The idea of starting up your own business is an exciting one, and sometimes that excitement can cloud the judgment of an entrepreneur, especially when it comes to budgeting. Let’s face it; business finances aren’t all that interesting or that fun. There are, however, necessary.
You want to get your business up and running as soon as possible, but you need to do it smartly. The more you save in the initial stages of your business, the better off your business will be, and the more successful it will become.
Here are some of the best budgeting tips:
Keep personal and business finances separate.
You should never merge the two together. You need to know how much money your business is making and bringing in, as well as how much you need to invest in it for the business to survive. Keep them separate by giving yourself an annual salary and look at business loans and credit cards.
Keep all your receipts.
No matter the size of the cost, keep all the receipts so that you can make claims back on certain expenses but also see exactly where your money is going. Even if you are buying the office coffee and tea, this cost needs to be accounted for, as even the smallest of costs can add up and make a significant impact.
Don’t forget your taxes.
Anticipate taxes early and put cash aside for them. Open a separate bank account and set aside 20% of your gross revenue. Not anticipating these extra costs could cost you late fees.
Shop around and haggle with suppliers.
The first deal is rarely the best, and by shopping around, you can get a better understanding of how much certain things cost. This can then open up the opportunity to haggle with suppliers.
Haggling can be awkward, but as long as you are polite and understanding, there is no harm in enquiring. Ask the following questions:
- Can I get a discount if I buy in bulk?
- If I pay early, can the price be reduced?
- Can I get a discount if I bring you more work from other businesses?
Hiring a freelancer can be a cost-effective way of getting certain jobs completed without paying for a full-time employee. Whether you need a writer, graphic designer, or photographer, there are many freelancers out there who can help you out on either a short-term or long-term basis.
Research the best software.
There is a lot of software out there, and deciding which is worth your money is a difficult task. Take to the internet and find the best project management software, the best accounts software, etc. so that you don’t accidentally invest in the wrong one.
Utilize social media.
Social media is a cost-effective means of building a brand and promoting your business. Not only is it free to create a profile on social media platforms, but you can teach yourself how to get the very best out of them. If you are not sure how to do this, then hiring a freelance social media manager can be a great return on your investment.