Money Tips for New Businesses
By Space Coast Daily // March 12, 2020
Small businesses face a lot of challenges, and, as you would expect, many of those challenges come back to the simple issue of money. If you want to make money, you need some starting capital. It can be hard to get over that initial hump.
Small businesses need to take particular care to keep their customers happy because recovering from mistakes is hard when you are not a ubiquitous brand.
They also need to keep their employees happy because they don’t have cash reserves or human resources reserves to tide them over when things go wrong.
Taking some steps to save money without impairing the functioning of your business can go a long way towards keeping people happy. Let’s take a look at some of the options that are open to smaller companies:
1 – Work from home if you can
Instead of renting an office, try to work from home. That could save thousands of dollars per year even if you’re just renting a co-working space.
Overheads can pile up quickly when you’re renting office space. If you don’t have a team of employees then you probably don’t need a full office. Let your employees work from home, and rent a meeting space when you need to use it.
Depending on the tax rules in your part of the world you may even be able to claim a tax break on using part of your home as an office.
2 – Purchase Second Hand Equipment
Keep your eyes open for large companies in your area selling off their tools. You might be able to buy them second hand. A lot of companies sell second-hand office furniture, computers and other office goods too. They’ll be far less expensive than brand new items, and should still be more than up to the job you need them for.
Often, you can get business-grade goods for less than the cost of consumer products when you buy used, and the quality is higher.
3 – Work With Other Businesses for Marketing
Get networking. Talk to other businesses in your area and come up with ways that you can work together on marketing. You will save money and both benefit. Try to find a business that complements yours but is not a direct competitor. A vet and a dog walking service could work together, for example, or a copywriting service and a web design agency.
Host events, promote sales and barter for services with other companies. Sometimes your efforts won’t work out, but working with another company is low risk and can pay off a lot of the time.
4 – Don’t Be Scared to Outsource
Your time is valuable. It can be tempting to do everything yourself, but it’s not always possible. Why waste 20 hours doing something that a qualified person could do in two?
Sometimes, it pays to hire someone that can do a job for you, so that you can focus on the core of your business. That way, you’re only paying for ‘working time’.
Bookkeeepers, SEO agencies, even customer service agents or virtual assistants can save you a lot of time.
5 – Yes, Accountants Are Worth It
Spending money on an accountant is worthwhile for the reasons mentioned above, and also because they can help you optimize your budget and save you money on tax according to Casey Ryback the VP of TNL Car Title Loans.
Hiring a full-time accountant is expensive and isn’t always the best way to go, but you can find outsourcing accountants that will give your business a ‘health check’ and that you can come back to every tax year to make sure that you are on track.
Spending a little money on an accountant could well pay for itself many times over in tax savings, time savings, and peace of mind.
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