You made the decision to start your own business, and things are going well. You find the customers you need to pay your bills every month, and maybe even something extra you can put towards growing your business.
Growing your company allows you to accept bigger clients, serve more people, and eventually hire employees of your own, but it can take money. Before you can sell to hundreds of new customers, you need to have the product ready to sell them. You can save for these purchases over time, but if you want to grow quickly, this means investing extra money in your business above what you can save at the end of the month.
To get cash quicker, many entrepreneurs borrow money from friends or family, charge purchases to a credit card, or take out a loan, so they don’t have to wait for their savings. If you want to avoid going into debt, however, you might be able to raise the cash you need by cutting your monthly expenses.
Some cuts come with steep trade-offs. For example, you can save money by limiting the hours that your business is open, but this also means giving up on any potential business during those times. However, some cost-saving measures can help reduce your expenses where the only real cost comes from the time you spent planning them.
Buy in Bulk
Every company has things that it needs to purchase regularly to keep their business running. These supplies are things your business needs to run, and you find yourself running to the store every few weeks to pick them up.
In many cases, suppliers offer discounts when you purchase many of these products at once. Individually, the amount you save might not seem like a lot, but it adds up fast. If you have the money and space available, buying everyday items in bulk can save you a lot of money over time, cash you can put into growing your business.
Join a Business Cooperative
For some items, particularly food or anything that can spoil, buying in bulk might not be possible for your business. You use the same supplies regularly, but your company doesn’t use them fast enough that bulk purchasing makes sense for you financially.
One way you could still take advantage of bulk pricing is by joining a business cooperative. These organizations combine your purchases with other member companies, allowing you to buy supplies for prices lower than what you’d get on your own. Most cooperatives charge some form of a membership fee, but the potential savings they offer can pay for the fee many times over.
Outsource Your Bookkeeping
As a business owner, you spend a lot of your time dealing with things that aren’t making your company money. You’re the creative mind behind your company, so every hour you spend dealing with the details of running your business is an hour where you’re not growing your business. Of course, there are some things that you have to do as a business owner, but you could save a lot of time by outsourcing background tasks, including:
- Bookkeeping: Make sure that payroll, taxes, and bills are paid on time and accurately tracked.
- Cleaning Services: Keeping your business clean should be important to every employee, but having a cleaning company visit every few weeks can let your team focus on making more money.
- Digital Solutions: Renting services from a large provider can help make storing things online or managing your website easier.
Hiring someone else costs your company money, but it can also save valuable hours of your time, hours you can use to try and make more money. Having a specialist manage these tasks can save you money in other ways as well. For example, a professional accountant managing your finances is more likely to understand your taxes and help you avoid costly mistakes and to take advantage of tax deductions you might not know about.
Saving To Grow
Keeping your costs in check can help you have more money each month to invest in growing your business, helping you avoid taking on additional debt. If you have a structured settlement or annuity and want a cash lump sum to jump start your growth, you could sell all or a portion of your future payments. Contact Peachtree Financial today to learn more about your options.
Peachtree Financial does not provide legal, tax or financial advice. Please contact independent professionals for those services.