Necessity truly is the mother of invention (or more specifically inventiveness). Many successful entrepreneurs have developed flourishing businesses from home by combining ambition with economy, energy and evolution. Coordinating burning desire with a miniscule bank account requires a certain finesse in multi-tasking combined with a modicum of soft-shoe maneuverings in financial matters.



Cost savings play a major role when operating a new business on a shoe string. Keeping a tight reign on operating expenses can result in increased profits, which, of course, allows for capital investment for growth. Some of the ways you can save money while still operating a professional home based business are:

Marketing: Always be ready to promote your home based business in any situation by carrying and handing out business cards at every opportunity.

Make sure you provide any promotional information with your invoices.

Volunteer in community activities make your name and your business familiar to others.

Offer to write free, industry specific articles for your local newspaper, community newsletters or on the many on-line article sites on the Internet.

Join the local Chamber of Commerce, attend meetings and network with other businesses in your locality.

Form alliances with other businesses in your area. Sometimes they will be willing to barter you may be able to work out a mutual exchange of service for product.

Offer your customers a discount for every five successful referrals that result in sales for your business.

Create a web-page. Offer free newsletters to your clients. Write keyword-rich articles about your business and submit to popular search engines.

ALWAYS make your customers your number one priority. Guarantee and deliver good service and you are more likely to retain clients.

Advertising:

Create and distribute flyers in your area Schools, daycare centers, retirement homes, grocery stores and other locations often have bulleting boards; be sure to ask for permission before you submit your promotional information.

Contact the editor of your local newspaper to see if they will promote your business via a press release. This is an excellent method of obtaining free exposure for your business.

If possible, have your company name and contact information displayed on your vehicle.

Often printing companies create placemats for local restaurants and to offset the cost they sell advertising space at extremely low prices.

Check out local restaurants in your area to see if they partake of this service.

Office Supplies & Equipment:

Use re-cycled cartridges for your printers, fax machines etc.

Buy as many of your office supplies (pens, highlighters, etc) in August. The larger outlets often promote these items as back-to-school specials and you can get some great buys then.

Save on shipping costs by recycling bubble wrap or foam. Better yet, use old newspapers as stuffing.

Unless you do mass mailings, renting a postal meter is an unnecessary expense - use stamps instead.

Reduce, reuse and recycle at every opportunity. The backs of papers destined for the recycling bin can be used for inner-office note taking.

Look for free business forms on the Internet. There are hundreds of places that offer free forms that can be easily customized to suite your particular business.

Download free or trial versions of any software you plan to use in your business. Make sure you only download from sites that display security locks so you don't inadvertently pick up a nasty virus.

Buy good, used equipment. Frequently, you can find refurbished computers, copiers, telephone or other items at auctions or in the classified section of newspapers. You may find gently used chairs, filing cabinets or desks at office furniture outlets

Utility and Operating Expenses:

Conserve energy whenever possible. Unplug printers, fax machines and computers when not being used. Most people are not aware that these items still use energy even when turned off.

Program your thermostat so you are not paying to heat or cool empty rooms.

Investigate reduced rates for businesses with your utility provider.

Get a long distance plan for your phone or, better still, if you use long distance a lot, look into obtaining an 800 number.

Keep cell phone calls to a minimum. If possible, schedule business calls for when you have access to a land line.