We all want to save money, and if you are runing a small business from home, you are no exception to this.
Many small business owners have chosen this path instead of full time employment, and in order to save childcare costs. It’s a bit of a balancing act, and, particularly at the start of a business , money may be tight.
When the responsibility for running a business is sitting firmly on your shoulders, it can be tough, especially if you have to ensure that your business is in profit at the end of the year all!
Luckily, there are some smart ways that mumpreneurs can save money while running their business. Here are some suggestions
Go a little greener
One way that mumpreneurs can ensure that the business they are running is more financially efficient is to take a leaf out of the eco-warriors book. Yes, seriously, doing the best for the environment is also something that can end up saving you a lot of money in your business as well.
The reason that going green is such an excellent choice for your business spending is that many of the facilities we pay for are ones that come from the Earth’s limited resources. What this means is that by managing such resources like electricity, water, and gas much more carefully we are preserving these for the long term, as well as saving overhead costs when running our businesses. Think about how you travel – can you cycle or use public tansport instead of running a car? What about electricity costs at home? Could you make savings by using a smart meter to track your electricity usage, for example?
It is also possible to save significant amounts of money while running your business by embracing a paperless office. Paper is again, a resource that we have to buy, and it is one of the things that get most wasted in an office environment. Yes, it is possible to recycle it, but it’s even better for the environment and your budget if you abolish it in the first place, something that it’s super simple to do with digital technology that is readily available.
Get Tax Savvy
Next, you can save some serious money that will help your business edge into the profitable zone, if you get tax savvy.
Now, I know that the mere mention of tax make some business owners break out in a cold sweat, but it’s not as complicated as you can build it up to be in your mind. In fact, if you take the time to grasp how tax write-offs work you can help to preserve your company’s finances. To assist you with this, why not watch the clip below?
Alternatively, it can help to remember that if you have business expenses, these can often be removed from your overall taxable total, if declared to the HMRC. See some advice on how to do this at telegraph.co.uk. What this means is that you will have to pay tax on a smaller amount and therefore by removing these deductions you can reduce your tax bill at the end of the year. Seek help from an accountant if you want to know how you can apply this to your own business.
Another way that tax can help you to save money on running your businessmay be to register as a limited company. This isn’t even hard to do, as you can form a company with yourcompanyformations.co.uk and other services like them online. They will even do all the hard work for you!
Registering as a limited company is not the best option for all businesses and so, once again, it pays to take professional advice before you decide if it would benefit you. But some of the potential benefits are that your company might not have to pay out such high personal tax, and company owners can take payment in the form of dividends instead of a salary. on the other side of this, you will have to pay out for filing company account every year, and if you are not familiar with tis then you will certainly have to pay accountants fees.
It is vital to remember that time is money, even in the smallest of business and this means if your process flows are not efficient for the tasks you do on a regular basis, you are wasting time, and therefore money! Time spent on pointless tasks is time that would be better spent on income producing tasks. You can read more about at bytestart.co.uk.
Simplifying your business process can help save money.
To that end, it’s always worth automating things wherever possible, and if this is not viable to do, then creating a master template and an easy to follow set of instructions that will allow anyone to complete the job in the most efficient way is the best option. Then you and your employees will be free to devote yourself to other tasks, and so you will be getting the best value for money out of the workload.
Negotiate Better Prices
Last, of all, mumpreneurs can save a fortune in business if they learn to negotiate well. After all, most companies need to buy in resources in bulk, and that means if you can get a good deal you can save a decent amount each time you buy.
To help with this, it is essential to build good relationships with your suppliers on a one to one level where possible. Something you can find out more about by watching the video below on how to improve your negotiating skills.
Just remember too that most people, as wealthfitnesscentre.blogspot.com suggests, catch more flies with honey, so don’t forget to be as sweet as pie, even if you are asking for a massive discount that could save your business a fortune!