As small business owners, we all have to think about how we’re going to save for the future – and we’re not just talking about next year’s marketing budget. With this in mind, it’s a good idea to have a savings account for your business separate from your other accounts. This way, if you lose your job or your company runs into a rough spot, you’ll have money set aside in case you need it. If you’re trying to get your venture off the ground, you need to find ways to save money. Smart, money-saving practices aren’t reserved for billion-dollar businesses.
But what if you don’t have savings? You’re in the same situation as many other business owners. Don’t fret it. There are ways to save for your business.
You should always have an emergency fund that can help you bounce back from any financial blow. Suppose you depend on your business for your income. In that case, this becomes even more important because you need to keep paying your bills without worrying if your business will be able to recover from a setback. If you want to raise money from investors, you need to be smart with your money.
Here are some quick tips to help you save for your business:
- Set a weekly savings goal
- Automate your savings
- Create a savings plan
This means you should have a savings account for your business that is kept separate from your personal account. This savings account should be non-negotiable and should be established as soon as possible. Whether it’s a savings account or an investment account, having a dedicated savings account for your business is vital. You never know what is going to happen to your business. You never know when you’re going to need that money to cover expenses or expand your business.
In business, you need to make decisions, and then you need to stick to those decisions. It’s important to make the best decision possible with the knowledge you have, and then you need to stick with that decision. If you’re constantly changing your mind, it’s going to be incredibly difficult for people to do business with you.
There are also other creative methods to save money for your business. All you need is to be a bit savvier (and creative), and you’ll be surprised with how much more you can save for depositing into that savings account.
Have a look at these money-saving tips:
- Make technology work for you
Most businesses were forced into adapting digitally due to the global pandemic. We, for sure, believe that digital transformation is a critical action that all companies should be aiming towards achieving. There are great cost-saving benefits by going digital and efficient to save on time and money. For instance, meetings can be done online and not in-person – no rental space, no petrol or car used nor any catering needed.
- Reduce or limit office space
Not only is it safer to do so during this time, but it’s also a significant cost-saver to businesses. Many landlords are also offering their tenants discounts for using hotdesks for utilising the premises for only half the month vs the whole month. You can investigate this with your landlord, but it is a viable and acceptable option for many businesses.
- Use a project management tool
There is a small fee to use any of these online applications, but the increase in productivity is far greater than the monthly subscription cost. Make sure you’re getting the maximum use (fairly) out of all your resources. Use the money saved from these tasks towards your savings account.
This list can go on and on. There is enough opportunity for all small businesses to save money, no matter the amount. Use the tips and start saving for your business. It may never rain, but you don’t want to be caught in a storm one day – without having any backup.