7 Ways Small Business Owners Can Save Money
Looking for new ways to save money as you scale your business? You're in good company, and many business owners post-pandemic are looking for ways to cut costs and save money. We've seen a lot of costly mistakes in our day, and we've compiled a list of 8 simple business money-saving tips you can use.
1.Pivot, Pivot, Pivot
Always be on the lookout for new opportunities to serve your existing client base or expand into new markets. You don't need to reinvent your business each time; you only need to reframe what you are currently doing.
2. Keep costs practical
Many businesses mistake investing too much money on overhead costs like flash office spaces and equipment. Rapid growth will require a functional office space and a more extensive staff but consider saving the pool table and coffee machine for when the cash flows.
To avoid incurring significant capital costs, consider giving your employees an allowance for using their equipment rather than providing them company-owned computers and phones. Plus, people tend to take better care of a device they own, so you will also save money on repair costs.
3. Track Investments
Many business owners invest a significant amount of their own money to get their company up and running. Therefore, it's essential you must track all the money you put into your business, as you'll be able to take that money back out of the company tax-free in the future. Work with your outsourced bookkeeper to make sure you have a system in place to track these contributions to your business.
4. Work with a Tax Accountant
While the upfront cost might be uncomfortable, a professional tax accountant can help you avoid adverse tax consequences down the line. In addition, advice from your tax accountant can help ensure that you are taking advantage of tad deferral opportunities and eligible tax credits.
5. Invest in Tools
Move away from manual spreadsheets and invest in tools and software that help you run your business. Take advantage of free trials and test multiple programs to find the tools that best work for you.
6. Document the Process
Documenting your internal processes help identify any inconsistencies and spot where you are losing money. Having a documented process also helps reduce the risk of rebuilding processes if employees leave suddenly.
7. Network
Make friends, network, ask for help! The business community can be more supportive than you may think. Other small business owners often share resources, advice, and even clients. Similarly, consider opportunities to help out other business owners as we build each other up.
As a business owner there’s never enough time in the day, so when you spend your time wisely, you’ll not only be happier and more focused, but you’ll end up building a leaner, more efficient business.
