best pricing available at that time,” said Walker. Office supplies are another area to tackle when you are looking for ways to rein in expenses. Walker said they elimi- nated “special orders” requested by staff, like expensive pens. “Everyone looks at things differently when they realize that when they stop ordering the really expensive pens, they eens nates es LA ane in tHhatn Ave PALA”? ottice supply vendors by sending her “usual” order to several vendors and com- paring the bottom line. “I went with Staples because they would match most of the prices for supplies I was picking up from Sam’s Club. I was also able to get fixed pricing on several expen- sive items like printer cartridges that we used frequently so I didn’t have to worry about price increases,” she said. Other office supply and equipment tips include: * Keep close track of office inventory so you don’t have to run out at the last minute and pay full retail. * Lock the supply cabinet or require signatures for each item removed. It may not be a popular idea, but a little accountability is sure to reduce waste. ¢When leasing equipment, get an option to cancel due to closure or consolidation. ¢ Run the numbers on costs for service agreements. Is the convenience cost- ing you? It may be better to pay for repairs as needed, especially if the equipment is not heavily used or inexpensively replaced. * Reduce phone landlines by configuring office PCs to send and receive faxes. ¢ Set up an in-office computer network to allow employees to share printers. Take another look around Exchange Technical Support adviser Paul Rupp, owner of Kansas City-area New Concept Auto Service (NCAS), said his experience has shown that time is money, especially when it comes to technical equipment. Something as sim- ple as sticking a user manual in a plastic bag and attaching it to each piece of equipment saves steps and lost produc- tion time. “Evaluate the time it takes a techni- cian to get from one place to the next and move equipment to the most efficient places. A well-organized shop is price- less,’ he said. “Purchase the highest quality equipment available that you can afford, that does the job the fastest, and from people who will be there for service. Use equipment that is fully automatic, that you can start, walk away from and go do something else. Any piece of equipment sitting idle is not generating revenue, so don’t buy equipment you don’t really need.” Rupp said his suburban locale pro- vides the luxury of keeping parts inven- “NCAS carries very little inventory, approximately $6,000, because we are centrally located to many auto parts warehouses. We get high quality import parts delivered daily with no shipping charge by maintaining a minimum pur- chase each month.” Rupp has also come up with creative ways to keep building expenses in check. NCAS rents three spaces in a strip mall, which initially came with three water meter bills. He had the water department shut off two of the meters and with some simple plumbing changes, now gets all his water from one source. His trash pickup strategies are partic- ularly creative. He splits the cost of a dumpster with a neighboring business, and reduced pickup days to every other week, cutting the bill by half. On the green side of things, Rupp eliminated 10 percent of his light fix- tures by installing magnetic ball