In uncertain economic times, businesses should always err on the side of caution when it comes to their budgets, right?
As a result, anything you can do to keep more money in your pocket is a plus. This rings true whether we’re talking about enterprises, small startups or solopreneurs who are just trying to make ends meet.
The reality? Saving money as a business owner oftentimes transcends size. In fact, we’ve broken down six principles and tips that apply to just about any business, big or small, looking to stay swift and cost-effective.
Hire Out of Necessity, Not for the Sake of “Growth”
Today’s companies are obsessed with growth: chalk it up to the popularity of growth hacking and the bustling culture of startups. That said, bringing on new talent, whether in the form of full-time employees or freelancers, can quickly snowball your budget (especially when things don’t work out).
Swift businesses should therefore only bring on talent when absolutely necessary based on hard numbers such as revenue and loss of productivity on behalf of your team who needs a helping hand.
Adopt More Efficient Audit and Project Management
As the old saying goes, time is money.
Investing in audit management software alongside a project management solution is a smart move for bigger companies looking to stay accountable in terms of time to their higher-ups. Streamlining projects and audits not only helps save money on behalf of your organization, but can help you avoid some huge headaches, too.
Implement a Waiting Period on Big Purchases
Marketing tools. Office space. New tech.
There are tons of temptations and “shiny new toys” out there that cause businesses to blow out their budgets by accident. While new luxuries and tools are nice, companies should tread lightly when it comes to office-wide purchases. Make sure to crunch the numbers in terms of what you can spend and give yourself time to cool off versus making a rash decision.
Set Actionable Income Goals
Especially for smaller businesses, setting financial goals is crucial to keep yourself from stagnating. Sure, a solopreneur might be happy earning $50,000 in their first year of business, but what are you doing to make moves toward $75,000? From scaling down your working hours to finding opportunities to expand, having an income goal in mind ultimately keeps you focused.
Automate Everything You Can
Companies today have the benefit of so many business automation tools – some of which are free – to take care of tedious tasks.
Whether it’s automated emails or customer reporting, anything a software solution can do to take a few minutes off your plate here and there is a major feather in your cap. Small tasks add up over time, and again, time is money.
Rethink What You’re Worth
Here’s a question: when’s the last time you raised your prices or rates?
If someone is willing to pay $100 for a product you’re charging $50 for, consider how one of the simplest ways to boost your bottom line is simply rethinking what you’re worth.
Many small businesses especially sell themselves short. Those who already boast a sizeable customer base and have no problem scoring business can likely raise their future rates without a hitch. You might have a bit of a mental block is doing so, but ask yourself: what are you doing to reach those aforementioned income goals?
If you’re taking the steps to stay frugal despite having positive cash flow, your mind is most definitely in the right place. Make use of these principles and hopefully you can save a pretty penny in the process!