This is an area where you can really get carried away especially if your business is very small. You don’t have to buy in bulk if you have a really small business. It will cost you far more than it will save you. Just buy what you need from month to month. Buy recycled paper. Buy only the amount of paper clips and rubber bands than you need, not huge bulk packages. Don’t buy cut gadgets at the office supply store, no matter how much you think they will help you. If you buy your office supplies off the Internet, only buy from sites that offer free shipping.
Every small business needs liability insurance in case of lawsuits. Don’t go without liability insurance just to save money. There are many types of liability insurance policies depending on the type of your small business. Get the best type for your small business and shop around for the lowest cost. You may also need property, casualty, and automobile insurance.
Income Tax Expenses
There isn’t much you can do about the amount of taxes your small business will owe every year except take every possible deduction you are entitled to. In order to do that, you may need to hire a tax professional to help with your taxes. What you can do in advance is keep good records. Record every expense and all your income using a business accounting or home and business bookkeeping software program.
You don't have to use a complex or expensive program, but keeping good records will help your accountant at the end of the tax year. The cost of an accounting or bookkeeping program for your small business is tax-deductible.
The cost of hiring a tax professional is a deductible expense on your taxes. It may also be more than worth it so you don’t have to deal with any errors you might make on your taxes and so every possible deduction will be taken for your benefit.
Marketing and Promotion Costs
Marketing, advertising and promotion costs for your business can be very expensive for a small business. In a recessionary economy, they can be almost cost-prohibitive. Small businesses do have choices. One of those choices is to use publicity. Publicity, by definition, is free.
You might normally use an outside agency for your marketing program. At this time, you may want to do your advertising and marketing yourself. One trend is to use your personal or business vehicle as a moving advertising billboard. Use press releases in your local and regional newspapers. There are a number of cost-effective marketing ideas that you can pursue yourself.
