How you can manage your money better for your small business
You need to manage your money very carefully when starting a business and especially once your business takes off. Your original investments might start to dwindle, and you will need to start running on profits and storing cash away for a rainy day. Every dollar counts and here are some important tips on how you can make the most of your money.
Repair instead of replacing
When things break down or start to decline, try to repair it instead of simply replacing it. Buy electronic components from Sourcengine to repair those faulty devices and give them a new lease on life. Do not waste your money on buying all new gadgets and gizmos when they can be repaired – you will save money in the long run and make the most of the money you have already spent.
Turn off your computers
Leaving computers, and other electronic devices, on overnight can add an extortionate amount of money on top of your standard energy consumption. Depending on how many computers you have in your office, this could be a huge savings opportunity for you – make sure all electronic devices are turned off when you leave the office for the night to prevent them from draining all that energy unnecessarily.
Use free software
Visit Download.com where you can try hundreds of software products for free through trial downloads, freeware and limited versions of the full product.
Buy second hand
You can save a fortune by purchasing second-hand computer equipment, photocopiers, printers, and office furniture. You can find these through auctions, social media posts or newspaper classifieds.
Outsource all non-essential functions
Outsourcing or hiring contractors is a great way to save money as opposed to hiring full-time staff. You save money by not having to pay for payroll taxes and you will only have to pay for them for the work that they do. If you can call in a contractor’s help when you have a big project to finish and then cut them loose when the project is done.
Staff for Peak Times
A huge problem for many businesses and stores is short staffing during busy times. Observe and measure the traffic through your business and identify peak times, and make sure that you are staffed appropriately. You do not overpay for staff when you do not need them, and you do not lose out on any business due to being short-staffed.
Join a co-working space
For a small start-up company wanting to grow out of your home office or a more mature organisation looking to transition into a more flexible workforce, co-working spaces are a great way to eliminate the overhead.
Get out of debt
It is important to get your company out of “bad debt”. And what is bad debt? If you are paying more on a loan than the revenue you are making from your investment, this is bad debt. A way to tackle bad debt is to pay annually instead of monthly for your software and use the difference towards paying off other debts.