Are you looking for smart tips to tackle expenses, spend less, and make more in your start-up? Whether you’re just beginning, or are a little further, you know that you need to be passionate and smart to succeed. That’s why it helps to keep these five tips in mind for launching a successful small business.
Ditch the Debt Habit
If you’ve had a habit of putting everything on credit, this bad habit may be catching up to you. It’s tempting to put things on a card when you’re starting. But, over time this practice can help you drown in debt, pay extreme amounts of interest, and prevent you from achieving your goals.
Make More Money
It may seem old-fashioned or too boring, but one way to spend less is to make more. If you are able, make more money within your current business. The classic moves to do this can include:
- Increase sales volume to current customers
- Increase sales frequency to current customers
- Increase upsells to current customers
- Increase target market and reach more new customers
- Increase sales volume and frequency to new customers
- Promote repeat sales and upsells to new customers
If you don’t have a solid business model yet, you may need to make more money outside of your start-up. This could include part-time gigs, freelancing, and consulting jobs within your field.
Look at your money-making options and make a strategic plan. The sooner you have the funding for your ideas, the sooner you can get the ball rolling in your start-up.
Be Ruthless in Spending
Before you race onward, take a look at all spending. Get ruthless about the little things, also known as discretionary spending. You may be able to slash your bills by doing simple moves such as stopping a coffee habit, bringing your food to work, and putting a moratorium on shopping.
While this won’t go on forever, changing your spending habits can also help you reduce your debt load. Put all or a portion of the money you are saving towards your debts. This can help you do two things at once and move you closer to having the money you need without incurring more debt.
While you’re looking at spending, take a broader view of all spending in your business. Examine your shipping contracts and review all vendor invoices. If you don’t have a knack for pouring over the books, work with an expert in carrier invoice reconciliation to shift the needle towards profits instead of expenses.
Carrier invoice reconciliation can be a mind-numbing process. This is why many small business owners prefer to outsource this difficult process. Invoice audit recovery programs typically help businesses save 1%-9% on their total invoices. Isn’t that something that would be useful right about now?
Create An Emergency Fund
As you know, in life and business, unexpected things happen. Some business experts suggest coming up with cash emergency funds to cover six months of living expenses. If that seems too extreme, create an amount that helps you breathe. You may not have all that cash lying around.
However, it could feel easier if you know where you could get the money, should you need it. Perhaps your partner or spouse could go back to work. You or your partner could get a part-time consulting gig.
You may be able to live in a less expensive house or apartment if you have to. By having an emergency fund, or an emergency strategic plan, you can increase your peace of mind.
Think Big and Act Smart
When you’re starting, it’s essential to have the guts and grit to think big and act smart. You’ll need a big vision to help you face the many issues and challenges of a start-up. And, you’ll need careful attention and diligence to make smart decisions.
This kind of balance will help you make smart choices in your small business. You won’t overspend on expensive office furnishings when you can work off of a simple desk. You won’t spring for a glitzy high-end website when you can work well with a basic model.
As your profits increase, you’ll invest more in furnishings, branding, and marketing materials. This kind of balanced and grounded approach can help you make steady progress towards your entrepreneurial success.