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Owning a business can come hand in hand with having to make lots of tough decisions. While it might be one of the best things you decide to do in terms of the lifestyle you are able to lead and your satisfaction at work, it will also be tough. Your success will not be linear, and much of your success will depend on the decisions you make for your business.
One of the most important things you’ll need to think about is how you use your money. Managing your finances well is crucial if you’re going to pay your employees, cover your overheads, buy what you need to buy, and have money left over in case of emergencies. You must be smart and know where to splurge and where to save.
Being a frugal business owner doesn’t mean choosing the cheapest or most cost effective option every time. It means being able to weigh up the pros and cons of a choice against the price, so you can make the most valuable decision. You want value for money, not just savings.
In short: some things in business are worth splashing your cash on, others, not so much. Here we’re going to go into this in more detail so you get a good idea of what you should be doing. Enjoy!
Splurge: Tools That Allow You To Do Better
Splurging on tools that allow you to do better work is one of the best decisions you’ll make. Of course, this will depend on the kind of business you’re running, but in a lot of cases, the same type of tools apply, such as a high quality laptop that allows you to keep up with your website, social media, and more. You may also want to splurge on a company car if you do a lot of travelling and head to business meetings. If you need more substantial vehicles but you don’t want to splurge on them just yet, you could look at truck finance interest rates.
Whatever you do, make sure you invest in things that will actually allow you to do better, and not just things for vanity. For example, a great laptop will help you to get the job done, but a fancy swivel chair that cost thousands isn’t really helping you to do anything better (you can get comfortable chairs for a far more reasonable cost).
Save: Utilities And Supplies
When it comes to your utilities and office supplies, it should be your aim to save. Let in as much natural light as you can so you’re not wasting energy all day long. Remember, this has the added benefit of making your employees more productive. Switch out your light bulbs for more energy efficiency versions, and aim to cut down on things like paper and ink consumption by using the cloud and only printing when you absolutely have to. Do your best to save on other office equipment, too.
Splurge: Services That Save Time
If a service is going to save you time, then you should probably invest in it. Your time should be considered one of the most valuable things to you. Knowing what you’re good at is key, so you know exactly when you should be outsourcing. You should be doing what you’re passionate about, good at, and enjoy, and leaving the rest to other people if you can.
Hiring employees is one great example of something you should be looking to splurge on. It’s always worth paying a little more for an employee who has more skills and experience (providing they are a cultural fit). Outsourcing is also a great idea, as it stops you from having to make hires and further helps you to save time.
Cleaning is crucial, as having a clean workplace will make a big difference not only to productivity, but to the health of your employees. Expecting them to do it takes them out of the flow and can mean getting less done. A quality cleaning company will help you to safeguard the health and reputation of your business.
Save: Negotiate With Your Suppliers
If you’ve been with the same suppliers for a while, see if you can negotiate your contracts with them to get a better deal, or more incentives to stay. It’s always a better idea to do this after you’ve built a good relationship with your suppliers, rather than trying to get a better price straight from the get go. They will want to know that you are a loyal customer.
Your marketing is definitely worth a splurge, providing you work with an experienced and transparent marketing agency. Ideally, you’ll know a little bit about marketing before you discuss a plan with them, as you don’t want to be dazzled by fancy jargon. Just because they can talk the talk, doesn’t mean they can walk the walk!
Rest assured that if you do your research and find a great marketing company, it’ll be more than worth the money you spend on it.
Save: Free Software
There are tons of free software options available out there if you need them. There’s free software to clean your computer, software that will help you to find the best lay out for your office, software that will help you take care of your accounting if you’re a one person business, and so much more.
- This Is How Software Can Boost Your Small Business
- 4 Tips For Choosing The Right Software For Your Small Business
- 13 Free Online Business Tools Every New Entrepreneur Needs
Accounting is another splurge you should make if you are a business with a lot of incomings and outgoings. It’s always better to arrange this from the start, so that you don’t end up with discrepancies and fines later on down the line. You want everything to be as accurate as possible while saving money.
Knowing where to splurge and where to save in business can be tough, especially if you’re just starting out. Knowing your numbers and coming up with a budget should be your first port of call, but once you’ve done that, make sure you pay attention to the advice here!