Knowing how to cut costs is key to success

4/28/2011

While entrepreneurs have traditionally been able to head to the bank and get commercial loans to fund their businesses, only a few have developed the unique skill of cutting costs to make those loans last. PCWorld recently offered some advice on how business owners can make the most out of their funds.

First, the source suggests using open source versions of computer programs. Open source software often provides all the same functionality of traditional programs but at no cost. For example, instead of paying $200 for Microsoft Office, businesses should give the free OpenOffice a try instead.

Another recommendation is to manage power usage more effectively to minimize electricity bills. "The good news is that you can follow plenty of smaller steps to reduce energy consumption, lowering your expenses in the process. If you have a small team or you work at home ... you can take a few simple and nearly universal measures this afternoon and see the savings immediately," PCWorld explains.

Outsourcing can also help reduce costs. For example, rather than bringing on a permanent sales force, an entrepreneur could hire a third-party sales team and get the same results for less long-term costs.