Here are some ideas as a technology business that I’ve used in order to keep my fixed costs and expenses low. Maybe some of these will be helpful to those that read this blog.
1. If you use a dedicated server, consider a VPS or shared hosting. I was using a dedicated server, but soon found out that a VPS would work just as well for the number and kinds of customers that I have. The virtual private server allows me the same control as a dedicated server, but at a much lower cost. Some VPS packages also can be faster than a low-end dedicated server, simply because the VPS has to use much better hardware if it is split up between 4-10 users. One thing to watch out for: Make sure that page load times and database stuff doesn’t bog down.
2. VOIP. One of my recent posts covered this. The specifics here was buying a decent VOIP phone (Aastra 480i to be exact), and then using a SIP-to-Skype bridge (SIPtheeSkype). This combination allows me to use my Skype subscription for unlimited US calling, plus a inbound telephone number, for $54/year. This is much better than paying the phone company $40+/month, and with some companies, a contract is involved. DISADVANTAGE: You won’t be listed in the phone book. Considering the kinds of people that contact my business, this isn’t a problem. Who looks for a software developer in the phone book? Other VOIP providers worth looking at are Gizmo5 and RingCentral.
3. Business finance. I know the debt-averse attitudes many Christians have, but I can’t say I completely agree with them. Certainly, this economic climate which we are in is causing us to rethink our ideas about debt and savings, but debt still remains a tool for businesses to use, especially to float through hard times. My suggestion here is to find a local bank that has money to lend, and use a line of credit. Currently, my bank offered me a line of credit at 4% + prime rate, which last I checked made my interest rate 7.25%. Contrast this with Chase Manahattan, a business credit card that hiked my rates up to 14.24%. Most of my views on debt and credit are based on things I read from Gary Moore. He runs this website, Financial Seminary. My best advice with this point is look to get away from credit cards, and use bank loans and lines of credit. The APR is much better, and usually, the bank line of credit forces more payment of principal every month, so you won’t be in a debt for years.
4. Credit cards. I’m going to be accepting credit cards this year, to hopefully bring in more customers that will make small purchases. I’m going to use PayPal, which will give me better control over my costs. While the transaction and discount rates won’t be as good as a merchant account, there are no monthly minimums to worry about. Also, they have a money market account that earns 0.5% now, which isn’t great, but better than 0% in my bank checking account.
Hopefully some of these ideas will be helpful to you. We will get through this year and turn a profit!
This is an excellent article from a friend of mine that I speak with on IRC. He said it was ok to share it here.
Posts
No comments:
Post a Comment