Five ways to save in 2009

As 2008 is wrapping up, many businesses are already seeing leaner purchasing budgets ahead in 2009. Don't let a smaller budget keep you from buying the essential tools and services you need to succeed, though: here are some key ways to save money in the next year.

1. Build on existing relationships. Vendors you already do business with are more likely to give you good deals on future purchases. Whenever you're shopping to expand on or replace existing equipment or services, get some competing offers, then go to your current supplier and lay out the situation.

   See what they can come up with to keep your business: they may offer a bigger discount than expected, extra supplies, or a better service contract. Decide in advance, though, if you're willing to walk away from a satisfactory relationship over a small difference in price, or if you're just using the competing offers as leverage.

2. Buying vehicles or equipment? Think used. While many businesses prefer to buy new vehicles, now's a good time to consider a 2 to 5 year old car, truck, or utility vehicle. If you choose a trustworthy dealership that offers quick service guarantees and solid warranties, the reliability you need will still be there.

   The same holds true for expensive office equipment like copiers and LCD projectors. While technology changes quickly, many businesses only use the basic features. As long as the equipment performs as expected, you'll be getting what you need at a lower cost.

3. Think SaaS for software. The "Software as a Service" or ASP model of software delivery generally provides the same standard functionality and features as licensed software. However, you'll pay much less up front, spreading your costs out into ongoing monthly payments.

   If running your business software on-site is important to you long-term, you can always switch from a hosted model to traditional software in the future. Just make sure that the SaaS provider you start with offers a robust data export option.

4. What's green can also save green. One of the best win-win situations for small businesses is environmentally-friendly purchases that help you reduce energy costs. For example, large warehouses or retail stores that make an investment in insulation and other weatherproofing can see significant savings in HVAC costs.

   Other basic green tips like switching to compact fluorescents (CFL) instead of incandescent bulbs and encouraging employees to bring in their own coffee mugs and water bottles to cut down on disposable usage are also great for the environment while helping you save money.

5. Buy in bulk. It works for your home and it can work for your business, too. Buy office and kitchen supplies from warehouse stores instead of specialty office supply companies and you could see immediate savings.

   This includes more critical supplies like fuel and raw materials, too. Your vendors are probably facing uncertainty in their business — your commitment to ongoing purchases from them can be worth a lot. Even if they're not able to offer you an immediate discount, you may be able to set the stage for savings in the future.

As you're trying to cut costs, though, try not to trade short-term savings for long-term problems. Just because your purchasing budget is smaller than you hoped, that's no reason to buy inferior equipment or skimp on the features your business really needs. If you're confident in your business prospects, it makes sense to invest in equipment that best meets your requirements — knowing you'll see a long-term ROI.

Have any good tips for saving money in your business? Share them below!

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