Running and starting a small business can be hard. Unless you have a big portion of your income saved in savings, spending and saving can be especially difficult. Here are a few tips to increase your business’ efficiency when it comes to saving money.
Not only can you deduct a portion of your rent or mortgage interest and utilities as a business expense, but you can also deduct a percentage of various home maintenance expenses with a portion of the cost of services such as house cleaning and lawn care.
Short Duration Leases
If your business is fairly small, you may not need a large space. Not needing the bigger office now, but may later need it, you should try looking into a lease on the shorter term. Using space to your advantage will save you and your business a ton of money. Plus, the prices of buildings may go down over time.
Collect Cash in Advance
Collect a percentage of cash up front with every purchase from customers. This will help your company reduce the risk of having no cash flow at all and it will also save money in collection efforts. Try this! Require a 25% down payment on all future purchases.
Do everything you can to avoid fees like ATM sub-charges, debit card fees and bounced check fees. Try switching backs to cut out the significant costs. It may just be what you need to save your business money.
Use a 0% Credit Card Balance Transfer
Transferring the debt balance from one card to another card that has a 0% interest card is a great way to save money on interest charges and most importantly, pay down your debt.
There are many ways to save your business a ton of money and taking one step at a time is a great way to get your business where you want it!