Taking advantage of minimising expenses in a credit crunch

[Guruju]

Hi All

Thought I would share my experiences in making the credit crunch work for me to try and weather any bad economic storms ahead.

Despite all the doom and gloom there is still credit available out there, even to a sole trader like me, if you have a good credit history and have been self employed for a few years. Here's a few of the strategies I have undertaken as part of my refocus for 2009. It may provide food for thought or prompt you to see if you can be smarter than the banks etc

1. Car Smart. I have a 4WD that is paid for and used for business. I have taken advantage of the car crisis and some of the nifty deals car dealers have on and bought a brand new car (sports wagon to accommodate my 4 dogs) that was on a great finance deal and specked up to a greater value than the price I paid. The sale of the 4WD will release substantial dollars that can be put into the business to smooth out cashflow if things get tough. Plus the new car has lower running and insurance costs and is under warranty for 3 years - which the 4WD didn't have - saving on service and repair bills (4WDs are very very expensive).

2. Bonus deal on Woolies Everday Rewards Credit Card. I cannot claim credit for this, it was the Barefoot Investor on his website. Basically apply for a card then use it to pay for purchases from Woolies and Caltex and earn points. Clear off the balance each month (essential to make this work in your favour) and every 4 months get a store card from the points accrued to spend on purchases at any Woolies, Dick Smith, Caltex or Big W. I transfer the amount I would have spent to my online savings account to rack up interest until the credit card statement comes in requiring payment. It's like Woolies paying you to use their money - marvellous.

3. If you tend not to pay off your credit card(s) make this the year you search for a really good deal on balance transfers - I got 6.99% on the life of the balance transfer which was better than the 20% I was being charged. Watch out for the 0% interest on balance transfer offers as these may only last for 3 to 6 months and not the life of the transfer. Only take this kind of option if you really can pay it off in the time period allowed for the 0% offer.

I did all the above in a week, not problem despite a credit crunch. I feel so much better about 2009 as I have radically reduced my car costs; got extra cash from the sale of the 4WD; saved $6k a year with the balance transfer offer and Woolies are virtually paying me to shop with them.

So don't shrink back - go out there and see what deals you can get done as everyone still needs to do their bit to keep the economy going so people with good credit are still most welcome.

Anyone else have any good ideas for ensuring their sustainability in 2009 - I'd love to be inspired by other people's stories.

Cheers

Julia

[sam_leader]

Some wise words there, Julia. I reckon as belts tighten further, thrift is going to come back into fashion in a big way.. it's about time if you ask me.

Thanks for sharing these great tips!

Sam

[Financial Redress]

What about staff ? Starting off and want to get someone good on board, but worried about revenue visibility to support it.

I want to be a couple of steps ahead, but at the same time need to cut my cloth. Any advice appreciated.

[Elma]

Here's another way of cutting costs for businesses: Take advantage of all the free ways of advertising your business online through social networking. It can be time consuming but the results are worth it.

[Burgo]

Recession proofing your business is just good business common sence. Maximising your profits and minimising your costs WITHOUT jepadising the productivity of the business.
Look at ways to maximise your sales with your existing customers, add ons, and minimises your costs. Are there more efficient ways I do my business. Do I have the right staff, or have I more staff than I actually need. Look at the performance of staff.
Am i purchasing at the best price for the quality I need.
Am I charging the right price.
Use your customers as marketing tools by getting them to rave about your business.
we could go on for hours , but the one i find interesting is are you paying too much tax. Look at minimising your tax legitimately, there are ways because I did it for over twenty years, saving me heaps.
Just think about what you do and how you do it, and where you spendyour earned money, wisely or unwisely.

EVEN IF UNEMPLOYMENT GOES TO 8% THERE WILL BE 92% EMPLOYED, where is your market with the 8% then you have a problem.