Whilst we work hard in our businesses and can work to make more money, don’t forget about spending less, or more importantly, spending effectively and not wasting our money and other resources. Learn about business money saving tips. Here are a tonne of great, practical and realisable tips you can save real money in your business immediately. It’s a matter of identifying where you can save, developing a new strategy and then implementing.
Business Money Saving Tips
Have a budget, or if you don’t like the word ‘budget’ think of it as ‘Profit Planning’
When you write down what you intend to spend, and back prior months comparing actual against the budget you will start seeing issues, variances and ways you can improve. The figures will speak to you.
Ensure your bookkeeping is right and current
When you have current books you can review your figures and make educated adjustments. Accuracy in your bookkeeping will also mean you’re paying the right amount of tax and GST. Very few of us like paying taxes, and certainly not paying more than we should. Good bookkeeping and a switched-on accountant will help you legally minimise your tax and pay the right amount of GST.
This should be done weekly and notes kept. When you chase money, you get paid. I had a client many years ago who said to me “Donna, I only pay you when you scream”. It’s a statistical fact that only 25% of businesses do regular debt collecting and I know many businesses that (literally) banks on that. The sooner you’re paid, the less you have to borrow, have on credit cards or lose because a percentage of aged debtors will not be recouped.
Review your expenses
I worked with a client a few years back and in talking one day, it came to light he was still paying for insurance on a rental property he’d sold 2 years prior. If you purchase, trade-in or dispose of an asset, be sure to adjust the insurance accordingly. For this reason (and many more), it’s good to run a fine-tooth comb through your expenses and ensure you’re not throwing money away. Remember in your review not to simply cut the things you can (such as your marketing or staff training) but rather, review to be effective with your spending and spend money only on what delivers value or fulfils a need.
Consider your software and apps
As an experienced business coach, I’ve worked with a few businesses that when we assess their software and subscriptions we find they have more than they need. (And yes, some I work with don’t have enough and are essentially not as effective as they could be). Are you subscribing to duplicate services or those which are not really optimal for you? Are some still hanging around because they were once relevant, but less so now? There are an incredible amount of free items online and open source software options that work really well.
Buy fuel at the right place and the right day of the week
Fuel prices really do vary, as do the times of the week when they are lowest. A Monday (or Tuesday) is better to buy than a Friday, so educate your team (and yourself) to buy at the beginning of the week, not when you happen to run out. Maintenance of your vehicle helps as does ensuring your tyres are at optimum PSI also benefit. Slowing a little and avoiding breaking all the time also helps your vehicle.
In light of the prior tip, give careful consideration if it’s best for your business to drop or pick up yourself (using man-hours, vehicle wear and tear, fuel and possibly very expensive tolls) consider a courier. If you shop around for a good deal (and even pre-buy vouchers) you’ll find that the savings are exceptional and you and your team can focus on what’s really important in your business.
Streamline your business
Particularly in service-based businesses, the greatest resource (and cost) is wages and man-hours. If you are duplicating, are ineffective or staff are wasting time (either because of outdated manual systems, lack of training or simply they don’t care) then you need to change it up.
Shop around once a year for your insurances
But be sure you’re comparing apples to apples. Cheap doesn’t always equate to good, especially when it comes time to make a claim.
Ask for a better rate with your bank (or banks) as loyalty does not usually pay
There is actually a term for it – ‘loyalty penalty’. I’d first recommend you shop around online and know the current rates. Especially look up your own bank as I’ll bet their advertised rate is better than what you’re getting. Ask for a better rate on any loans and if the bank doesn’t want to come to the party, talk to your Finance Broker. All banks are not the same in this regard and the savings (if you take a little time to do this) can be astronomical. Naturally do this also for your personal and home loans as that’s likely to get the greatest results.
Well, here is the first half of the business money saving tips … so many, I had to split this into two blogs. My next blog will be the last half of these tips, so stay tuned to see the rest. There are so many ways we can save money, improve our business and generally reduce waste. It starts with identifying issues and making a decision to take action to change what we are doing. If you’d like to talk to me about how I can improve your business and what I offer in my business coaching, please reach out via mobile 0411 622 666 or my contact page. My passion is your potential!