• Home
  • About
  • Contact

The Private Business Owner

An Online Publication by Generational Equity

  • M&A
  • Finance
  • Human Resources
  • Operations
  • Sales & Marketing
You are here: Home / Uncategorized / Using Negotiation to Lower Business Expenses in 2011 (Series Part 1 of 5)

Using Negotiation to Lower Business Expenses in 2011 (Series Part 1 of 5)

March 3, 2011 By Tom Farrell

2011 is upon us, and with the start of the new year, privately owned businesses are looking for a way to save on business expenses. In this five-part series on cutting business expenses, we are going to pinpoint various ways for you to lower business expenses in the new year.

During Part 1 we are going to focus on negotiation.

Businesses and business owners worldwide have felt the effects of the down economy, thus the need to reduce business expenses is non-negotiable. The expense-cutting trend has forced the marketplace of providers catering to businesses to become more competitive. From commercial leases to telecommunications contracts, it has become a buyer’s market.

As a business owner, if you have not revisited expenses in your company in the past 12 months, there is no better time than now.

 

Your Negotiation Advantage for Business Services

The economy hasn’t just affected you, but it’s affected your business provider. As a result, service providers have had to come up with creative packages in order to continue to drive their business. If your contracts are approaching expiration and it’s time to sign a new agreement, then it may be time for you to make some changes and take advantage of more aggressive pricing available in the marketplace. In many cases, you will not have to change providers to see the benefit.

With the changes in the economy the “best deal” that you found three years ago, or even a year ago, may no longer be as competitive. Consider how much time you are willing to have an employee invest in researching key services and start shopping around service providers to make sure that you are still getting the best value for your money. Prior to your search, solicit referrals from business associates so that you have a solid set of businesses to quote. And, don’t be afraid to have them compete against each other for your business.

From your electric bill to your web hosting provider, review the rates that you are currently paying and what the competitors are offering. If you don’t want to lose your provider, you’ll have negotiation room on your current rates if you shop around to find out what you can get elsewhere.

Negotiate your rates, negotiate your services, negotiate everything.

© 2011 Generational Equity, LLC All Rights Reserved

Share this:

  • LinkedIn
  • Twitter
  • Facebook
  • Reddit
  • Pinterest
  • Email
  • Print

Filed Under: Uncategorized Tagged With: business, Expenses, negotiation, save money

The Private Business Owner – A Generational Equity Blog

The Private Business Owner is an online publication sponsored by Generational Equity. PBO aims to provide useful tips and information that will improve both the lives and businesses of entrepreneurs, as well as provide valuable insight into the company exit process through bi-weekly M&A Digests.
  • Learn more about Generational Equity

Set Yourself Up For Success

To help business owners become more informed, we've created free, valuable whitepapers to help you as you embark on your jouney.

Start learning today!

  • How To A Build A "Buyer Ready" Business
  • 5 Common Mistakes To Avoid When Selling A Business
  • Uncover Why Investors Are Motivated To Buy Your Business
  • Exit Planning Basics: What You Need To Know Before You Start
  • Everything You Need To Know About The Evaluation
  • How To Find Buyers For Your Business
  • Unlock the 4 Secrets To A Successful Business Sale
  • Ultimate Glossary of Must-Know Terms If You're Selling A Business
  • Acquisition Case Study of Johnston Enterprises: A Novel Split Pays Off

© 2022 Generational Equity. All rights reserved.      General Disclaimer / Privacy Policy     

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.