I need to increase my revenue before I save - Saving money every month should be non-negotiable. Consider saving a percentage of every invoice, even if it’s small - you can increase it once you’re used to putting money away every month.
I need to save towards something - Yes, there might be a big-ticket item that you are saving towards like a delivery vehicle or new shop fittings, but you shouldn’t need a reason to save money.
Banks are my only savings options - Putting your money into a savings account is convenient. But being able to quickly and easily access your money increases the temptation to make impulsive financial decisions and you don’t earn much interest.
Putting cash away is the only way to save - Cutting operational costs in your business is a quick way to free up money that you can invest.
Here are a few tips:
- Share office space with another small business or adopt a virtual business model, which doesn’t need a physical office, saving you on rent and operational costs.
- Go green - cut down on paper use, switch to energy-saving light bulbs and appliances, be smart with water, buy refurbished furniture.
- Run your business in the cloud. You can access just about all your business management software in the cloud, which means you don’t need to invest in expensive hardware and the skills to maintain it. Cloud-based accounting solutions also help you manage your inventory, so money isn’t tied up in surplus stock.
- Pay invoices on time to avoid interest and late payment fees. Take advantage of early payment discounts.
- Cut down on meetings so your team can focus on strategic functions.