© 2011 Apptivo Inc. All rights reserved.

Implementing Effective Cost Cutting Measures Saves Good Money

Posted on December 12, 2011 by Usha Prasad

Andrew Schrage, Founder and Editor of Money Crashers, launched his start-up SparkCharge

Media – a conglomeration of financial websites including MoneyCrashers, in 2008. He started

his business on a shoestring budget at the height of the recession.

“With my business plan, I knew how much I had in savings that I was willing to allocate towards

the business, and I derived my budget directly from that number. And I found ways to save on

just about everything. I did virtually all of the legwork myself in the beginning. I did not have an

accountant, I did not have an editor, and I did not employ any other professionals. While this

made for extremely long work days, I saved a lot of money. I also bartered for a lot of services.

For example, I did some housework for a friend of mine who helped me develop my website

basically for free. Lastly, I bought just about all of my office supplies, furniture, and computer

equipment “used” to save even more,” explains Andrew.

Implementing some very effective small business cost cutting ideas in 2011 has further helped

Andrew save a significant amount of money, including one of his favourites – moving to free

forms of marketing.

© 2011 Apptivo Inc. All rights reserved.

Let’s hear from Andrew himself on how he was able to save good money.

Marketing: We saved a lot by implementing an effective Facebook page for marketing for our

site, which has brought us a new source of subscribers and readers on a daily basis. Rather than

spending money on things like expensive banner advertising, social media has enabled us to cut

costs while targeting a specific demographic.

Automation: Our payroll system was outdated and cumbersome, so we went with an online

payment processor. The result was a significant savings in time (which ultimately saves us

money) and a more convenient system for our employees to get paid, using outright software.

Stressing Time Management: We stress efficiency into our team, but in 2011, we actually

took it a step further and provided our team with a list of small business time management tips

that they could implement on a daily basis including organizing their office space well, and not

trying to multi-task too much.

Increased Oversight in Marketing Initiatives: Up until this year, we would “spitball’ a

marketing initiative, put it into place, and let it run its course. What we found out was that we

were identifying far too late in the game the ideas that simply weren’t working for us. We now

have a goal-based program for all marketing initiatives, so they are now tracked and monitored

on a timely basis to assess their return on investment.

Take Our Own Advice: Another neat luxury is that we have benefited greatly from the

expertise of our employees. Since they naturally are financially responsible and have a passion

for saving money, I have been able to learn from their tips and save money on by bundling

online services, switching bank accounts for our business to minimize our banking fees and

maximizing our interest rates, and using payroll debit cards. These ideas have all resulted in

significant savings for the business, and I got all of these tips absolutely free!

Moving to Plastic: I have always been a little scared, to use plastic. When we realized that we

were giving up free money, we finally made the move to utilize some of the best small business

credit cards. Now we receive miles, cash back, and more perks for our business expenses.

Moreover, we’re able to put limits on any employee cards to minimize risk there as well. As long

as you’re able to pay off your bill every month, I strongly recommend paying for expenses with a

credit card instead of cash.

If you are a Small Business Owner, who has made significant savings by adopting various cost

cutting measures, feel free to share your experience with us.