HOW TO CONTROL COST IN A SMALL BUSINESS:

Controlling costs can seem like a necessary evil, especially at
big companies. But for small businesses, cost control can make
the difference between survival and failure, between staying
ahead of your competition or getting run over.

Here are a few suggestions for keeping costs in line:

 * Stay in touch with your finances. Some small business owners
open their own mail, just to know where their money is going.
They also like to find out if customers are complaining and why.
If you currently calculate profit and loss of your business
every 3 months, or even each month, you may want to calculate
profit and loss more often - just to know where you stand
financially.

 * Control overhead. Do you really need to own your vehicles
or offices, or could you lease for less?  How much computer
power do you really need?  Are you paying for a luxury car
when a compact would serve just as well?

 * Be careful  when borrowing. Shop around and compare loan rates.
With a little planning you can often take advantage of bank rates,
which tend to be lower than either credit cards or lines of credits.

 * Check with industry groups. Discounts are often available for
such items as group health plans and long distance phone calls.

 * Fight the urge to make across-the-board cuts. It's tempting to
cut everything by ten percent, but don't. Study  your costs and
be selective.
You may be cutting muscle - costs that directly contribute to
revenue - Attack causes, not symptoms.

 * Give your employees an opportunity to help. Solicit their input.
Let them know your financial objectives and costs, and reward those
who help make the company more efficient.