Saving money while handling business finances is a primary factor to keep a small business in operation if done properly. There are many beneficial steps that can be taken by an entrepreneur to save money while running a business and increase their profits by doing the following things:
Unlike when working for someone else, a small business owner must set money aside from their profits for taxes and other yearly expenses. Setting up an online savings account is an effective way to put money aside for taxes since the funds can not be withdrawn as easily as from a local bank and ensures that the business owner is prepared to make their quarterly estimated tax payments on time.
An unexpected illness can create exorbitant medical bills that can put a strain on a business owner’s resources. So another essential aspect of anyone who is self-employed is to make sure that they are covered with adequate health insurance. In addition, the owner of a small business must research ahead of time to determine what type of insurance they need for their business and how much coverage to get in case of theft or property damage, for example.
Avoid Depending On One Source Of Income
Having multiple sources of income puts the smalls business owner in a better position to to maintain their profits throughout the year to cover regular expenses. For example, if a business owner sells furniture, they could become an expert of their industry through blogging with a reputable writing forum or by becoming an affiliate marketer. Teaching a class, speaking at a community meeting or writing an article for a local paper are additional ways a business owner can establish themselves as a valuable asset to their community without engaging in expensive advertising.
Use Free Business Resources
Instead of hiring a business consultant, a small business owner can save additional money by looking for free business resources. SBA, SCORE and ASBDC centers are all organizations that can provide free business counseling, mentoring and help with creating a business plan and local advertising in their community. Business owners can also take advantage of free software such as Download.com and find free solutions for project management, email marketing and word processing with MailChimp, Google Drive and 37Signals (within a certain usage bracket) to help them optimize their exposure online.
Use Social Media Networks To Advertise
Advertising through social media networks is a low cost marketing tool that allows the business owner to reach numerous consumers. Depending on the nature of the small business, an owner may decide to advertise on Facebook or choose a site such as LinkedIn if they only want to target a specific demographic.
Use Bundle Advertising
Many small businesses will used bundle advertising which allows them to split their advertising and promotion costs with a neighboring business. This is especially helpful when a business is being introduced to the community for the very first time.