Whether you’re financing your business with your own capital, you’ve gotten some startup money from investors, or you’re getting ready to pitch your company to investors, saving money should be one of your top priorities as you start your business. That shouldn’t be surprising, especially if you know how much Daymond has preached about the power of broke and how much you can get done when you’re really hungry for it. But it’s not just important if you’re tight on funds. It’s important as an integral part of your business model.
You should never be in the business of wasting money, which is why you should cash in on as many moneysaving tips as you can. Now, I’m not saying you should pinch every penny, rip off people who work for you, or refuse to hire people when you need help. In fact, I’m talking about saving money on other things so that you’ll have room in your budget to spend money where it counts and where it’ll make you more money.
DON’T TRY TO REINVENT THE WHEEL
First of all, look at everything you’re doing for your business. Is there anywhere in your organization that you’re trying to reinvent the wheel? For example, do you have someone working on an app for your mobile customers? At this point, you need to determine whether you need your own app or if it’s better to piggyback on someone else’s platform.
If someone else has already created the service or product you’re trying to create in-house, you may be able to save money by using what they’ve already done to help build your business instead of trying to create everything from the ground up.
TRAVELING FOR A CONFERENCE OR EVENT? ARRIVE EARLY OR STAY ONE MORE DAY
If you’re going to an industry event or conference, you might actually save money by extending your trip by a day or two. Everyone else going to this event is going to try to come in the day it starts (or the night before), and they’ll want to leave as soon as it’s over. That’s going to affect flight and hotel costs. You may be able to get a cheaper rate for your hotel and a less expensive flight if you avoid peak travel times.
DON’T PAY CASH FOR BUSINESS EXPENSES
Never pay cash when you’re buying anything related to your business. Instead, charge it to your business card and make sure that you include it with your tax documents when you hand everything over to your accountant each quarter or year. The more expenses you can write off, the more money you’ll save on your taxes, and the more you can put back into your business.
SIGN UP FOR ANY FREE REWARDS PROGRAMS YOU CAN
If your credit card company or bank has a rewards program that won’t cost you any extra cash, sign up for it. If you can sign up for similar programs with the stores you shop at most often, both for your business and personal needs, sign up for those too. Those rewards and discounts add up over time, and you might be surprised at how much you can save in a year or more of using them.
Follow these surprising moneysaving tips for a few months and see how much wiggle room they can give you in your business’ budget. Before you know it, you’ll have the cash you need to focus on improving your products and services without asking for more from your investors.