Tips for Keeping Business Expenses Under Control
Money concerns keep many new business owners up at night. They become overwhelmed by financial responsibilities, employee issues, and taxes. However, by prioritizing tasks and expenses and controlling expenses, your chances of succeeding significantly increase.
A full-time financial advisor may not be within your budget at this time, but hiring one as a consultant is one of the best ways to remain compliant with tax laws. Financial advisors can recommend investments and smart purchases and advise on best practices to protect your assets as your business grows.
Why Budgets Are Important
Smart business owners make smart decisions about expenses. Creating a budget for your business and checking your expenses helps keep spending under control. One of the most critical lessons for a new business owner to learn is to monitor their expenses, setting aside capital to grow.
Many of today's businesses started from home, i.e., Amazon. A space in your home, a kiosk, and even shipping containers have gained attention as practical "offices." With the right workspace, low overhead, and carefully chosen technology, you can jumpstart your business with minimal expenses. Virtually invoicing and virtual payments are no longer challenges with so many options available.
There are several ways to be economical in business. Here are 9 tips on some of the best ways to use your capital sensibly.
- Prioritize. Being as productive as possible is paramount. One way to keep things in check is to establish your work hours — set your schedule and tasks wisely.
- Do Your Homework. If you feel uncomfortable negotiating with vendors, get multiple quotes. One tried-and-true tactic is to threaten to seek another supplier — nothing is more effective in encouraging negotiation.
- Bartering. Another effective tactic is bartering. You have a valuable product or service that may be exchangeable with other small businesses. Get involved in start-up owner communities, and attend local industry events.
- Other options. A virtual bookkeeper or affordable accounting software allows you to perform many of your accounting tasks. The certified bookkeeper salary is typically less ($11-$25/hour) than that of an in-house accountant.
- Another way to save. Consider assuming the advertising and marketing role yourself.
- Inbound Marketing. Engage existing employees' skills.
- Marketing: Set up a budget for paid marketing/social media promoted posts.
- Hiring virtual employees. This saves you money by eliminating office rent and allowing you to cast a wider net for applicants, hopefully supplying better-qualified employees. Although remote employees often accept lower rates of pay, always pay your workers fairly. Take advantage of meeting platforms, such as Skype or Zoom, to stay in touch.
- Hire interns. Colleges are full of accounting, business, HR, and marketing students eager for work experience. Most millennials have an excellent grasp of social media and other digital platforms to develop outstanding marketing and advertising strategies.
Time is Money
Skype, Zoom, or email can save you a lot of time. Also, online task scheduling platforms are a great tool.
When starting a business in Australia, one of the best things you can do is model a productive work ethic yourself, one that inspires others to work hard toward your company's success.
Visit The House of Routine for more inspiration and tips for managing time, creating routines, staying focused, boosting moods, and reducing stress/anxiety.