When you are a small business, it pays to learn how to save money. The money you save can be put to good use later on. You can put it towards some smart investments like property, investing in your team, or simply have a stash of cash for a rainy day.
There are a number of smart was to save in your small business:
Open Source and Cloud Computing
There are very few start-ups that don’t need some sort of software. It might be bookkeeping, word processing, presentations, or even your accounting. For almost everything you need, there will likely be an open-source or cloud version.
This means that you do not have to buy expensive software to run your business well. Switching to cloud vendors often means everyone cuts costs and makes savings.
This is a strange one since, currently due to the pandemic, most people can’t attend meetings at all. But, once the pandemic is a distant memory, offices will open up again. Meetings, although some can be vital, take up a lot of time. Every person in the room is being paid to be there. How many hours a week are people spending on meetings?
Is each of the meetings really necessary? How much money does it cost?
If you don’t have employees, but you personally spend a lot of time in client meetings, is there something you could do to reduce those hours?
A great way to cut down the amount of time you spend in a meeting is to make sure that instead of spending ages sharing information, you send information in advance and cover questions or updates only.
Or, try to build a speed meeting program, where you only spend X amount of time on each topic. Trim the fat, and you’ll save the cash.
There is a certain joy in being able to hire a range of freelancers. They can take care of your accounting, your travel bookings, your social media. You name it they can do it. And, depending on where you hire your freelancer from, they can be brilliantly priced and worth more than the investment.
There is a moment where many small businesses need more hands-on-deck, but don’t really stretch to a new full-time member. Outsourcing here is a smart move.
Here are some great websites that you can use to hire a range of freelancers:
Before you jump into hiring people, it is important that you make a list of all of the tasks that you want them to take care of. This will stop any miscommunications, and give you a good idea if the outsourcing is worth it.
If you are saving, for the sake of saving, it can often feel a bit…pointless. Even though it is a good thing if you have savings, it can still feel like there is no direction. So it is important to think about what you want your money to do for you. Do you want to save a bigger deposit so you can get the best home loan available? Perhaps you want to have a once in a lifetime holiday.
Whatever it is, make a clear note of it, and setting goals is the best way to reach them.
When the going get’s exciting, it’s time to write some press releases. Learning as much as you can about public relations and how to tell a story and promote your business. Public relations can be a steep learning curve, but if you have a passion for your industry and your business, you can go far on a shoestring.
Make friends with influencers, writers, and editors in your sector and ask if you can keep them updated on what you are doing.
Or don’t buy it at all. If you need a desk, you don’t need to have a brand new one – not right now. Opt for picking up items from Freecycle and Craigslist, or really cheap items. Most of the time, we don’t need what we think we do, and we can get by with cheaper items, and saving the cash to put towards something else in your business.
That goes for materials for your business in most cases too.
These are essentially going to save you money on the tax bill but also take advantage of as many tax write-offs as possible. It is a good idea to talk to a tax professional if you haven’t had to deal with taxes before.