Hey, did you happen to catch Part 1 yesterday? You might want to check it out. But, if you’re just scanning through the interwebs and don’t have time, then no worries. Here are more ways to save your small business some money.

I am absolutely stealing this from Jason Calacanus for one very good reason — he is right:
“Buy Macintosh computers, save money on an IT department”
Really, if you’re running a startup and are looking to save money (as if there’s a startup that isn’t looking to save money these days), his post is an absolute must read. His track record speaks for itself.
But I’d like to add something to Jason’s point. Not only can you save on IT costs, but by using a machine that actually works and doesn’t crash all the time, you have a chance to be much more productive and spend less time troubleshooting issues. I used an array of MicroSoft, Linux, and Apple platforms for years — basically because I had the same thought as everyone else: I just need a word processor and internet access, so I can save some money by buying a PC.
Personally, I won’t be doing that ever again. I’m exclusively Apple now. As a result, I spend less time trying to install and fix things and can focus on just getting things done. I’m sure MS devotees feel otherwise, but I’m not the only one that’s had this experience.
If your business is based on selling products, see if you can find a more local distribution channel. That way you can save on shipping and freight costs.
I can’t tell you how many times I’ve seen a small business that hired a design shop to build a website for them, only to get outlandishly charged on a monthly basis when the design shop then bills them for hosting the website.
Now, I understand that most small business owners may not know any better. But I’m here to tell you: this is pure highway robbery.
Let’s say you had a shop build you a simple, static, HTML website in 2005. Then they charge you $125 a month to host it and set up your email accounts. If you want to update something on the website, they charge you. If you want to upload a new picture, they charge you. If you need support, they charge you. Get the picture? They’re overcharging you.
Most small business have a tiny web presence. Unless you provide access to sophisticated web-based tools or services, your small business probably has a 3 – 7 page website with some basic information about you, your team, and your services.
Guess what? You can get your own hosting with places like HostIcan for $143.50 a year. That includes unlimited hostable domains, unlimited disk space, unlimited bandwidth, and of course, unlimited email accounts. At this time, they are offering 35% off your first year, which brings the price down to $93.21. Buy multiple years and save even more.
If you only have one little site, take a look at Laughing Squid for your hosting. Laughing Squid is very well-known in the Bay Area and famous for their customer service. A Mega Squid account is $8 a month and gives you 2GB of disk space, 75 GB of bandwidth, and 25 email accounts. For most small businesses, that’s plenty. And $96 a year is a whole lot better than $125 a month.
In a similar vein, many businesses get too comfortable with what they’re paying for internet access. They don’t want to rock the boat. If it ain’t broke … and all that jazz.
Yet, as competitors continue to emerge in broadband, you may be able to find a better option. That option might be a similar service at a better price, or faster connectivity at a slightly higher cost.
If your business is web related, assuring a fast connection can improve productivity, and therefore, profits. It’s worth looking into. However, before you go and sign up, be sure to check with people in your community about the actual speeds and customer service they’re getting. Some plans don’t live up to their marketing hype. Ask around online.
Sometimes smaller carriers will offer better rates. Many carriers will be responsive if you tell them you’ve found a better deal, or even if you simply ask for one.
Time to give your website a facelift? What kind of site is it? If it’s a blog or small website, hire a shop or consultant that can put you on a WordPress-based platform. That way, when you want to update or change content, you don’t have to pay your design shop just to change a phone number. You’ll have similar up-front costs for the design, but less for ongoing maintanance.
If you’ve been putting money into traditional advertising and aren’t getting the results you once did, consider using email and getting involved in the social media scene instead. If you don’t know what you’re doing, don’t just jump into it by yourself and start spamming everyone. Ask around, read, or hire a consultant to set you off in the right direction. Let them train your staff on what does and doesn’t work online.
If you can’t afford a full-time staff but need help, hire freelancers to get you through heavy workloads or to provide the skills you need to get the job done.
If you’re mailing payments, see if you can set up free payment transactions through your bank’s website.
If you need to mail things, try to coordinate shipping and mailing to take advantage of bulk rates.
People aren’t buying as much as they used to, so you can free up your cash flow for other things if you reduce the inventory of goods you keep on hand.
For many small businesses, their biggest expense is employee hours. Going to a 4-day work week and cutting wages by 20% is one way to cut back. Your employees may not be too happy, but if it means the difference between staying in business or not, most of them will understand. Explain that things will go back to the way they were when business picks back up.
This is a no-brainer, but make sure you regularly back up vital digital work to an external hard drive. Or two. The financial repercussions of losing work or proprietary information are not worth the risk. This is something I’ve been writing about for a long time. It’s happened to me before, so believe me — the smaller your business, the harder it will be to recover from losing your work. Find a secure way to backup your data.
A 1TB drive costs like $100 now, so there’s no excuse.
I can go on and on with this stuff, but alas, our little blog is only so big. So stop back tomorrow when I’ll focus in on web-apps that can save your small business money.