Is running your small business more expensive than you anticipated? Do you find yourself struggling to pay your bills at the end of each month or scrimping on your much-needed marketing budget? There are several simple ways to start saving money so you can direct your business’ funds to the right area.
Before you can get a handle on your finances, you need to become familiar with your income and expenses. Take a careful look at your cash flow over the past few months or even years to get an idea of recurring expenses and income so that you can use this information to create a budget to get your spending on track. Create spending categories and start keeping track of expenses within the categories. Make sure you do this frequently so that you can see right away if your costs for that category are headed in the wrong direction and start course correcting.
One weakness that many small business owners have is that their dream is often not in tune with reality. While marble-topped tables look great in a picture, those are expensive choices when ones purchased from a thrift store can be just as charming. See if you can DIY your vision or come up with a different idea altogether that won’t break the bank. Do you really need to rent office space or can you set up shop in your guest bedroom? Is a coffee bar an important amenity to offer customers or can you eliminate it? Think long and hard about whether your vision is practical and worth the expense or if you can make do with a cheaper alternative.
By getting a hold of your finances and checking in with your spending and inspiration, you’ll be able to run your business without being worried about closing up your shop.