How to Survive on a Shoestring Budget
When I started AHP Volution, I initially wanted to build web sites for small businesses on a tight budget. Since then though I've shifted focus to just helping micro enterprises cope with the rigors and expense of setting up their online presence, marketing, IT, and operations. Well, as a micro business myself, I not only survived - I thrived!
Confession time! ... I didn't do it on my own. I had LOTS of help from many people! ... And golden nuggets and pearls of wisdom that I've picked up along the way.
But success only came when two things happened:
- First, I quit the chasing after profits. I just started to help people. I'm not saying I don't make a profit - I do. It's just not my PRIMARY motivation.
- Second, I had a business 'mind-shift' - it's almost as if I started to see business in a new way (influenced I'm sure by what I've read).
Picture Credit: By Martin Kingsley from Melbourne, Australia (Cashmoney) [CC-BY-2.0 (www.creativecommons.org/licenses/by/2.0)], via Wikimedia Commons
Contents at a Glance
Cash Saving Tip #1:
Don't pay for software (if you can help it)!
Open Source Software saved my lily-white business butt. ... So it can save yours too!Let's get something straight right here. Unlike some, I do not consider the free software and open source movement to be akin to the second coming of the Messiah. Neither am I a die hard supporter of [any particular brand] 'paid for' software. I consider myself technologically agnostic. I use what is practical, compatible, and what works. I'm not going to debate the merits of free vs. paid, etc., etc., and so forth in this lens.
That being said though, free and open source software can save your micro business a bundle.
You see, when you buy a computer - any computer - certain EXPENSIVE software will either be pre-installed (that will activate on first use), or they will be offered to you as "optional" extras by wide-eyed, over-eager store salesmen. They may use various techniques to get you to agree to these purchases. Techniques like FEAR ("if you don't get X, you won't be compatible"), EGO ("this X product is THE latest/best on the market"), and LOGIC ("you can claim X software purchase as a tax deductible"), are common.
The trick to saving a heap of cash is to realize that you don't really NEED a lot of the software they offer. For the micro entrepreneur, there may be much more cost effective or even FREE alternatives available. Don't get sucked in by the hypnotic allure of the sales pitch.
When I started AHP Volution, I personally saved over eight thousand dollars ($8,000), by using open source software alternatives instead of the 'brand name' counterparts. There's nothing wrong with the 'paid for' software - it's actually quite good - it's just EXPENSIVE!!
So I started using TurboCASH for my accounting and invoicing, OpenOffice and Google Docs for my general office documents, Scribus for my desktop publishing, vTiger for my CRM, OpenProj for my project management, Dia for my diagramming, and GimpShop for my graphics, and ... and ... and.
Sure, some of these products are not as 'slick' or 'glitzy' as their brand-name cousins, but as a micro business start-up, I'll gladly sacrifice a bit of glamor to save over eight Grand!
Perhaps you should investigate lower cost software alternatives for your business?
Cash Saving Tip #2:
Get a Kindle! ... It will save you money down the line.
There are a few problems with traditional books though:
- They take up a lot of space.
- If you have a lot of books and magazines, it can be time consuming to search through them for something specific.
- Paper is heavy.
- Physical books are not "green" until they are recycled. Until then, a book is just a chopped up tree. And if you recycle your book, you don't have it anymore!
- The Kindle doesn't take up much space, and doesn't increase in weight even if you have hundreds of books stored. My whole library now travels with me!
- It's easy and quick to search. I can find just the information I want when I need it.
- Delivery of a Kindle e-book is almost instantaneous. No waiting. No shipping cost for e-books.
- Kindle e-books tend to be MUCH LESS COSTLY than their paper counterparts.
SUPER-POWER Tip!
How You SHOULD Be Collecting Money!
It's a SUPER-POWER TIP because it saves you time AND makes you money, and is easy-peasy to implement.I've adapted this business cash flow productivity booster tip from a book called "CrashProof Your Business" by Peter Carruthers (ISBN: 0-9584564-9-6).
Here's how it goes:
Most small businesses don't know how to collect money.
You probably have a list of all your customers that owe you money. It's called an Aged Debtors List and it looks something like this:
Client
Days
Amount
Joe Soap
60
$1,500
Jack Liquid Soap
30
$100,000
The Soap Company
60
$20,000
Specialist Soaps
40
$5,000
Bar Soap Inc.
100
$600
Most accounting programs assume you want to collect the oldest debts first. They sort your aged debtors list as follows:
Client
Days
Amount
Bar Soap Inc.
100
$600
Joe Soap
60
$1,500
The Soap Company
60
$20,000
Specialist Soaps
40
$5,000
Jack Liquid Soap
30
$100,000
Unfortunately, this means that if you blindly follow the advice of your accounting program, you could be spending your valuable time chasing trivial amounts of debt, and letting the big fish slip through your fingers.
A better way is to use something called the "VIP Factor!" The VIP Factor is just the days outstanding multiplied by the outstanding amount (Days X Amount). Slot this into your table and sort by VIP Factor. Any spreadsheet can easily do this. Your newly sorted aged debtors list should now look something like this:
Client
Days
Amount
VIP Factor
(Days x Amount)
Jack Liquid Soap
30
$100,000
3000000
The Soap Company
60
$20,000
1200000
Specialist Soaps
40
$5,000
200000
Joe Soap
60
$1,500
90000
Bar Soap Inc.
100
$600
60000
Now all you need to do, is start collecting money from the top of the list.
This will save you time and energy, and give you the most effective return for your efforts! If you have time, then go and chase after the paltry amounts owing - or outsource it. Most businesses don't do this. Try it, and you'll be head and shoulders more efficient than your competitors.
Books that Inspired Me
... and gave me fresh insights!
I enjoyed them. I hope you do too.
In Conclusion ...
We would like to help you to start thinking creatively about your business. Small and micro businesses are usually extremely adaptable, which is an advantage that bigger businesses do not share.
Carpe diem!
Some Links to Free Business Software
- TurboCASH
- TurboCASH is a full-featured accounting package for single users, small networks and distributed networks. It is ideal for the SME market, is available in multiple languages and automatic setup for your region. Extensive documentation is available and is based on Generally Accepted Accounting Practices (GAAP).
- vTiger CRM
- Never let a a business prospect slip through your fingers again. vTiger is a true open source full-featured Customer Relationship Management solution, that integrates directly into your internet browser on your local desktop or laptop PC. If you use Firefox as a browser, it can be configured to start automatically when the browser starts. Always on equals always ready for your next customer. You can also invoice and email directly from within vTiger - a big plus!
- OpenOffice
- OpenOffice.org 3 is the leading open-source office software suite for word processing, spreadsheets, presentations, graphics, databases and more. It is available in many languages and works on all common computers. It stores all your data in an international open standard format and can also read and write files from other common office software packages.
- Open Source Software Compendium DVD
- Get a whole compendium of open source and free software here. You have to pay for the service of compiling, cutting, and posting the disk, but it could still save you 95% of your software costs. All the latest products are pre-downloaded, so you don't have to use your own bandwidth, or waste time. Just install and go!
- Scribus DTP
- Scribus now brings professional page layout to Windows desktops with a combination of press-ready output and new approaches to page design. Underneath a modern and user-friendly interface, Scribus supports professional publishing features, such as color separations, CMYK and Spot Color support, ICC color management, and versatile PDF creation.
- Dia
- Dia is very similar in functionality to Microsoft Visio. You can use it for all your technical diagramming needs.
- GIMPShop
- GIMPShop is a modification of the free/open source GNU Image Manipulation Program (GIMP), intended to replicate the feel of Adobe Photoshop. Its primary purpose is to make users of Photoshop feel comfortable using GIMP. It shares all GIMP's advantages, including the long feature list and customisability. GIMPshop modifies the menu structure to closely match Photoshop's, and adjusts the program's terminology to match Adobe's. While GIMPshop does not support Photoshop plugins, all GIMP's own plugins, filters, brushes, etc. remain available.
- OpenProj Project Management
- OpenProj is an open-source desktop project management application similar to Microsoft Project. OpenProj has a familiar user interface and even opens existing MS Project files. OpenProj is interoperable with Project, Gantt Charts and PERT charts.
Tell Us What You Think
Are we on the money? Or have we missed the mark?
Feedback is welcome. All your feedback is valuable.
If you have any other cost saving tips for your fellow readers, why not share them here?
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Feb 4, 2012 @ 10:35 pm | delete
- Great material. I am starting to develop my business, and cutting costs on software is one of my priorities. Thank you for sharing this valuable information.
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AHPVolution
Feb 4, 2012 @ 11:57 pm | delete
- Thanks for the kind words. There will be more lenses soon of similar ilk. Good luck with your business.
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AHPVolution
Adam Phillips is the owner of AHP Volution - a business helping other micro businesses save money and get more 'bang for their buck' for marketing, we... more »
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I LOVE MY KINDLE!
You'll love it too!
Kindle, Wi-Fi, 6" E Ink Display - includes Special Offers & Sponsored Screensavers
Amazon Price: $79.00 (as of 06/01/2012)
In my game, knowledge is key! The Kindle e-book reader has been a real lifesaver for me.
Amazon will tell you all sorts of things and bamboozle you with terms like 'E Ink', screen size to body size ratio, weight and size specifications, blah, blah, blah. .... WHO CARES? I don't!
Here are MY top 10 reasons why the Kindle is awesome:
#1. It's light, thin, and compact. I HATE big and bulky. The Kindle weighs in at just 170g. So it doesn't load me down when I travel.
#2. It's affordable. The version I have is just $79.
#3. It's easy to use. It only took me 15 minutes to become fluent with it's operation (an I is not da smartestest person in da world).
#4. The books are cheap. Kindle books tend to be quite a bit cheaper than their printed counterparts.
#5. Book and media delivery is almost immediate. When I want something, I want it now! I hate postage delay with a passion. Buy the book and be reading it within a minute. That is truly amazing!
#6. The battery life lasts FOREVER! This is the first device I've ever owned where I only have to charge it once a month. All you need is a USB port.
#7. It's storage volume is immense. They say you can store 1000 - 2000 books on the Kindle. That's plenty. I'm not even close to that. My whole library goes wherever I go.
#8. Reads multiple formats. The Kindle also reads mobipocket, and plain text. It can also read HTML, Microsoft Word documents, and Adobe PDFs with a quick conversion.
#9. I can send documents directly to my Kindle. I can read important documents without having to boot up my laptop in a train, bus, or taxi, or if I'm at a client, or waiting in a lobby, ...
#10. Information is easy to find. It's easy to annotate and find information across my whole library. This means I can get the information I need quickly. This gives me an edge in meetings, and the sources are irrefutable.
#11. IT'S GOT A HUGE 'COOLNESS' FACTOR! Enough said.
Now stop making B.S. excuses to yourself for not getting one, and just get one! (HINT: Click the 'Buy Now' button above)
