Today, we live in a world that is run by massive corporations. Internet gurus and hugely successful entrepreneurs who have invested all their time, energy and finances into entrepreneurship are now in many ways running the world. All of the products that we use at home, work and school are the result of somebody sacrificing their savings and time and deciding to risk it all in a new business. But most big-name businesses that everybody knows today didn’t start out as huge as they are now. In fact, if you hear their stories, you may be very surprised to hear about how small they were when they first began.
However small it is, owning your own business is certainly one of the best ways to make yourself feel proud. Humble beginnings are nothing to be ashamed of, as this is often just what it takes to make it where you want to go. But, being mindful of your spending and taking steps to cut costs when first starting out is absolutely necessary to put your brand in with the best chance of success for the future. Read on for our top tips for saving money in your small business.
- Use Tax and Accounting Software
Most experts will tell you that doing your own tax and accounting is never a good idea if you have no previous experience. Tax is a massively important part of running your own business, and trying to do it all by yourself can leave far too much room for error if it’s the first time you’ve done anything like that before.
However, this doesn’t mean that you have to invest your money in hiring an accountant, although it’s definitely a good idea to do so if you can afford to. For entrepreneurs who are strapped for cash in this aspect, however, using tax and accounting software can be a great alternative. Software programs such as Quickbooks inventory management allow you to easily look after your business books and have all your records in one easy place for filing your tax return on time. It’s designed for anybody to use, making it the perfect choice for complete beginners.
- Run Your Business from Home
Today, home-based businesses are becoming more and more popular. With the internet making it easier than ever before for anybody to start their own company, there’s often no need to invest in an office space, particularly in the early stages. Even if you’re going to need people to work with you, the rise of the gig economy means that there are more professional, experienced freelancers than ever before who are able to work remotely to help you as you build your brand from home.
Running your business from home has a wide range of major benefits. Not only will you have the freedom of working from home, you’ll also avoid having to raise the funds for an office space. In addition, you can take advantage of tax benefits if you work from a home office, with many home-based entrepreneurs able to claim back money for expenses such as rent or mortgage, broadband and phone, or even heating and electric. Since you’re already paying for these expenses in your home, you won’t need to get extra for your business.
- Buy Second-Hand Equipment
One of the biggest mistakes that new entrepreneurs make when starting out in business is investing all their money into brand new equipment. But the truth is, buying second-hand can be just as effective, and you’ll have the added benefit of saving money. New equipment is very costly, so it’s a mistake for new business owners to go for them.
Instead, there are many ways in which you can get your hands on pre-loved equipment at a great price. Look around for businesses in your area which are having a refurb or even closing down; you’ll likely find that they are selling their used equipment on at a cut price. Used equipment that’s in great condition as it’s been well-looked after is usually just as good and has the potential to last you many years. It can be a wise idea to look for an expert who can help you check the equipment over to make sure that there are no flaws before you part with your money.
- Avoid Hiring Full-Time Employees
As mentioned earlier, there’s no need to invest in hiring full-time employees during the early stages of your business. In fact, many small to medium enterprises (SMEs) get by just fine without hiring a single permanent, full-time worker. Today, the gig economy means that there are plenty of people out there looking for freelance based work, whether it’s something that they do full-time or as an extra bit of work on the side to make some additional money.
Whether you need web design, graphic design, content creation, administration, or customer service, hiring people remotely to work on a pay-per-job basis has become easier than ever. Working with remote freelancers has many benefits – not only is it cheaper since there’s no requirement to pay them a regular wage, but you’ll also be able to choose from a wider talent pool of professionals all around the world.
- Buy Goods in Bulk
Last but not least, buying any goods that you need in bulk can be a great way to make long-term savings for your business. Whilst it might be costlier initially to purchase items in bulk, you can usually make great savings compared to buying the items separately.
Look around for anything that you could make savings on by purchasing in bulk amounts. For example, office supplies such as paper, pens, staples, and paper clips are usually much cheaper when you buy them in large quantities. Visit wholesalers and take a look online to find where you can get the best deals. Over time, these savings can certainly add up!
These are just some of the best ways to save money when starting your own small business. If you have some tips of your own to add, we’d love to hear from you in the comments.
