I used to run an international business, and we bootstrapped it from the start. Working constantly to a tight budget is hard. A huge component of our cost base is travel and related expenses. I'd like to share some of the most effective tips I have on making sure that you reduce unnecessary spend. Breaking away from the rich man's spending habits acquired in corporate America can be hard to do. Knowing that every dollar saved on travel is another dollar to the bottom line should have you reappraising this pretty quickly. While the medium term goal is to relax some of these over time, they are nonetheless the sorts of disciplines I believe are critical to optimizing value from any travel.
I used to regularly travel to New York for work. I stayed in hotels at $350-$500 per night. Most corporates will be happy to pay that--well not exactly happy--but in the drive to have standards and policies, they normally end up picking a set of hotels or a chain that you are ok to stay in.
Now when I go to New York or Boston--another very expensive city for hotel rooms - I make sure to always check AirBnB and HomeEscape. When hotel rooms in Boston were $400 a night (I was travelling last minute) I found a great little AirBnB for $125 a night, which was in a nicer area than most of the hotels. I've done the same in New York, and recently got a 4 star hotel for just $100 plus taxes through HomeEscape.
I don't acquire points, miles or any type of loyalty bonus, but I save my partner and myself a chunk of change to reinvest in our business activities by being agnostic on supplier. With services like HomeEscape you can over time learn which hotels are which due to their business descriptions, and I know some travelers who know with certainty the hotel they are booking in to.
I am amazed how many entrepreneurs say "I just use Uber" when discussing their business travel. Yes, I use Uber and other ride shares. A lot. We all know the benefits. But if you are managing your time and your cost in New York, you really need to be down on the Metro. Many cities like Boston also offer free shuttles from the airport into the city. So get your Uber from downtown not the airport if you really need to. Taking the time to work out the optimal cost/time equation on the various travel options is really important.
If you plan your travel right,you can save a lot of money and time by walking between meetings, and planning routes. I know it isn't easy, but I've generally found that people can accommodate your plans if you tell them you'd like to see them at 11 as you finish with your other meeting round the corner at 10:30. So I make sure I don't overpack, so that I can walk quickly and arrive without looking like a sweaty mess from carrying excessive luggage. There is a certainty to walking that you don't get with any other transport.
I live on the West Coast. If I am flying to the East Coast, I do so overnight. This saves me a night of hotel and dining expenses away from home. Sleeping in economy is not any fun, but again the rewards are there in the savings. I've always been pretty horrible at working on flights anyway--I just don't find the setting conducive to anything more taxing than reading, so it suits me well.
Free breakfasts in hotels, grabbing free coffee or lunch at your client's co-working space, free cocktails in the hotel or airport lounge are all things to plan for. You can end up spending a lot more money on a business trip than you'd care to admit to yourself--justifying it all with your former corporate lens, and your $50 or $75 per diems. I have hung on by my fingernails to my British Airways silver executive card. It gets me free soup, salad and a glass of wine in every American Airlines lounge, and free noodles every time I fly to Asia with Cathay Pacific.
Allowing for travel breaks, note taking and comfort breaks, I believe your target for a day in any city or town needs to start at five meetings. I've done more, but it is tough. If you are properly planning and doing your follow up, that is likely 20-plus hours of work in total per travel day (research, meeting time and follow ups).
I see some people not filling their travel days. I just don't understand this. Even if you need to meet with people who are at best tenuous opportunities for your business, it is still an opportunity to practice your pitch, to see what resonates, to hear what is going on in a related field, or to reconnect with a former colleague to get them out there cheerleading for you.
I can't think of a better time to be using my acquired points for hotels and airlines than now. I have saved hundreds of dollars on free hotels and reduced airfares by carefully using my accumulated points and miles. Using them now is truly converting them into cash for the business. You do more with your budget. Even a lot of entrepreneurs think of these as being theirs, for personal use. I think they are best used in helping fund more growth opportunities with your firm.
No comments:
Post a Comment