Being a small business owner can be incredibly rewarding. You’re probably doing something you’re passionate about and you have a flair for the industry. Small businesses help the economy and often give back to the community.
However, starting a small business can be difficult financially. You might find that you don’t make any profits from your small business in a long while. You could even have losses. So, it’s important to be frugal and work out how to save money where you can. Here are some tips.
No business owner wants to spend hours on invoices every day. The time you spend on invoices could be spent on other projects that bring in more money. Plus, manual invoices leave room for human error, which could cause issues with payments. However, if you use a template to create a business invoice, you’ll find that it’s much quicker and there is less room for error. Plus, your invoices will look more professional – which might inspire clients to recommend you.
Cut down on expenses
There are always a lot of expenses when running a business (yes, even when working from home. You’ll still need to pay your employees, buy the right equipment and get business insurance). So, when you’re starting out, you’ll need to be frugal. This means finding ways to cut down on expenses and keep the cost as low as possible. If your business means you travel often, try to find cheap deals on flights and hotels, and don’t take clients out to pricey restaurants. You can also try to haggle on insurance and buy your equipment second-hand.
Turn off your power
You’ll be responsible for the bills in your office space. And bills can add up quickly. So, save money by turning off all the electrics when you’re done for the day. This means lights, computers and printers. You can also save on bills by choosing an office space with lots of natural light.
Business credit card
A business credit card can be a great way to save on your small business. Most offer rewards, depending on what you spend your money on. If you’re a frequent traveler, for example, you might get reduced tickets or air miles. You could also get cash rewards. Business credit cards are worth getting anyway, as they help you to separate your personal finances from those of the business. This makes tax much easier to calculate at the end of the year. So, a business credit card could be a great way to start saving and lower your costs.
Pay yourself first
As a small business owner, it can be difficult to prioritise your own salary when you have other costs to deal with. However, you need to give yourself enough money to live. While you shouldn’t overpay yourself, it’s important to do this first. It will then allow you to calculate how much is left over to cover other costs. Your business will suffer if you don’t have enough money to get by.