Every dollar you save in running your business is a dollar that can be re-invested in building it. After all, isn’t that truly the bottom line?

Before you can begin cost saving, however; you need to understand how much you’re actually spending. In Get Growing,  Dale Wilton and Kyle McNamara suggest you start by building a cost-management system:

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“It can be as simple as a tally sheet or as complex as sophisticated, automated information-management systems.”

By tracking what you’re spending – from your time to gas, meals, supplies, Internet service or rent – you can begin to plan, analyze and make decisions that can save you money.

Once you have a better idea of where your money is going, Wilton and McNamara offer up six ways to save:

1. Request for quotes: Competition is the lifeblood of capitalism, so why not make your suppliers compete? Create a request-for-quote process that outlines the goods or services you need, send it out via mail, fax or email. From the responses, narrow down your choices to the top two or three but don’t make a decision solely on price – make sure the supplier you choose is also reputable.

2. Increasing buying power: Big suppliers often give discounts to big clients, but what if you’re small? Team up with other small businesses that offer non-competitive products or services similar to your own – for example, share advertising space, mailing costs or promotions with other local entrepreneurs.

3. Bartering: It’s one of the oldest ways of doing business – trade your product or service with other businesses whose products or services you need.

4. Discounts: Again, teaming up with other businesses, associations or buying groups can help you save. And surf the Web for cheaper alternatives elsewhere.

5. Outsourcing: If your business is seasonal, you may want to consider hiring staff or leasing equipment only when you’re at your busiest.

6. Dare to compare: Always ask questions – your advisors may be able to give you a sense of whether you’re paying more than the going rate. And ask industry associations for benchmarks to help you gauge costs.

What successes have you had negotiating with suppliers? Do you have your own tips to share?