Saturday, October 01, 2005

Your Home Business: Turning Pennies into Dollars

Your Home Business: Turning Pennies into Dollars
Copyright © Stone Evans, The Home Biz Guy

Henry Ford taught us that to simplify the
manufacture of automobiles, that the best way to
do so was to install the assembly line. That one
change revolutionized the auto manufacturing
industry permitting the industry to build cars at
a cost whereas the average person could afford to
buy one.

The lesson we should take from this is that
having the ability to improve the process of
getting the job quicker and cheaper, without
compromising the quality of the job being done,
will help catapult the person who simplified the
process to the top of his/her field.

Pennies saved in your home business can turn into
dollars at the end of the day, and dollars can
quickly multiply into hundreds or thousands of
dollars over time.

Doubt me if you will, but let me ask you a
question. Do you think a saving of two fifths of
a penny could make any real difference in the
profit margin of a home business? Of course
the right answer is "it depends on how many
transactions are done in a year, utilizing the
savings of the two fifths of one penny."

You only have to think back a couple of decades
to really appreciate this question. Do you
remember the nut that lived and died in a Las
Vegas hotel room? You know the one who was a
billionaire, and was so worried about germs that
he died of starvation? If you guessed Howard
Hughes (1905-76), pat yourself on the back.

Now Howard did not make all of his money on his
two fifths of one penny. He did however make a
ton of money from his two fifths of one penny. It
seems Howard owned a can manufacturing company.
And one day, Howard's team figured out how they
could make one minor change in the design of
their food can to reduce the amount of tin
necessary to make a single can.

As the story goes --- if my memory serves me
correctly --- the reduction in tin usage equaled
a saving of two fifths of one penny per can.
Howard --- being the really smart businessman
that he was --- decided that he would not be so
greedy as to keep all of the savings for himself.
What Mr. Hughes did do was to keep half of the
savings for himself, and give the other half
to his customers. The incredible thing about Mr.
Hughes decision is that by saving his customers
an extra one fifths of one cent per can, he
managed to take more market share away from his
competition --- netting his company an additional
and substantial portion of the total market share
in the canning industry.

Let us return our thoughts to your home business.
Have you ever gotten the feeling of excitement
--- when you read something or thought of
something --- that you could not wait to
implement this new idea? This could be one of
those moments...

In every home business, there are certain
processes that we do over and again. Sometimes it
may be possible to trim the time or expense of a
process which in turn will add pennies or dollars
to your bottom line. If it is a process that you
do hundreds or thousands of times per month, then
your savings will multiply into hundreds or
thousands of dollars in monthly savings.

Imagine what running a home business was like
BEFORE the computer...

Before the personal computer, we had to hand type
all letters and invoices. Now, we can setup a
letter or invoice that we send out quite often,
and we can save it in our word processor so
that when we need to use it again, we can print
it quickly and efficiently. There is no longer a
need to type the document again from scratch.

The computer has simplified our business
communications and has provided us the
opportunity to reduce our costs of doing business.

Think about all of the other processes that the
computer has enabled us to do for far less
expense than what we could in the past.

In this case, the computer is a tool that permits
us to save time and money.

So, my challenge to you is to begin examining the
processes in your own home business and look for
ways in which you can save yourself time and
money. It is far better for you to contemplate
on this matter than it is for me to do so for
you. Simply put, you know your business better
than anyone on the planet does. Therefore, you
are in a better position than anyone to find
those extra dollars that will decrease your costs
and increase your profits.

The extra pennies and dollars you could extract
from your business could spell the difference
between success and failure for your home
business enterprise.

About The Author:
Stone Evans Will Personally Build A Money Making
Website Just For You That's 100% Ready To Take
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