How to Reduce Business Costs Using the Internet

With basic Internet connections, small business owners can reap the benefits of free or low-cost services, and reduce the overhead of running an organization.

Difficulty: Moderately Easy

Instructions

1. Use the Internet to issue a press release. In order to draw customers to a start-up business, the press needs to be notified of your new business. A press release, if done correctly, tells the community what your business is about, where it is located, why your business should be selected over competitors, and how customers can reach you. Internet sales, in particular, are difficult to generate without the proper press release--gaining visibility on the web is critically important if your business is Internet-only or primarily based on Internet sales. Free Press Release, an Internet-based service (see Resources section) which helps the small business entrepreneur craft and disseminate a professional grade press release, offers its service for free which reduces, or in some cases eliminates, the financial burden of initial public relations and marketing.

2. Reduce productivity software costs. The largest initial investment, outside of inventory for retail businesses, is usually the computer systems and attendant software licenses. Utilizing open-source software--software anyone can use and modify for free--is an important method of deferring or even eliminating such financial outlays. There are two methods through which a business can utilize open-source software; through a web-only service such as Zoho (see Resources) or through downloaded software such as OpenOffice (see Resources). Each has its own advantage. The web-based Zoho allows businesses to utilize older, and therefore cheaper, computers which may lack the hard drive or platform capacity for downloadable software. OpenOffice, on the other hand, is always available as long as your computer is working, and is not dependent upon an Internet connection once the initial download is complete.

3. Reduce legal costs. The cost of filing legal papers can drain the resources of any business, particularly small and middle-sized businesses. Standard forms, such as those available from LegalForms (see Resources below) are available for download free of cost. Additionally, acquiring sound legal advice can be had relatively cheaply through World Law Direct. It is not recommended, however, that businesses of any type rely on free legal advice entirely, but should a relatively simple matter arise, free help is as good--and much cheaper--than the services of an attorney.

4. Safeguard your information. Data loss and computer hard drive crashes can ruin a business. Safeguarding important information, from customer data to payroll to spreadsheets with expenses and profits, is critical in an age of computer viruses. Though physical safeguarding through the use of an external, detachable storage device (such as a ZIP drive or external hard drive) is the best protection, using Internet data back-up and retrieval is a good--and free--alternative. Companies, such as Sugar Sync (see Resources below) offer a trial period of 45 days free of charge. If you are satisfied with the service, rates are relatively reasonable and can be cheaper in the short run than purchasing an external device.

5. Reduce communication, training and web hosting expenses. Faxing is often an important aspect of any business, particularly if documents must be sent to branch offices, affiliates or even the government. If your business does not need a fax machine, or uses one irregularly, utilizing Faxser's free email-to-fax service would be a viable alternative to brick and mortar fax service businesses such as Kinko's. Preferably, before you venture into business, you would be knowledegable in the software applications you might use. Most of the time, however, the training people receive is spotty and prone to gaps in memory. Utilizing the free training CD offer by Video Professor can allow you and your employees to brush up on critical software skills, and best of all the first CD is free. Finally, hosting a website can be very costly, especially for businesses with low profits. Free web hosting by services such as 1 Free Cart can allow the small- to middle-sized business to operate a virtual store without the cost of hiring an IT professional and spending hundreds of dollars on web hosting costs.

Tips & Warnings

• Network with other small, medium or start-up businesses in the area or, if your business is exclusively online, through blogs, user groups and message boards. The resources and feedback you receive will help in finding your stride with your business. Also, shop around for other companies which offer similar services, particularly if you are not using Windows operating systems as some services (such as OpenOffice) may not work for you. Finally, become a part of an association; the extra advertising and possible referrals can bring in much needed customers.

Resources

• Free Press Release website
• Zoho
• OpenOffice
• LegalForms
• Sugar Sync

[jull14]

on 7/12/2009 Excellent article and very helpful for many here at ehow. Thanks for sharing with us, keep up the good work. I really love your articles, they are very helpful and provide easy steps to follow.