ForumsStarting a Business

This is a great time to renegotiate service contracts with your vendors and suppliers. Go through your income statement item by item to see if there are costs that can be restructured.

Start inside your business - i.e. your phone and internet services, office supplies, rent, equipment leases, dues and subscriptions, etc, etc, etc. Look for ways to not just reduce these, but to position them more favorably for your firm (e.g. get more for the same costs).

Then look outside your company - marketing and advertising, inventory purchases or trade goods and service purchases, shipping or any and all costs item. Look to renegotiate with these vendors and suppliers. They are also feeling the pinch in this economy and I can guarantee you that they would rather keep your business at a lower rate than lose you all-together. Should one of these partners not want to renegotiate, then this is a great time to shop around for a new vendor who is willing to help you as you help them. Lastly, think long-term.

When you renegotiate try to create the best deal with the longest term possible. This not only shows this partner that you are in this for the long haul, but will better position your company when the economic recovery begins and prices and costs start to trend back up.