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5 Ways to Save Money When Running a Business

Lewis Robinson Jan 11, 2020
Being a business owner can be equally exciting and challenging, whether you are an entrepreneur working for yourself or the head of a large company. Saving money and then spending it wisely are key elements of financial success in both business and personal circumstances. Here are some tips to help you save money on your business expenses.

1. Keep an Accurate Budget

Keeping track of your business income and expenses is essential, but it may be especially important for small business owners and sole proprietors. If you are in one of these situations, your personal finances may be tied more closely to your company, so it's essential to make sure you keep accurate, comprehensive records of personal and business purchases.
Having a thorough list of all your expenditures may help you avoid overspending. It can also make a difference at tax time, because you may be able to write off some business costs when you file your return.

2. Use the Right Tools

No matter what industry you are in, there are tools you can access that can help you out financially. Specialized software programs, hardware, or books may help you hone your craft to improve the quality of your offerings. You may be able to become more organized and efficient by taking a time-management course or using project management software.
If you're a developer, you may be able to streamline your workflow and provide your clients with customized products when you access tools such as Payment Gateway or premade APIs.

3. Avoid Working for Free

It can be tempting to lower your prices to be more competitive in the marketplace or even offer free services in a bid to attract more clients. This practice is especially common among entrepreneurs who are just starting out. However, in most cases, working for free or for a very low rate can end up doing more harm than good.
You may attract clients who are only interested in the deal you are offering and who won't stick with you when you raise your rates to reflect the real value of your services. Working for low rates can give off the impression that you are untrained or new to your industry. Most experts recommend setting rates that truly match the quality you offer.

4. Find Investors or Sponsors

If you feel like it's time to expand your business but you don't have the financial means, you may want to consider some fundraising options. You could use crowdfunding to get a new product off the ground or consider taking on a partner. Another option is finding investors.
You could do this in a formal way by offering stocks, or you could try to find a single investor through a venture capital firm. If you have an existing group of followers, you can consider using Patreon or another membership platform to fund your expansion.

5. Consider Free Advertising Options

One of the largest expenses for many business owners is advertising. Paying an influencer or buying ads can be costly. It may work better for you to focus on free marketing methods for a while. Some things you can consider include updating your website to improve visitor conversion rates and using search engine optimization techniques to increase traffic.
Another option is to publish content designed to increase brand awareness. It's generally very inexpensive or even free to create a blog or upload videos to YouTube. Encouraging your current clients to recommend you to their networks is another low-cost advertising option.

Make the Changes

Saving money on your business expenses can be a challenge, but making just a few small changes can have a significant long-term effect. Some things you can consider include switching to free marketing methods, keeping an accurate budget, and finding new investors.