How Can I Keep More Money?

When you start building your small business, it’s easy to get overambitious right off the starting line and spend all your working capital to look like a real business.   

“Strike while the iron is hot,” as they say.  

Still, you need to reserve a chunk of your finances for growing your business. You don’t want to end up paying for someone else’s bills and leave your business scouring for the scraps. 

By creating smart spending habits from the start, you won’t have to work as hard to put the same amount of money in your pocket.  You will not be obligated to pay someone else’s bills. You can pay your own bills and even have a profit left over.  

It’s a good rule of thumb to spend only on what you truly need. Keep track of your finances, and avoid overspending. You shouldn’t make the expenditure if it is not making you money in return.  You will also want to save enough cash for future expansion. 

Be sure to monitor these areas.  It is easy to find yourself paying out  too much overhead for:

1.) Communications: How much do you spend on telecommunications? How much data do you consume each month? Do you need a fax line, a landline, or merely a dedicated cell phone to service all your business needs?  Communications can eat up a large chunk of your budget, so choose wisely. 

When was the last time you called your cell phone provider and asked if you could get a better deal? Cell phones have become so popular that most people pay their monthly bills without thinking twice and wouldn’t even consider alternatives. But if you call your carrier and have them review your service plan, you can possibly save $20 – $50 a month. That adds up to $240 – $600 a year for the same or better service. The same strategy applies to your cable, internet, and insurance billings, as well. Companies are very competitive these days; you can make that work for you!

2.) Rent: Setting up your very own office space is one of the most exciting parts of starting a business. However, you will find that paying for rent and maintenance could be too much for your fledgling business. Shop around for commercial space you can afford, seek out executive office suites, warehouse space, or consider setting up shop at home. Managing a home-based business is becoming popular nowadays since you can enjoy tax advantages and avoid paying office rent. From your home office, you can work your way towards a storefront if you learn you truly need one; remember the extra overhead must generate significant additional revenue to be worth it. .

3. Employees: Hiring people to work at your business can get expensive. There are many unseen costs, so factor them in your budgeting.

A great workaround for this is to outsource specific tasks to freelancers, virtual assistants, or contractors so you can pay for the services you need and avoid paying extra for the overhead. 

When it comes to managing your business’s resources, it’s important to reduce overhead costs using a few practical and essential solutions.

You always want to make the decision that gives you the best value for your money.

If the expense makes you more than you are spending, that is called profit.  You are getting into business to make a profit, so sometimes you need to spend money to make money.  Just check your numbers first.  

If you need any help with managing your business’s finances and maximize your profitability, get help from the right experts. 

Call Business Untangled today and see how we can help you save money, pay less tax, and manage your business with less stress! 

Running a successful business can be as easy as A-B-C!