It’s critical a business finds ways not just to profit but to save. While increasing sales is a way to make your business profitable, the results are not always in your control. For this reason, you must come up with a saving plan, as you can control what you don’t spend.
Why should you save?
Saving money is critical for a business — especially one that is not bringing in enough profits.
Saving also comes in handy during times of crisis or emergencies. For example, imagine your business office catches fire and most of your equipment get burnt, and unfortunately, you already used the profits from the business. Will you close up the whole business or will you find a way to buy new equipment? This is why you need to have some money saved.
Also, saving could help you with your plans for expanding. Business owners usually dream of expanding their business. This cannot happen overnight, and it sure cannot happen with no money. With savings growing every month, you can eventually manage to make your business as big as you desire.
Tips for Saving Money
There’s lots of different ways to save, but they might not all be right for you. Start with these five tips for saving money as a startup business owner:
Use Price Tracking Apps and Buy in Bulk
If you want to save, then you have to take advantage of every little opportunity that presents itself. Never assume that an item is very small and therefore you will only save little money — every cent matters. Use apps like Ebates or browser plugins like Honey, to get alerts whenever the prices of certain items fall.
After getting an update that the price of an item has fallen, you can purchase that item in bulk to save. But only buy what you know you’ll absolutely use.
Hire Employees Wisely
While it is true that you have to have money to make money, at times you can use less money. For instance, when hiring, you can go with the employee that has a set of skills and can do various tasks, so that you save yourself from using a lot of money paying many employees. Additionally, you can hire part-time employees or freelancers, since they are cheaper than full-time employees.
Purchase Used Equipment
Having brand new equipment for your business can be fulfilling, but it won’t save you money especially if you are just starting the business. You can decide to find equipment from trusted sites like eBay or purchase them from trusted people. However, just because you’re buying used doesn’t mean you have to buy something that is very old or in bad condition. You need to ensure you purchase functioning equipment. Also, make sure the place from which you buy, you can return it if it has problems.
Save in Interest-Bearing Accounts
When you save your money in a bank account, you give them funds to run their business and for that, you need to gain something as well. Therefore, anytime you want to save your money in a bank account, ensure it is an interest-bearing one. Also, you need to do a comparison of banks and their interest rates, then choose the one that bears the most.
Reduce Unnecessary and Extra Costs
You could be wasting tons of money on unnecessary expenses. For instance, delivery fees for purchased goods are a waste of money. If you are buying a few items, you can always pass by and pick them by yourself instead of paying the delivery fee or meet the minimum purchase amount to get free delivery.
Additionally, you could be wasting in other ways like having a machine connected to power when it’s not in use. This will definitely increase your electricity bill, costing you money. Also, using power saving bulbs can help save part of your lighting bill. These small changes add up to big difference.
You also need to slash out the discretionary spending. One mistake that most business owners make is waiting to save on the big money while ignoring the little opportunities, and this should not be the case. Whenever you can save a few dollars, do it, even if it means doing some of the tasks yourself.