Running a business is a big financial feat for any new entrepreneur. There is so much information to learn so people tend to cut corners anywhere they can to get their business off the ground. But be patient! It can be really intimidating at first, but with the right plan in place you can get yourself started on the right foot and make a profit before you know it! Here are 5 tips for entrepreneurs to help you save more of the money you make. Let’s get into it!
1. Obtain a Business License Early On
First things first, apply for a business license! A lot of small business owners try to put this off in the beginning, but don’t wait, get it done! This is going to help you so much in the future when it comes to finances. It will help keep your taxes organized as you’ll be filing your business taxes separately from your own. It will also help build a good reputation and trust between yourself and other businesses, and put you in a great spot to apply for business loans you might be interested in to help get your business started.
2. Keep Track of Everything You Spend Towards Your Business
RECEIPTS RECEIPTS RECEIPTS! I can’t stress how important it is to keep track of everything you spend towards your business. My best advice would be to do some research before you even start spending. Figure out all of the things you can write off, and act accordingly. Hold on to every single receipt so that when tax time comes around you aren’t stressing out about your spend. Regularly audit your spending to keep yourself in line. It seems a little intimidating, so if you are worried about it don’t be afraid to hire an accountant! The worst thing you can do is put it all off until tax time.
3. Keep Your Costs Low
It is easy to invest way too much money when starting a new business. It’s so important to create quality products and services, so a lot of business owners invest a ton of money in their business right from the start. They want a perfect website, staff members, and the shiniest new technology for the office. But slow down! The less you spend, the higher your profit will be! There are a lot of expenses when you first start your business, but there are plenty of tools and resources you can use to help cut costs from the start without all the bells and whistles. Create a budget and stick to it!
4. Bill Smart
When it comes to billing, you want to be smart about it. Make it convenient and accessible to different clients around the world. Choose payment methods you are confident in and bill your clients on the same day every month, and set the expectation early on. Use a program that helps you keep track of everything in one place, and be diligent about getting invoices out. The sooner your customer has them, the sooner you get paid! If you run into obstacles around getting paid on time, follow up with your client. Make sure they understand payment expectations, but also don’t be afraid to be a little flexible if needed.
5. Be Future-Focused
Everything you do when you start a business needs to be done with the future in mind. You want to make sure you are secure even if things don’t work out as best as you hope. I’m sure you’ve heard the phrase “don’t put all your eggs in one basket.” That definitely applies to a business. As I mentioned earlier, new business owners often invest really heavily at the start. Although it’s important to put money into it, you have to make sure it makes sense with your goals, and your bank account! Small business loans are great, but you don’t want to spend all of your money before you make it. Look into small business grants you might be eligible for to avoid putting yourself too far in debt. Another thing that’s important is making sure you are paying yourself just like any other staff member. That way if things don’t work out, your personal bills and pockets are protected!
That’s it! If you are thinking about starting a business, don’t let the financial aspect be what holds you back. I can’t stress enough how important it is to take the time to learn as much information as you can about starting a business before getting started. Look to the people around you. Who can you utilize as a mentor? Who can you learn from? What other resources might you have? Be patient, take your time, stick to your plan, and be ready to pivot when it’s necessary. You’ll be making money in no time!
