30 Sep 10 Steps for Business Owners to Save Money Fast
Let’s be realistic, the goal of every business is to earn money. The altruistic spiel—by some business entities—on public service and the like is just icing on the cake. And the cake is the dough—dough as in money. Making money for the business is largely dependent on the sales that the company makes. However, it is not the only way to make money. Savings, by making operational changes, also help the business make money.
How can business owners save money fast?
Pay your bills on time
As a business entity, you are going to need electricity, phones, internet, and other utilities. Pay your utility and other bills on time. Those penalty fees are unnecessary expenses that you will incur.
Pay your taxes on time
Much like your bills, taxes should be paid on time in order to do away with unnecessary penalty payments and late fees. Make a tax plan. The tax, when paid one-time, may be a big burden to your finances. Allow for some money to be set aside for tax payments every quarter—or every month if you prefer. Put this in a box—literal or figurative box—and then use it to pay for the tax at the end of the year. The Internal Revenue Service is noted for strictly imposing high penalty fee. Getting rid of avoidable expenses is actually the best way to save money fast.
Maximize tax deductions
Sometimes, it is better to pay a tax expert to handle your tax returns so that proper tax information will be detailed in the document. Less mistakes means less chance of getting a penalty. Also, experts know what deductions you or your business is eligible for. This way, you can truly maximize deductions that you are privileged to enjoy. But for the basic deductions, these are the basic: professional fees and memberships, expenses on supplies and materials, plus other legitimate expenses.
Take advantage of credit card deals
There are cash-back promos and bundle deals from credit card companies. Take advantage of these when you are restocking your store or business. The promo may not sound much for one purchase but if you add everything up, you will realize that you have saved a lot of money. Add everything you saved for the entire year and you’d be surprised.
Separate business and personal expenses
A lot of business owners pay personal expenses with the earnings from the company. This should not be the case. It’s so easy to say: “My business, my money.” However, if you want to run a proper business, these things should be separated. What you should do is give yourself a salary—as a manager or whatever role you prefer. This way, you can also do a proper accounting of your business. You will not know for sure if your business is doing well if you keep getting money from the company for your salon appointment or other personal effects.
Take on remote operations when possible
Operating a digital office is so much cheaper than having an actual one. Having a physical office means utilities, office supplies, equipment, and office fixture. Then you even have to pay for cleanup and other services. The operational cost takes up much of the business expense. So if you could do away with this, then that would mean big savings for the company. But how can you do this? You could open a digital office where all employees just meet and communicate online. Of course, this will not work if you have a store. However, there are still jobs that you could do remotely. Accounting matters and other things could be done remotely—you could hire a person online or you could get an app for this.
Employ Gig Economy
Gig Economy is the practice of hiring freelance people for specialized tasks. Technically, you are outsourcing some work. This will create big savings for you because you will only hire then for a specific task at a certain period of time. Say a tax expert or layer—you will only get this type of professional if it is tax season. You don’t need to give these people benefits because they are not regular employees. You also don’t need to set aside a 401(k) fund.
Take advantage of the digital world by going paperless. Relying on paper does not just mean buying loads of paper, it also means buying a printer, scanner, photocopier, and others. Going paperless does not only mean saving money, but you are also saving Mother Earth. Going green is actually the new black.
You will significantly save money if you take in interns. Most interns are not paid monetarily. Some are given allowances, while others get goods or services or discounts. And if interns are paid, they will be significantly lower than regular employees. Also, you don’t need to give them benefits or give a counterpart when it comes to social security and retirement fund. You also don’t need to provide healthcare service.
Do your own marketing and PR
Marketing is very important for the company. But if you can do it yourself, that would be very advantageous. You are actually the best person to market your product or service because you believe in your company. Marketing is not rocket science. However, it will need a lot of research and planning. Get help from friends and families. Also, the trend now is social media. Take advantage of this.
There are more ways for the business to save money. You just have to be resourceful and creative.