10 Steps for Business Owners to Save Money Fast | ON DEMAND BOOKKEEPING
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10 Steps for Business Owners to Save Money Fast

how can entrepreneurs save money

10 Steps for Business Owners to Save Money Fast

The goal of every business is to earn money. That is why business owners spend so much on marketing in order to entice more people and earn more clients for the business. But while the customers are the main source of income for a business or company, there are other ways wherein the business earns money. One such way is through savings. Savings can be considered as extra money for the company, hence, another source of income. So here are the 10 steps for business owners to save money fast.


Pay taxes on time


Tax is a responsibility of every entity—that means the citizens and other legal entities. If a business has been registered as a limited liability corporation or a corporation, then that means the business is a separate entity, and is therefore taxed separately. Always file the tax return on time and pay the necessary taxes on time as well. Failure to do so would mean paying a fine or penalty fee. This is an unnecessary expense. So if you pay your taxes on time, the penalty that could have been incurred by the late filing would now constitute your savings.


Collaborate with other companies or business owners


Here is a more modern approach to business: collaboration. For decades, even centuries, business owners only know how to compete with other businesses, forgetting that collaboration is so much better. This is also an important step in saving money for the company because the collaborative businesses can share their expenses. Collaboration also saves a lot in terms of marketing. Your business has its own loyal customers, while your partner’s business also has its own set of followers. When you collaborate with another business entity, it means that you will be expanding each other’s loyal following. You are expanding your customer base without spending much. There will also be sharing of ideas and skills in both parties.


Seek professional advice


So get a consultation on how you can save money fast. Some startups are wary about spending money on professionals. However, in the long run, getting professional help will be more advantageous to the business. Because they are experts, they can give you clear-cut advice on making money and having more savings. Anyway, you don’t need to hire them on a permanent basis, just until you have the advice down pat.


Strike a balance between marketing and product development


For the longest time, businesses have spent too much on marketing in order to get more customers and attract investment. However, investment priority should really be on product development. Not that marketing is not important but there should be balance between the two. If you actually improve or innovate on the product, then that becomes the best marketing tool for the business. A great product—a greatly improved product—is easy to sell and market.


Leverage the Gig Economy


One of the biggest expenses for operating a company is the labor. When you hire an employee, you don’t just care for his benefits, you have to consider his social security and retirement contributions, and health care benefits. However, there is a new trend called Gig Economy. These constitute freelancers. As the name suggests, these are people working on a gig basis. You hire these people based on their specialty and only when needed. Say the tax experts—you only really need to hire them when the need arises, which generally is during tax season. Cleaners also don’t need to be full-time employees. Patronizing the Gig Economy means saving on giving employees benefits.


Go green


Contrary to popular belief, going green is actually cheaper. Say you need to deliver something. If it’s not that far, perhaps you can get your messenger to deliver via a bicycle rather than using a company car. Get the employees to bring their own mugs and water bottles at work so that the office doesn’t have to buy disposable cups for coffee and water. When electrical things are not needed, turn them off. Like if people are taking a break for lunch, there is no need to have the lights stay on.


Shop around for suppliers


Before deciding which supplier should take on your business, make sure you have the most practical one on the payroll. Always shop around for suppliers before deciding on The One. And just because you’re trying to save doesn’t mean you can just choose the cheapest one. Sometimes the cheapest ones are also of the worst quality. The trouble this will get you into may not help you save money at all and may even become more expensive. So always ask to test the items before signing a contract.


Build your brand online


According to statistics, 81 percent of the US population have a social networking profile. You have to maximize the ability to reach people. Building your brand online will help you reach more people than by advertising on broadcast stations. To think, using social media is free. Of course, if you have to build a brand, you might have to spend some money on it even if you do it online.


Leverage the Tax Code


The Tax Code allows some deductions that could greatly lower a person or business entity’s tax bill. Take advantage of any deductions you or your business is eligible for. This will bring us back to Step #3: Seek professional advice. Tax experts know the Tax Code like the back of their hand. Allow them to handle your tax documentation so the deductions will be maximized.


Keep the best employees


The cost of work turnover will cost you money because there is a loss of productivity. When a position is vacant, it means that there is a job that is not being done. So make sure you keep the best employees. This may cost some money in terms of dangling more salary and benefits, especially if they have been in the company longer, but in the long run, this may end up more practical. If you have the best employees, they will do their job right and commit less to zero mistakes. Hiring a newbie means risking errors. And in business, errors cost money.


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how business owners can save money fast

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