Being an entrepreneur, you are free to make your own decisions and set your own schedule, but that also includes sole responsibility for the money management, even when there are little funds to manage. Many businesses operate on a shoe string and watching your dollars is something that can be done throughout the different stages of your business – not just when there is little money coming in. And with the economy in a slump, saving money is important all the way around.
So how can you run a professional, productive company and still save money? One benefit of starting your own business is the wealth of experience gained by doing a lot of the startup work yourself. This saves money by not hiring someone to do it for you. Not only can you use your own expertise and experience but you can also look to the expertise and experience of your family members. There may be someone in your family who can help get you started on a website, accounting program, logo design, etc.
At the beginning stages of a company, it makes sense to do the majority of work yourself. Once it starts growing, you may need to bring in help to keep the momentum going. If you do not have a creative bone in your body or lack technical skills, it’s necessary to find someone who has those talents.
Should you outsource or hire? Outsourcing can save on employee expenses, such as taxes and benefit costs. In addition, outsourcing provides an opportunity to “test out” someone before bringing them on board on a permanent basis. Take advantage of the many outsourcing and freelancing sites out there to find perhaps a mom professional with the talent you are looking for.
Bartering is an excellent way to save on costs while getting a quality product or service. Think outside the box for creative ways to swap services in exchange for what you need. If you need a web designer, could you exchange your product or service to reduce or eliminate the expense? Or you could offer to provide a link to their site on yours, which may be appealing especially if you bring a lot of traffic to your site. Design costs can be high for the new business owner as well. If you need a website, logo or business stationary, take a look online at the many websites that offer templates. You can purchase a professional web design and customize it to your liking. You also can find many talented home based graphic artists and web designers who are willing to create a custom website, logo or stationary at a much lower cost than a brick and mortar design agency.
For home-based working moms, the balance between your kids and quiet time is complex. A solution may be to contact your neighborhood churches, high school or colleges for students who may want a few hours of work each week. Finding a student to watch the kids for a couple of hours a day might be a big enough break for you to focus on your work. You also may be able to find college students to help out with some of the administrative or business tasks that you do not have time for or lack the expertise in.
Housework also finds itself on the backburner when your business consumes much of your time. As your work piles up, so do the piles of laundry, dishes, etc. A student helper could spend a couple of hours a week keeping you on track and digging you out from under the piles.
There are many ways to go about saving money, but the biggest impact on finances is creating a solid and reasonable budget – and sticking to it. Managing both a company and household budget can be overwhelming. Comparing actual to budgeted amounts quarterly will help you stay on track. It will also help you plan accordingly for the following year when trying to identify areas where you need to reduce expenses.
