Starting out or keeping it small, it’s time to be smart with your money as a business. Below you will find smart ways of managing your money, as well as simple ways to save money as a business.
Being smart with your money leads to smart business practices and you don’t need more reason than that to keep reading.
Things that start with business…
A few things that start with business and end in smart money choices are:
- Business car leasing: Leasing a business car means you don’t have to worry about depreciation in value and struggling to sell your car at the end of its term. If your business requires a more-than-average amount of time on the road, for clients and site visits, then you should consider this business car option. You’ll also save money leasing a car by paying lower monthly installments than if you chose to purchase the car.
- Business credit card: Besides the obvious advantage of building a credit score – for necessary equipment, office space and other contracts – using a business credit card is an easy way to keep track of your expenses. You also have the chance of cashing in from some type of rewards program. Be sure to research your credit card options and find one suitable for your business ventures.
- Business expenses: Tax deductible. Look it up. Know what classifies as a business expense and that can be claimed back at the end of the financial year. You’re welcome.
Budget
As important as it is in your personal finance life, setting a budget for your small business is equally as important. Monitor money coming in and leaving the business and make sure you know how it’s making its entrance and exit. Take note of fixed monthly money allocations and budget for new expenses and profits.
Creating and implementing a budget places everyone on the same page with regards to how money moves in the business and that all movements are being tracked. In any business, it’s also a means of keeping tabs on how the company is doing with regards to reaching their business goals.
And save
Don’t be quick to give yourself a raise when the business starts doing well. There’s constant instability in almost every business market and that extra money is better “spent” sitting in a savings account. Find ways to save money in your business and where you do save, put that money away for a rainy day.
Implementing green practices in your business will save you time and money. Energy-efficient lighting will reduce your electricity bill and using less paper and printing equipment will save you those costs as well. And if being completely paperless isn’t possible, be sure to recycle.
Save money on a marketing department while you’re still small and head it up yourself with the help of media management applications and building media connections.
Use technology
This will save you time and ultimately money. There are so many different kinds of business technology software designed to make running your business easier. Whether you need accounting services, mass mailing, social media schedules, customer service, internal collaborative platforms, invoicing, project management or data storage, you will be able to find an automated system to help you out.
Schedule your payments, posts and admin tasks with automated solutions. As a small business or start-up, you may not be in the financial position to hire someone to do these tasks and your time is better spent working on the front lines of your business.
Smart hiring
Don’t throw your money at hiring a team of salespeople when you only, in fact, need one (for the time being). Quantity will come as your business grows and you have more clients and credibility in the industry. For now, all your small business needs is one or two quality sales professionals who can get business flowing.
Take the time to interview a variety of candidates and take into consideration their experience and skills, not only relating to the job position. The chances of them having to help out in other departments is likely and you will find more value in an employee of many talents than one great salesperson who cannot contribute to anything else in the company.
Every business has their own plans and needs so keep them in mind when making smart money choices in their small business.
