Money Saving Tips for Business Owners
Let’s talk about saving you—and your business—money. It’s a popular topic for all entrepreneurs, but implementing your plan is another thing! Did you know that in the U.S., personal savings rates have fallen from their peak rate of 12.9% in the 1970s to the lowest ever, just 2.4% in 2017? You are not alone.
We have some personally-tested money savings tips from the Tribe. Each one of these practices is something we have encountered, tried, and can attest to. We’re bringing them to you now because our goal is to uplift and inspire women to embrace a better relationship with money. Let’s help each other break that dismal savings statistic!
Establish your online assets early.
Avoid getting slammed with unexpected start-up costs by establishing all your online assets before you even start selling. This includes things like your domain name, website, email address, any social accounts or distribution softwares. These behind-the-scenes assets are absolutely vital for your business success, but too often people don’t even realise they’ll probably have to pay for their domain, and website and email! Don’t let these slow your power for launch. Take care of them first so you can rest easy when you’re ready to roll.
Make it easy for people to give you money.
This tip is partially inspired by the discussion of a Side Hustle Pro episode with Nicole Walters of The Monetized Life and 1K1Day. Walters says: “You can’t expect people to give you money if you don’t give them a way.” Whether you’re selling a product or something more service-based, you need to have clear calls to action (CTAs) and easy ways for people to pay you. Think online credit card systems, PayPal, Square or even a donate button. You have to make it SO easy for people to pay you. Otherwise, you’re asking for something you just can’t get.
Take advantage of nationwide business services.
You don’t have to go it alone. That’s one of our core values here at the Tribe—that we can support and uplift each other! In addition to the Hatch Tribe Members Circle, are also organizations to help small business owners under the U.S. Small Business Administration, which offer free consulting and training at their more than 300 chapters in the United States. This is one of the top tips from Michael Glauser’s book Main Street Entrepreneur: There are nearly 1,000 Small Business Development Centers in the United States that offer free consulting services, and over 100 Women’s Business Centers!
Form strategic partnerships.
Another thing we love and encourage entrepreneurs to explore our strategic partnerships. Beyond the feel good vibes of working together with someone who wants to help you succeed—this can save you a ton of money! Think about partnering with other local companies for your launch; maybe you can work out a mutually-beneficial deal. What about a referral program with a sister company? Many businesses are able to partner or trade once you’ve established a good relationship and credit. It’s worth trying to establish these relationships, as they can be lifesavers when you need the support.
We know it’s not the most fun thing, pouring over receipts or those little lines of bank statement text. But just do it! You’ll thank yourself later. Your business might be losing money in ways you don’t even notice. Little things like bank fees, memberships you forgot to cancel, or recurring charges through services like PayPal can add up to significant costs, at least the price of a software you really do use or that membership you’ve been saying is too expensive. Mobile apps like Mint or expense tracker Expense can help, itemizing and categorizing your spending. Once you see those red flags clearly, it’s easy to eliminate them—and that’s more money in your pocket.
Take advantage of free software and those free 30-day trials.
There are so many software options now! That’s good news for us, the consumers, who get to take our pick. In order to win over customers and prove themselves, many companies offer a free basic level membership or a free trial period (Canva, MailChimp and Asana are some of our favorites). You may not get the full functionality of paid versions, but it’s enough for many small to mid-size companies, and trials will give you enough time to decide if it’s actually worth paying for the higher level.
Automate your savings in their own account.
You’ve probably heard the saying: “Pay yourself first.” This is that idea put into practice. First, separate your savings account from your checking so you’re not tempted to (or worse, accidentally) dip into it. Then, set up a pattern for saving. This may be the number one thing you can do to reverse that sad statistic about the U.S. savings trend. Make it automatic! There are apps for this too, ov course. Qapital allows you to set savings “rules,” for example rounding every purchase up to the nearest dollar and depositing the spare change into your savings. One more thing to keep in mind: you might find significantly higher interest rates with a certificate of deposit (CD) over a savings account, IF you know you won’t need to access that money for a while. The point is, save like you mean it.
We hope these money-saving practices help you to run your businesses more confidently and efficiently too! We’ll leave you with this anonymous but spot-on quote:
“The real measure of your wealth is how much you'd be worth if you lost all your money.”
Do you have another tip for saving money?
We’d love to hear it! Share in the comments or join the conversation inside Members Circle.