If you’re a business owner, you’ll know that costs can seem to come at you from all directions. Taxes, insurance, bank fees, and even payroll can leave you with a full time education just to keep up (don’t even get us started on the new 2020 minimum wage mandates). Just when you think that you have everything covered, that bill that you never expected to have to deal with rears its ugly head, and you have to take yet another dive into the business savings pot. However, there are some ways that you can save yourself a bit of cash in your company, that may be worth considering, and we’ve noted down a few of them here for those looking for some great ways to say ‘no thank you’ to those massive costs.
When you’re met with a bit of business success, your immediate idea is that you can spend a little bit more of your money now, both on your own wages and on the costs within the company. Sure, you can increase your spending somewhat, especially if you’ve made a big and unexpected profit, but don’t get ahead of yourself here.
As you will know by now, costs can come out of nowhere, and you don’t want to be in the position where you’ve already allocated all of your money when they do. It is key to remain in a frugal mindset, and don’t live beyond your means, as this could be something that you live to regret later down the line.
Pay out monthly now, not in a lump sum later
When you discover that you have to pay out a huge cost – for example, a legal bill or a large tax payment as a result of a miscalculation – this can really put you under a lot of pressure for a few months. If you just don’t have the cash to pay for it upfront, you may be lying awake at night thinking, ‘how are we ever going to get around this?’ However, to prevent these things from happening you should try to pay monthly insurance for something now, rather than forking out later. Companies like LegalZoom even offer these types of services for small businesses that want continuous legal protection (which works like an insurance) so check this out.
Be careful about what roles you hire for
If you’ve only just started out in your business, or even if you’ve been trading for some time now, you need to think about the job roles that you actually need within your business. Don’t hire somebody for a job that doesn’t take up much time a day to complete (unless you’re going to hire them on a part-time basis) as you could regret this when you’re paying out a lot of cash, for a role that you don’t really need to have. For tasks that you don’t have time to do, look into the outsourcing opportunities out there, as it won’t cost you that much but you’ll have it covered by somebody who knows what they’re doing in the relevant field.
So, if you’re a business owner, why not consider these financial ideas, and see whether they can help you?