Being a new business owner can be challenging, especially when you’re still establishing a loyal client base and often have more outgoings than income. As difficult as it can be to keep your bank account looking healthy, there are certainly ways to cut costs to ensure you’re keeping as much money in your business as possible. If you’re struggling to maintain a healthy bottom line in those early days, consider doing some of the following things.
You sometimes have to spend money to make money, so consider purchasing software that can save you from having to hire more expensive professionals to perform the same tasks. For example, a paystub generator with a per-stub payment rate and accounting software with invoice features are often much more affordable than an accountant. You can also purchase software that assists with automation and productivity, freeing up your time for tasks in your business that make you money.
Getting your name out in the public arena as a new business can often be challenging, especially in the online space. Whether you have a physical or online store, consider more affordable marketing options than TV, newspaper, and radio, such as social media.
Marketing on social media allows you to set a budget you can afford and target people who would be more likely to utilize your products and services. In comparison, more traditional advertising platforms can cost considerably more money and don’t always allow you to appeal to a particular target market.
Leasing office space might seem like a natural part of the business start-up process, but it doesn’t have to be one of the first things you do when you’re just building up your client base. Instead, you can often save money by opting for a virtual office. A virtual office allows you to work from home while still taking advantage of an elite business address and mail forwarding service with a virtual office provider. No one has to know that you’re working from home rather than in a business district.
While many companies offer 30 days to pay for products and services, you can choose a much shorter payment window if you please. Many small businesses require payment within seven days, which might ensure you have consistent income that allows you to live comfortably and pay your bills.
You might have more work than you can handle on your own, but hiring workers can be expensive. In fact, the U.S. Small Business Administration says each worker can cost up to 1.4 times their salary to retain, with payroll costs like FICA, federal unemployment tax, and state unemployment tax.
Consider online freelancers or independent contractors if you need a helping hand in your business. As long as their role fits the definition of an independent contractor, you don’t have to withhold or pay taxes on their income.
Establishing a new business can be challenging when your income is limited, but there are plenty of ways to save money. Try these tactics above and potentially enjoy a much healthier bank account while establishing yourself as a trusted business owner in your community.