How To Save Money On Your Small Business
There’s always an opportunity to save money, and when it comes to a small business, your finances can be very important both early on and during your company’s existence. Some find saving money in life is easier than others, but as long as you have the tips and driven attitude, you can make savings that are going to benefit your business greatly. Here’s how to save money on your small business.
Don’t Spend Beyond Your Means
You should never spend beyond your means, both in business and in personal life.
Sure, it’s nice to treat yourself to a few luxuries every now and again, invest in a new area for your business but you need to make sure that you can support these expenditures without breaking the bank.
With business, you never know what could be around the corner, so it’s important you factor in the worst case scenarios that could happen. If you can make this investment or spend this money and still survive if something major occurred, then it’s worth doing. No one gets anywhere in business without taking risks but make smart risks.
It’s good to set the business a budget that you can spend either daily, weekly and/or monthly. If this is set out, along with an annual budget, you’ll be able to keep on top of the business’ spending habits. This ties quite nicely into the next tip!
At the same time, this doesn’t mean you should avoid using credit or options for leverage in your business. One tip you can use is to get a cash back credit card.
When used correctly and paid off in full each month, you won’t be charged any interest and you can be earning cash back from overheads for your business. This is a great way to save money and give you leverage while building your business.
If you’d like to learn about a cash back credit card I use and recommend click here!
Be Budget Savvy To Save Money
Being budget savvy doesn’t mean your business has to live a frugal lifestyle. It’s good to be wise when it comes to your money and to know when it’s good to spend and when you should be budgeting to save money.
So whether you learn how to save money on NetSuite pricing or finding a cheaper deal for your office utility bills, do your research. It was mentioned above but having a budget for your company is very important.
Make time, whether you have an accounts team or perhaps one person who oversees the budget (maybe it’s you) to sit down and go through budgets for a variety of aspects relating to the company.
It might just be the one, or you could have several departments. You may discover that one department is spending way over their budget and it’s useful to know why this is and whether it can be avoided. Sometimes it can’t, but having your ear to the ground when it comes to the finances is critical.
Cut Down On Un-necessary Costs
A lot of businesses, particularly smaller ones who are just starting out, will spend a lot of money. And even though this is required usually, you should be paying attention to those costs that might be deemed unnecessary at this moment in time.
For example, if you are running an office, stationery and operational costs can cost an absolute fortune. However, there are plenty of costs that you can cut in order to make these expenditures a little less of an eyesore on the bank statement.
Typically some businesses will buy fruit and pastries for the office every morning or have fresh flowers delivered every week. For some, that’s fine, but even though the impression is important, it shouldn’t warrant excessive spending.
Don’t be so cheap with your business that costs you time and money
At the same time, cutting unnecessary costs doesn’t mean you should be cheap with your business. A pitfall I fell into in the beginning, that a lot of other entrepreneurs do as well, is being so cheap it costs them money.
Just because you can do something for free, doesn’t mean you should. There a lot of things you can do manually for free, but it ends up costing you hours of your time.
This was a mistake I made early on with my email marketing efforts. I tried to manually deliver my lead magnet to people and I used a free email provider.
It worked for a bit until I had about 30 email subscribers. At that point, I wasn’t able to send out broadcasts to my list anymore because Gmail thought I was spamming. Also at a point of getting as little as 5 leads a day it became almost impossible to keep up trying to send out things manually.
This forced me to get started with an email autoresponder, which was a small investment compared to the massive time savings and leverage it gave me. A couple of dollars a month saved me hours of time that I could spend on more important things.
You might also want to check out my post on 9 Online Marketing Investments I Wish I Made Sooner, so you don’t make some of the same mistakes I did in the beginning.
Hire Employees Wisely
Employees are great for growing a business, but it’s worth being wise with your hiring. Each staff member should be bringing a whole heap of value and fresh skills to the company. There should also be an assumption that this new staff member will only add to the company’s growth.
You can always consider outsourcing your staff, to begin with, especially as the cost of hiring someone full-time is a serious commitment. There are plenty of individuals who will work on a freelance or contract basis and this is good for when you’re just starting out.
You might not know exactly what you’re after in a permanent member of staff yet. Make sure that when you are ready to hire someone, you know exactly what you want and what you can offer in terms of a salary. Take the recruitment process seriously and trust your instincts. They need to fit in with the rest of your company, just as much as they need the skills to carry out the tasks required.
There are plenty of ways to save money, but hopefully, this gives you a little bit of guidance and advice on where to start. Saving money is always going to beneficial in business, and you should always look for ways to cut the costs without damaging your company growth potential.
Did This Blog Help You? If so, I would greatly appreciate if you could comment below and share on Facebook
Facebook: facebook.com/coachmikemacdonald
Email: [email protected]
Considering Starting a Home Business? Apply For A Free Coaching Call Here
“I help coachable and teachable professionals become Financially Free and Live Full Time! Helping you create a better tomorrow through a better you!”
P.S. Want to ATTRACT MORE LEADS & MAKE MORE SALES in YOUR Business? Download My FREE 37-Page E-Book Exposes The ‘Marketing Framework’ To Attract A Never-Ending Flood of BUYERS for ANY Business Fast! GET INSTANT ACCESS HERE
If you enjoyed this post on How To Save Money On Your Small Business, please retweet and comment below
