We know a thing or two about how to save money fast.
That’s right; we are kind of like professionals at that. We’ve spent some time manifesting, meditating, and working with financial gurus to reach this level of “saving enlightenment.” However, we don’t expect that from you, sweet summer child. That’s why we’re here.
So, you may be wondering how it’s possible to own a baby business and still have no money. Maybe you don’t know where to start looking for those hidden expenses, spoiling your trip like a gas leak. No matter how small your business is, there are ways to keep delivering your products or services with reduced costs that will sustain you in the years to come. Every business has strengths and weaknesses. We need to find out what they are and structure things to benefit you.
We’ve put together some tips on how to save money that will help get your profits back up to where they should be. Next time you open your till you won’t hear crickets chirping. If you’re new to running your own business, it’s easy to invest in the wrong areas. You might not have your priorities straight quite yet. With the global economy rebuilding in many sectors, now is the perfect time to streamline your business and make sure you’re growing. Let’s take a peek behind the curtain, shall we?
Why Small Businesses Should Save Money
To start your journey on the money-saving train, you’ll need to change a few old habits and views that might be holding you back. You need to start seeing money as a resource and a powerful one. It allows you to act on essential decisions immediately, which gives you flexibility when unpredicted problems come up. It all starts by opening a savings account for your business and putting away a percentage of your profits every month. Most people don’t know how to save money fast within their business. Instead, they reinvest their profits in small amounts by plugging holes to keep the ship afloat.
While this is growing your business very slowly, many small transactions are more difficult to track than a savings account. Also, over 2-5 years, your savings gives you the power to purchase new assets like vehicles or property. You can even look into mergers and acquisitions of other competing companies. Without constantly accumulating funds within your business, you never get to think big. You simply carry on rowing, hoping that one day things will change while your business runs on inertia. Well, those dreaming days are over.
When you put a few save money tips into action, you take charge of your business. This is a proactive move that turns your business profits into a powerful tool *construction sounds.* The reason most business owners never do this is that they don’t understand the benefits. Often, they only know about accumulating wealth in a personal capacity as a private individual and not as a business. While the concept of putting money away every month is similar, there is a far more significant opportunity for growth when you start saving money with your company. Apart from the obvious tax benefits, you have the power to change people’s lives for the better.
You’ll be able to empower your staff financially in new ways, give back to charitable organizations within your community, or even start one of your own. Accumulating wealth within your business also means you can provide the best working environment for your staff. Having a $2000 espresso maker or an in-house chef might be a great idea but offering each staff member the best package you can provide for their position puts you ahead of your competitors. Your employees will gain a certain sense of pride in their work. Motivating them becomes easier because they know you value their time.
10 Tips on How to Save Money Fast
As a small business owner, it’s crucial to get started by understanding the small, subtle energetics of what you relate to every day. The best way to supercharge your savings is to align your chakras and dive in. For many people, profit margins can be small, especially if you are a new company. Let’s look at some helpful save money tips together, and we can find a few that you can use in your business.
1. Automate Your Savings
Don’t forget to save! Especially when writing a long email, amirite? Having an automated transfer to your business savings account is a great way to start saving immediately. It’s a set amount, making it easy to track and make cash flow projections with. Generally, your savings account won’t be linked to your main business card, so it reduces the risk of spending. It also saves time and gives you peace of mind, as you don’t have to calculate and review each payment. It’s a system that works in the background, slowly accumulating over time. Most importantly, you can focus on running the rest of your business.
2. Savings Kick Starters
“Sometimes when you’re feeling stuck, you just have to push on through (like icing through one of those bags for decorating cakes)” – Alchemy Accounting. Okay, so go ahead and quote us on that one. One helpful idea is to think up a quick and easy revenue stream, especially for savings. It could be something small, like selling merchandise, stationery, or coffee mugs from your website with your company logo on it. Then transfer all the profit generated from these new items into your business savings account. Digital products like eBooks or guides work well, too, as they don’t cost anything to reproduce. What’s important is that this is a small passive income stream to help boost savings; you aren’t completely diversifying your company. Your time is always a factor when starting new projects, so keep this in mind.
3. ROI Assessment
Okay, don’t be scurred, but we are going to have to take a look at your monthly expenses *gasps.* It’s okay, catch your breath, and everything will be okay. Is every item on that list absolutely essential in earning money for your business? Be thorough when you do this and get help from your financial service provider if you need to. Reducing those not quite so essential costs means more profits are being generated. You guessed it! That means more savings. You might find items on your expenses list that can be done cheaper and others that can be removed altogether. This process is healthy as you get more in touch with the comings and goings of the money within your business.
4. Buy Supplies in Bulk
It’s a good idea to bulk up, but we aren’t talking weights and creatine (we think you’re perfect). Look around your workplace and list all the supplies and perishables you use on a daily, weekly, or monthly basis, from your office supplies like printer paper, ink cartridges, and pens, to the sugar that goes into your coffee. Make sure you are purchasing these items in bulk and check with different suppliers, so you are getting the best deals. These items may seem like insignificant expenses at first, but it’s surprising how much you can save when you add them all up over 2 or 3 years. Exercises like this are great ways to cleanse your business of any unnecessary costs. Try this once or twice a year even, depending on the size of your company.
5. Put Your Business on a Diet
There is ALWAYS a more affordable way (not lying here). That’s the spirit! Do all your employees get the latest iPhones as part of their benefits? You may want to look into that *raises eyebrows.* This process involves combing through the costs to find ways you can increase your savings each month. There are so many services you use that carry costs you can reduce. It could be replacing your water cooler with a filtration system or joining a recycling scheme with other nearby businesses instead of using a separate company. Get creative, and don’t be afraid to make changes around your business. Remember that change equals growth!
Ahhh, the young and optimistic (who can sleep for more than 6 hours a night without the aid of a meditation app). Okay, so you’ve reached a new level of growth. You’re overloaded, swamped, and understaffed. Before you look at hiring anyone officially, look carefully at the cost of each position you need to fill. If it’s a new position in your company, using an intern is a great way to pioneer this new terrain. You get the feel of whether this position is absolutely necessary, and your intern gains experience and builds a relationship with your company. It’s a win/win, really. Another advantage is if the position isn’t worth it, you can still employ the intern in another area that better suits their talents and your needs.
7. Reduce Marketing Costs
Marketing and advertising are a known cookie monster when it comes to consuming some real potential profits. Simply take a look at all the millions spent on companies worldwide on TV ads that were never aired. Take a close look at how you are trying to reach your potential audience and if the platforms you use actually fit your company’s profile. Your customers fit into a demographic, so you need to find the cheapest and most effective way to engage them. This could mean using influencer marketing on TikTok. You might have to go door to door like Girl Scouts (who generate over $800 million annually). Find your fit for marketing that allows you to grow your customer base and reduce those costs as much as possible.
8. Tax Benefits
Remember, every transaction you carry out in business is recorded and taxed. Use this to your advantage. Find out all you can about the tax deductions and exemptions available in your state for the size of the business you own. Your accountant or financial services provider will be able to help you here and might save you some time and guesswork. This process is relatively inexpensive and can have huge rewards if you haven’t amended taxes in the last 2 to 3 years. So many businesses have missed deductions, so get a good accountant on the case who knows the tax code well. Who knows how much your tax returns might be?
Even if you don’t work in a tech-orientated industry, there are plenty of free software apps available to help your business. Tasks like project management, inventory monitoring, and automating certain processes can speed things up around your company. This saves you time and money as a result. It’s also a chance to look at the different processes going on within your business. Don’t be afraid of new technology! It could be the difference between being snowed over with administration work during the holiday period or kicking it on the beach in Boca.
10. Party Down
We are always ready for a good time *reveals a flask from a backpack.* But, if you are currently using the word “party” as a verb, maybe it’s time to cut that out. Cut down on the staff birthdays and lunches. Team building activities are important, but they must be carefully planned and budgeted for. Look into the perks and benefits your employees enjoy and see if those costs can be reduced or even repurposed. There might be new ways to develop your staff in their careers. This investment allows them to upskill, which helps them grow. You also promote more driven employees rather than those who simply want a few extra benefits. There is always room for improvement.
“Help me, I’m poor.”
In the critically acclaimed movie Bridesmaids, *ahem* Kristin Wiig fought her way into first-class and said, “Help me, I’m poor.” Seriously, we felt that. As small business owners, we all know that desperation all too well. But, you are now empowered with potential and powerful saving tips that will take you to the next level *standing ovation.* With these tips on how to save money, you’ll have a toolbox to approach squeezing profits out of your business. You might even find a few new places you’ve been neglecting. When you go over your company’s different aspects, you might wanna call for backup *raises hand.* Alchemy Accounting can give you an objective view of how to get the most out of your business—we are sort of good at that. We know how to save money fast, which means you can run your business and join first-class without the Bridesmaids-level humiliation—big win.
How stable is your Financial Foundation?
Find out in just four minutes!
Take our Financial Foundations Assessment quiz to find out where you're rockin' your finances and where it needs a little more TLC.