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HOME BASED BUSINESS : Cost-Cutting Strategies for Your Home Business ServicesWith mounting energy bills eating into everyone's income and increasing the cost of a home business, it's a good time to look into cost cutting strategies for your home business services. First we'll take a look at some ways to keep your energy costs in line, followed by some other ways to cut corners and save. Cost Cutting Business Strategy #1. Cut Utility Bills Now is a good time to compare the choices you have for providing heat and electricity in your home office. First, you may find immediate cost savings by switching from a conventional system to an alternative one like cutting down the energy demands on your furnace by heating your home with your wood-burning fireplace. In the summer, reduce air-conditioning costs by scheduling your work around the hottest hours of the day, using attic fans and skylights that open to let out the heat. Often you can do this without decreasing your productivity. If you use propane or heating oil and have a choice of suppliers, compare prices. Find out if your home based business qualifies for a business discount or business rate. If you can get a business rate, make sure it's actually cheaper than your residential rate. Some state utility commissions tilt in favor of consumers, but many offer business discounts. Some utility companies offer free energy evaluations where a certified inspector will come to your home and assess your home and office energy-use. The inspector will show you where you can save resources and money and offer specific suggestions on how to do so. If a free inspection isn't available, it may be worthwhile to hire an energy auditor. You can locate an energy expert through the Residential Energy Services Network (RESNET). You can calculate your home's energy use at http://hes.lbl.gov. Additional information can be found at The American Council for an Energy-Efficient Economy. For a specific weatherization assistance program, try www.eere.energy.gov/weatherization. Cost Cutting Business Strategy #2. Make Your Home Energy-Efficient Making a home improvement here and there now qualifies for tax incentives provided in the Energy & Transportation Tax Acts of 2005. Beginning January 1, 2006, you can recover up to 30 percent of the cost of solar water heaters and photovoltaic equipment in the form of tax credits. There are also credits for adding insulation or roof materials that'll reduce heat loss, as well as putting in geothermal heating and central fan systems. To save on home lighting, use compact fluorescent and halogen bulbs. They use less energy, produce more light, and last longer than ordinary incandescent bulbs. To find out if your existing home office equipment and anything else that uses electricity is being an energy hog, buy a device that enables you to monitor energy usage. One such device is called Kill A Watt from P3 International. When replacing business equipment, look for office equipment that displays the Energy Star logo. Using such equipment can cut your electric usage by as much as 50 percent over other equipment. Learn more about EPA's Energy Star program at www.energystar.gov. Replacing home appliances over 10 years old is also something to consider. Cost Cutting Business Strategy #3. Get a Better Deal on Phone Services Increasing numbers of people are saving money by using voice over internet protocol (VoIP), such as Skype. While quality of service varies, a friend of ours who lives outside the U.S. reports people hear him better when he's using using Skype than when he's on his land line. Other major VoIP providers are iConnectHere, Net2Phone and DialPad. You may also be able to save money on your cell-phone service. To get customers to switch services, providers are constantly competing with each other by offering lower prices. Another money-saving option is to combine your phone with your internet service. Check prices carefully, though. For example, we get SBC's bundling of local and long-distance service, but we're required to pay for tacked-on services we don't use. If you want to combine your phone wth your internet service, shop around to make sure you're actually saving on a bundled package. Cost Cutting Business Strategy #4. Save on Office Supplies and Equipment If you need to replace old office equipment or replenish dwindling supplies, there are a number ways to cut costs.
Cost Cutting Business Strategy #5. Pay Credit Card Bills Soon After They Arrive Credit card companies will take as many as three days to log your payment, so your best bet is to pay soon after receiving your bill if you have the money in your account and can pay the balance in full. If you miss the closing date, you'll be charged the larger of a late fee (often $39) or interest on the old and new balance. There are a number of ways you can cut costs and save money in your home based business. With minimal effort, these five strategies will put a little extra money in your pocket now and add up to big savings for you and your business year after year. 4 Myths About Home Based Business InformationThere are a ton of misleading information about home based business that adds to the complication of starting a new business. 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