Running a business from out of your own home obviously has its advantages. You don’t need to spend money on rent, utilities, furniture, commuting, food and drink, and possibly even employees that will only add to your overhead. You don’t even have to worry about buying work clothes and can instead laze around all day in your sweats if you really wanted.
But even within all these savings, it’s important to not let your finances slip. Money is important to the operation of any business, and the more you can save, the better. It’s time to gain control of your finances and use these tips to save even more money and maximize your profits.
Find Group-Buying Partners
Purchasing wholesale is the way to go if you want to save money on supplies and materials, but as a small business owner you may end up with more than you need and can afford. If this is the case you may want to consider teaming up with other businesses (even if they are competitors) and purchase together as a group. Not only will you save cost on the materials, but on the shipping as well.
Look for businesses that will require similar materials as you, and make sure that there is a clear agreement in writing. Outline who will make the purchase, where the goods will be delivered, and how reimbursement will be handled.
Manage Your Debt
Debt is a reality for almost everyone, and business owners often need to take out loans in order to get their business going. Keep in mind that your debt accumulates interest over time, so it’s important that you are aware of it and pay your bills on time (even if all you can do is the minimum).
Buy Used Furniture and Equipment
You can actually find some decent used furniture and equipment for sale online. When companies move office or close down, they will often sell their old items at huge discounts. You can use these sales to furnish your home office with the essentials like a chair, desk, filing cabinet, and you may even be able to find discounted equipment like a printer or monitor.
Take Advantage of Tax Deductions
The government offers home business tax deductions, though they can be difficult to navigate. You can deduct certain business expenses from your income tax like mortgage/rent, utilities, and equipment purchases. In order to determine what qualifies, make sure you read the rules carefully and do your research first. If it’s something you don’t feel comfortable doing yourself, ask a professional to help you out — the savings will be worth it.
Always Be Money-Conscious
Saving money doesn’t have to be limited to the workplace. Adopt a money-conscious attitude in your everyday life and you’ll find yourself with more money to spare at the end of each month — which is a great asset for a small business owner.
