Running your own business is stressful at the best of times, but when your finances aren’t matching your expectations, it can impact your confidence and business operations. Thanks to COVID-19, the way small businesses run has completely changed. While some small businesses are thriving, particularly online businesses, many brick-and-mortar businesses have shut down, and others are scraping by. If you’re part of this latter group, you’ll be looking for ways you can save money now and into the future.
The following five tips from GoSwitch will help you be more frugal with your money, saving it where you need it most.
Create A Financial Plan
Businesses can’t function without a budget. Not only does it make the daily operations more effective, but it also helps you to keep your goals in check. You’ll be less stressed, knowing you’re not overspending, and you’ll have a better idea of your profit and loss. Start by jotting down your financial goals. Where you are now, and where you hope the business will be in 6 to 12 months.
Consider the expenses you have, whether the business has any debt, and what you pay out on employees, contractors and of course, what you’re paying yourself. Ensure you have a backup as well – whether that’s a credit card for emergencies or your personal savings that you can access should you need to. A contingency plan will allow you to be more confident with the everyday handling of the business.
Keep Your Running Costs Down
The best way to save money is to stop spending it. And while you can’t completely stop buying products or paying the bills, you can look for ways to save. If it is supplies you’re after, shop around for different providers. It’s a competitive market out there at the moment and there are plenty of businesses who will be willing to provide the same products to you for a much better price than you’re paying now.
And when it comes to suppliers, consider switching utility providers. By switching energy providers, you could be saving your business up to 10% per annum on your bills – maybe even more, depending on your size and requirements. A comparison tool like GoSwitch is a great way to make sure you’re getting the best deal and that you’re signed up to the right plan. You can search different features and benefits from various electricity providers to determine your business’ needs and see how much you’ll save by making the switch.
Outsource, Outsource, Outsource
Remember, time is money, and as the business owner, your time is the most valuable in the organisation. If you’re spending your days trying to work out how to post a photo on Facebook, or deciphering excel spreadsheets rather than getting out in public selling your products or services, you’re wasting your time. Remember, you don’t have to do everything yourself, nor should you employ someone new to fill every role in the business.
Outsourcing is a great way to ensure you’re only paying for what you need. There are freelancers available who can do pretty much anything for your business, particularly the online components. And if you look carefully, you’ll find them for a fraction of the cost it would be to employ.
Money is one of the most significant stressors for business owners. Don’t let your business fall apart because you’re not taking good enough care of the finances.