Last Updated on Apr 8, 2020 by James W
Are you self-employed and cringe whenever you see the outgoing monthly expenses? If so, you’re not alone. Thousands of small business owners around the world start up each year and many struggle to make ends meet in the first twelve months. Cutting back on unnecessary costs is a must to help you both stay afloat and motivated. Here are a few not-so-obvious ways to save money for your business.
Rent a Car
When your new business starts, you may want to buy a new car for meetings, deliveries and a whole range of other reasons. But a new car has a costly upfront payment. Instead, perhaps it might be better to consider alternatives. You can lease a car for your business which cuts the costs considerably. And leasing gives you the flexibly to have a set of wheels when you need them rather than a new car sitting outside all year.
Build a Solid Team
The team you create will play an integral part in the overall success of your business. A happy, inspired and motivated team always performs better than the employees who work for payday. And when they perform better, your company runs more efficiently. Building the right team takes time. You need to screen out the stars in the interview process and give enough incentives throughout the year to keep them inspired.
If it turns out you have a lot of menial tasks that eat up large chunks of time, perhaps it may be better to outsource. Various tasks can take up precious time from skilled employees who could be doing something more productive. An excellent solution to this scenario would be to outsource. Pay an independent contractor to do the smaller tasks so you can focus on the large priorities at hand.
Being frugal is the easiest way to cut costs. Instead of buying something brand new, consider used. Search online and take advantage of discounted prices. Examples may include specialist equipment, printing supplies and even office furniture. You can also use free software on your computers and recycle paper rather than buying new reams. There are a million ways to save a few pennies here and there that add up to something much more significant at the end of the year.
Consult an Accountant
Everyone has to pay tax to some level as a business owner. But quite a few people are paying too much tax. There are various tax deductions available for specific situations. Make sure you’re aware of what you have to and don’t have to pay. The money saved would probably outweigh the costs of a hiring a professional. And if you’re paying too much, you might even be able to negotiate a better rate with the local authorities.
Saving Money in the First Few Years
The first few years of a business are the most critical. As a new business owner, you should be looking to cut costs at every available opportunity. Learn to be frugal and only spend on the essentials. Lease a car rather than buying a new one and learn about any tax deductions you’re entitled to. Follow these suggestions, and the chances of your business lasting are much higher.