Reference no: EM133087631

Put a comment in those two post the Professor asked me to comment to our classroom post.

1. Interns is a cost savings due to not having to provide total cost of benefits with direct cost of just salary. According to the U.S. Bureau of Labor Statistics website, salary wage costs $26.85 per hour worked or 69.0 percent of total compensation, while benefit costs were $12.06 or 31.0 percent of total compensation. The average cost for health insurance benefits was $3.09 per hour worked or 8.0 percent of total compensation cost savings of $6427/year. 

A cost savings to consider when setting up a retail store would be to consider an online platform versus a brick-and- mortar storefront. There are free sites to set up shop such as JotForm. To set up shop in the cities, such as Minneapolis, costs an average of $29.77 per square footage. A decent size store would be about 1000 square feet which would be a cost savings of $29,770.00 annually.

You want to target sponsors that believe and contribute to grow businesses in return. What we can do is help promote by displaying their company logo or adding their logo to our products. By having sponsors, they don't have to sponsor monetary wise, but they can donate products or like tags for our products or help promote our business. At the end of the day, it's still a cost savings to our company.

We can cut costs by doing some piggyback advertising. For example, when we send out invoices to customers or when customers purchase products, we can include a flyer in their mailer or along with their receipt. By doing piggyback advertising that can help cut costs on average of $5,000.00 to $10,000.00 per month. Another way we can save is to advertise on social media which will also cut costs on advertisement. 

Purchasing previously used equipment or machinery will help reduce the startup cost for business. It will still get the work done for a lower price until the business can generate enough profit to purchase newer and more updated equipment that will positively affect the efficiency of use of those set up equipment. This will save on average on startup costs of $10,000.00 to $20,000.00.

By being more conservative with the startup costs it will provide our business the opportunity to jump start because of lower debt. We can focus on using our money on actual items to generate more income.

2. The following are some ways that our small business will be able to save money;

1. We will save money by purchasing our products in bulk, this is because things are cheaper when bought in bulk. By doing so it will save us thousands each year and we will have more money to our disposal.
2. Another way is by using software tools by ourselves. This will be a lot cheaper instead of us paying someone to create our website and maintain it as well as our other online platforms we will be doing it ourselves by using software tools. By doing so we will be able to save at least $250- $500 dollars a month.
3. Another way our business will be saving money is by storing our inventory at home instead of renting a warehouse. Depending on the size of warehouse we would have to rent, we will be saving up to $5000 a month.
4. we will be doing everything by ourselves, from packaging, processing our inventory, shipping our products to marketing. By doing so we will be saving enough money and we will not need be needing employees. Depending on how much we would be paying an employee, we would be saving up to $30,000 a year.
5. By reducing our advertising cost by using the most effective advertisement. We will maximize our word of mouth marketing. We will do this by making it easy for customers to review our products by nudging them to towards leaving their reviews and make sharing our content easier.
6. We will also be able to save money through comparing prices on shipping. We will be able to negotiate better terms that will help us save every penny we can.

These are just some ways that will help us save money.