Cutting costs while building our business is the biggest challenge we face. As entrepreneurs, it is our job to cut costs and charge as much money as possible without sacrificing our business. It isn't easy to do in this business because most of our expenses are through a municipality or a utility company, but the best way to defend against rising utility costs is to use less. Here are five ways you can help to cut costs for your own store:

1. Upgrade to New(er) Equipment

There is no better way to save money in this business than to set your business up with new or newer equipment. Newer equipment will use less energy and cut repair costs while giving you more up-time on your equipment. The more up-time, the more money you make. Customers will be more satisfied because they will not have to wait to use equipment because it is broken. Also, customers are willing to pay more money to use new equipment. This is a win-win situation. New equipment can be financed and all of your savings and added revenue can cover the monthly note payment.

2. Save on Rent & Labor

Other costs such as rent and labor are fixed as well. In some cases, a landlord will renegotiate your lease. I have not been successful in renegotiating my lease, but others have. It is worth a shot. What is the worst thing they can say, "no"? The costs you need to watch closely are insurance, supplies, and parts. Your insurance policy is renewed every year. Every year, you should be shopping at least two other insurance companies for comparison. It is important to shop the parts and supplies you purchase on a regular basis. Suppliers will typically raise their rates twice per year.

3. Save on Supplies

I am constantly looking for better ways to save money on supplies. I have recently switch floor cleaners from Fabuloso ($8.97 per gallon) to a more economical brand, Festival ($5.97 per gallon). Both products have the same scent and concentrate. Also, stainless steel cleaner is very expensive. I have substituted cans of Sheila Shine ($8.95 per can) for generic bottles of baby lotion ($2.39 per bottle) from Target. These bottles will last longer than a can of stainless steel spray and they smell better. Who doesn't like the smell of a baby's bottom? Currently I am looking for a new brand of bleach. The Home Depot generic brand is no longer available. The price was $1.55 per gallon compared to Clorox at $4.59 per gallon. These items and much more are very easy to shop for.

4. Use Technology

I have downloaded an app to my cell phone which allows me to scan the bar code of any product and it will shop the internet and let me know what other companies are charging for the same product. The internet is the largest resource of information and it is right at your fingertips. Complacency is the enemy in this business. If you become complacent, you will find yourself paying more than you should for these items. We are all in this business for one reason...to make money. It is our responsibility to spend as little money as possible while making as much money as possible. One day you will want to retire and sell your coin laundry. When that day comes, your business will be valued higher if you cut your costs. For every dollar you save, your business value increases by about $4. On the flip side, I would never cut corners on my equipment.

5. Go Big or Go Home

I have seen store owners purchase smaller capacity machines because they don't want to spend the money. In the South Florida market, you need a lot of large machines to compete. Customers love the big machines and that is your edge over the apartment complexes. I want to own the store that caters to large families, not the store that caters to single person households. These large machines are your money makers. Every year I am seeing a trend of bigger and bigger machines being installed in stores. Eighty pound washers are no longer the largest washers, now the distributors are installing one hundred twenty five pound washers. If you are not sure the size or the quantity of washers you want to install, your distributor should be able to provide you with a spreadsheet. I use the "go big or go home" philosophy which means, if you are on the fence when choosing your equipment mix, go with the larger capacity.