Operating or starting a business and learning how to save money at the same time can be tough. The optimism of small business owners continues to increase all the way up to 104.7%, which is very strong.
But there are things holding you back. You might be feeling a little unsure. You might not know exactly what to do next to reach your financial goals while growing your business at the same time.
That mindset can kill your business over time and keep you from reaching your personal finance goals. I am here to tell you that it might not be that hard to do both. Below are eight ways you can save more money while starting or owning your own business.
Your friends, family, and other business connections can be a great resource for referrals. These individuals can provide you with sources of new businesses or individuals that need your product or service. Don’t be afraid to ask a few people. Most people that are in your close circle of friends and family want to help, they just don’t know how. Give them the exact ways they can help you grow your business.
Fun Fact: When I launched this blog I started with friends and family first. I wrote a simple email and laid out a few key ways they could help. This can be a tremendous resource if you feel comfortable asking.
There are ways that you can save money on your taxes if you work from home. You can deduct a portion of your house off your rent or mortgage. You may also be able to save money by deducting certain items that are used for maintaining your home expenses. This is an easy way to save. Be sure to check out the IRS’s website to learn more. It also may be worth calling your tax advisor for additional information.
Bartering products or services goes back hundreds of years. Many economies operate entirely on this system of trading goods for other goods. Finding ways to trade your good or service with someone who can also help you in your business can be a great way to save cash.
This might sound counter intuitive. Raising your deductible will usually lower your premium payments. If you are healthy and don’t reasonably expect that you will end up needing any major hospital visits, then it can be a good way to save more on monthly premiums.
In addition to cutting other non-essential services it will benefit you to look to the market for what the latest phone carrier deals are. Lately service providers have been getting in heated battles about who can offer the cheapest deals. You could also consider switching to a pre-paid plan if you know exactly how much data and minutes you use. They key is to avoid contracts and read the promotional details to be sure you will save money. Before you switch, it may be worth asking your carrier for a better deal. One thing is for sure, they don’t want you going to the competition. You may be lucky and get a better deal if you just ask.
Each city and state have local organizations like called SCORE and other Small Business Development Center’s (SBDC) that offer free consulting and training. SCORE has hundreds of chapters in the U.S., and typically, if you make the effort to reach out, you will be connected with someone shortly. There are thousands of SBDCs across the U.S. that free consulting to current or aspiring business owners.
This is a big one. We have written about this extensively on the blog before. When you are starting a business, minimizing your expenses is even more important. Be sure to explore creative ways to reduce monthly expenses like cutting Netflix, eating out less, and reducing your medical bill payments. Now is not the time to buy a house or other big ticket items. Now is the time to save for your future and grow your business. This isn’t the time to buy a new house or a new car or take on personal debt. Living a simple life is not hard once you get used to it.
Make more sales. You need to find ways to sell your product or service. You can certainly save a lot of money by cutting expenses but the most effective way to reach your financial goals is to earn more money. To do this, you need to charge more for your services or find more clients. This means you need to sell yourself and your product or service more often. The goal should be to reduce all your costs early on and work on increasing your income over time.
If you sincerely take on the steps above, there is no doubt you will be able to save money monthly and start your own business at the same time. Saving for your future should not take a back seat to you starting your own business. You are likely running your business to get you to where you want to be financially anyways. Do it the smart way.
The Key Takeaway: There are a ton of resources that can help you get started with owning your own business. Owning your own business is a great way to earn extra income. Chris Guillebeau’s book “$100 Startup - Reinvent the Way You Make a Living, Do What You Love, and Create a New Future” might help you on your journey.
Chime in below: Do you have a side business or are you a full-time business owner? We’d love to hear what you are up to.
Zack is one of the co-founders of FreeUp and is in charge of setting the strategy for the blog and managing the day-to-day operations. When he isn't plotting new ways to create awesome blog content, he likes to geek out about global affairs, ride motorcycles and can probably be found hiking somewhere during his days off.