It’s no secret that startups often fall into the trap of spending money on things that aren’t that important — it’s just one of the many mistakes that entrepreneurs can make.
Smart entrepreneurs always have money-saving plans for their start-ups. If your business is struggling in the climate of turbulence, why not try some of these smart money hacks to save money for your business.
Here are the 10 smartest money saving tips for entrepreneurs,
1. Switch to digital delivery
Updated news and information can be invaluable for businesses, including start up firms. Broadband access can create the opportunity for entrepreneurs to shift from paying for newspaper subscriptions to getting the news and information online without subscription charges.
2. Barter or trade
Bartering — swapping one thing for another — has been an effective way of doing business for centuries. In recent years, bartering has evolved into a sound strategy for finding goods, trading services, conserving cash, moving inventory, and locating excess production capacity. The International Reciprocal Trade Association (IRTA) helps match up companies interested in bartering for goods and services.
3. Non-monetary incentives
Members of your team will often work for equity or deferred payments rather than initial salaries. This will help you keep costs down during the launch and early growth stages of your business.
Outsourcing is a multibillion-dollar industry. You can find outsource partners to provide just about any product or service you need. Outsourcing turns what would normally be a fixed cost into a variable cost because you only use the service when you need it.
5. Work virtually
In this new age of technology, it’s possible to work from just about anywhere: from home, in your car, at the airport, or in a hotel room. By working virtually — and allowing your employees to do the same — it’s not necessary to take on the expense of establishing an office when you’re launching your business.
6. Use free software
Free and inexpensive software is plentiful online. Various available programs can help you manage your finances, plan your projects, track your customers, and much more. You can also take advantage of free trial periods for most business software. This gives you a chance to use the application for free for 30 days or more to determine if you really need it.
7. Take it to go
Mobile apps offer start-ups opportunities to achieve productivity and efficiency gains. Apps on mobile devices are helping small business owners save time; reduce costs; increase revenue and productivity; work more effectively; and better serve customers. In fact, there seems to be an app for almost every business need, and entrepreneurs are quickly tapping into these solutions made possible by rapid innovation in mobile technologies.
8. VoIP your phone
The telephone remains a business staple in running a successful enterprise. New technologies provide new choices for entrepreneurs, as well as the potential for significant cost savings. Competition is lowering both line fees and long-distance charges. The vast improvement in VOIP service offers a clear alternative for start-up businesses, as well as cost savings.
9. Find out about tax deductions
It is important for an entrepreneur to know what kinds of tax breaks and deductions you can take. For example, the Residential Renewable Energy Tax Credit gives a 30% tax credit for eco-friendly upgrades to your office. Other deductions may have for: Internet service, industry magazine subscriptions, email contact lists, classes and training to improve industry knowledge, and utilities in your home office.
10. Keep your number of staff lean
Having extra employees can always end up costing you more money. Staffing is something that many people have difficulty dealing in, especially those who are new to running a business. The path towards success, however, typically involves hiring as few employees as is necessary in order to handle daily tasks. This might mean taking on extra work for yourself, but the money you’ll save will make doing so more than worth your while.