Starting, and maintaining a business can be hard work. You dedicate all your time and resources to it, and even then there are various pitfalls that can ruin your plans. For your business to succeed, you need to be smart with your money. Here are some valuable money tips to secure the future of your business :
- Time is Money
There are only a set number of hours in a day, unfortunately. That’s why you should value your time highly, and ensure that you’re being efficient and productive in all you do. As the old adage goes; “work smart, not hard”. There’s no reason why you can’t do both though!
- Be Sensible with Purchases
Think about what’s really necessary for your business. That pool table might be fun, but if it means you can’t buy new computers or desks it’s probably not a good idea. Try and save money on essential purchases todon’t overpay for fancy extras or gadgets you don’t need.
Don’t put all your eggs in one basket if you’re overly reliant on one source of revenue, such as a particularly big client, you run the risk of losing everything if they change their minds. Look for new business at every opportunity for extra peace of mind and security.
- Stay on Top of Your COGS & Margins
COGS is an acronym that stands for “cost of goods sold”. This relates to the cost of labour, materials, and overheads. It’s essential you stay on top of your margins and know, for instance, how much every ingredient costs and what the margin is if you’re running a restaurant.
- Cut Down on Non-essential Energy Use
Turning off lights, appliances, and machines when everyone leaves for the day is a super simple, yet often overlooked way of saving money. It might not seem like much, but if this happens everyday it will soon add up. Make sure employees are switching off their computers before they leave.
- Keep a Close Eye on Accounts & Bookkeeping
Make sure you keep accurate records and pay close attention to them (as well as, of course, hiring an accountant and a bookkeeper). You should personally know where all your money is going as well there are various online tools you can use to help with this.
- Make Use of Freelancers and Contractors if Possible
Using freelancers and independent contractors is a savvy move, since they’re comparitively simple to hire and you won’t have to pay health care, pensions, paid leave, or various other benefits. Be careful not to overly rely on freelancers though, since they may have other commitments, but for one-off jobs they’re a great option.
- Don’t Overpay Taxes
Pay what you owe, of course, but make as many claims as possible to legally take advantage of the tax system.
- Value Good Employees
Although you might be wary of overpaying staff, if they’re good at their job they’ll likely save you money, compared to the costly expense of recruiting and training new staff should exisiting ones leave.
- Consider Remote Work
While it’s important for employees to be there in person for some meetings and conventions, allowing them to work from home can save travel expenses and utility costs, and help improve morale.
Now you’ve heard a few tips, it’s time to put them into practice. With hard work, and smart decisions, you can help take your business forward and go from strength to strength. Good luck!