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Banking and Finance  » 10 Money-Saving Tips for Home Businesses

10 Money-Saving Tips for Home Businesses

One of the most common obstacles many home-based working moms

face is trying to start or run a new business on a limited

budget. The first few years of a business are usually the

hardest financially. Some moms leave full-time careers and

substantial salaries to start a new business. Others start a

home business as stay-at-home moms wanting additional income to

support their family as well as a professional outlet to balance

their diaper-changing days.

In either case, starting and running a home-based business takes

money. How much money will depend partly on you and the type of

business you choose to run.

Below are our top 10 tips to save you and your home business

money:

1. Do your own market research by talking to potential clients

or customers. Many new home business owners skip this step only

to come back to it later (or wish they had). Those who start

businesses without doing any type of research, risk the

possibility of their target market not needing or wanting their

particular product or service. The competition may be too

fierce, or there may not be enough potential customers to

support the business. Or perhaps, the product isn't priced

correctly. It is just as important not to price your product too

low as it is not to price it too high. Talk to others in similar

businesses as yours to see how much they charge and what they

offer for that price.

2. Team up with other non-competitive businesses that target the

same market to do some co-marketing. For example, desktop

publishers and print shops can do a direct mail campaign

together advertising both of their services or buy an ad in a

local publication and split the costs. Neither is in competition

with the other. They also can hand out business cards or flyers

for one another as well as give word-of-mouth referrals. It's a

great way to double one's marketing efforts while splitting any

advertising costs.

3. When you have a satisfied customer, don't be afraid to ask

for referrals. People like to help others especially new

businesses trying to succeed. Show pride in your work and people

are sure to notice, and when they do, ask if they know any

others you can send a brochure or sample to. Another great way

to encourage referrals is to offer a discount or special offer

for any customers who are referred to you.

4. Barter or trade your services for other products or services

you need. Associations and organizations are not only great

places to network; they are also great for finding businesses

that offer services and products you need. Look for businesses

you could help with your product or service and offer to barter

or trade for theirs. (Be sure to check with your tax

professional for tax issues involving bartering and trading.)

5. Find another home-based working mom to swap babysitting with.

All home-based working moms need some dedicated time to work on

their business tasks. By swapping with another mom, each can

work on their businesses without adding to their childcare costs.

6. When buying new office equipment, go to a place that offers a

low-price guarantee. You can save time and money by shopping at

places that will refund any difference in price if you find the

product cheaper elsewhere.

7. If you are looking for computer equipment, consider buying

used equipment. Look in the classifieds and talk to others that

may know someone looking to upgrade. Ask for warranty

information and make sure the machine is in good working

condition. Also take a look at the computer companies offering

refurbished machines. Some are priced accordingly and usually

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come with some type of warranty.

8. Send postcards for direct mail solicitation. They are cheaper

to print and less expensive to mail. Another advantage is that

they are more likely to be read since they take no effort to

open.

9. If you hire sales help, pay by commission only so you only

spend money if you make money. A salesperson can increase your

sales without adding any up-front fees or salaries.

10. Use pre-printed design papers for letterhead, brochures and

business cards if you only need a small amount. The papers can

be found at most large office supply stores, and they are great

for new businesses trying to get started on a small budget.

Lesley Spencer, the founder of Home-Based Working moms has

helped thousands of moms start their businesses in the 10 years

that she has been in business. Their group provides networking,

support, media opportunities, and more. By actively being

involved in such a group you also increase your chances of

success because of the power and support that she offers and the

opportunity to network with other professionals. Getting

connected with positive "winners" in the entrepreneurial world

is just another way to succeed.

These money-saving ideas should help with your budget but new

business owners also need plenty of drive and determination to

succeed. It takes time to develop and grow a business. So be

patient and give it all you've got!

About the author:

Diana Ennen, author, publicist, book marketer and mentor. She

has written numerous books on operating a home-based business

including Virtual Assistant: the Series and is president of

Virtual Word Publishing http://www.virtualwordpublishing.com and

http://www.Publicity-VA.com.