Life as an entrepreneur and owner of a small business can be both complicated and challenging. There are the day-to-day managerial tasks, like dealing with staff members, and there are the larger, broad duties, such as creating an effective financial plan and ensuring that the entire operation is moving in the right direction.
Great money management and some financial savvy are vital for an entrepreneur. Without a firm understanding of budgeting and accounting, the entire small business might wind up in some serious trouble. So, it is up to the owner to make sure he or she understands all the important details.
In order to help with this valuable goal, here are four financial tips and tricks that will benefit a small business:
1. Take advantage of technology
Technology can be the best friend for a company. Without these tools and resources, it can be a lot harder to keep everything moving in the right direction. According to SmallBizClub, there are plenty of ways to save on software while not skimping on practicality at the same time. For example, there is Google Drive, a cloud-based system that allows users to store information and retrieve it from any device that has an Internet connection. As a result, entrepreneurs can upload important documents from their tablet on the go and have easy access to them back at the office on a computer. Other similar resources can also provide immense value for a low price.
2. Collaborate with other small businesses
One of the best things about being a small business is the ability to network. Entrepreneurs can link up with others in their industry or region to work together, share services and communicate new ideas. SmallBizClub noted that joining a co-op can be a great way to save money. This will lead to a support structure full of like-minded people who are willing to work together for the greater good. As a result, there could be an influx of new customers, lower costs on office supplies and the ability to buy many things in bulk.
3. Find tax breaks and deductions
Tax season can be one of the most stressful times for a small business. Filing might end up being a costly proposition, full of headaches and time-consuming paperwork. However, taxes can also be a great way for an entrepreneur to end up saving money. SmallBizClub explained that there are a number of tax breaks and deductions that are often overlooked. Taking advantage of these will lead to savings. For example, it is possible to deduct Internet service, educational classes and training seminars, home office utility bills and eco-friendly upgrades. Believe it or not, but there are many ways for a small business to save money during tax season. However, any decision here should first be discussed with a tax advisor.
4. Get creative with marketing
For a small business, yearly marketing costs can become extremely expensive. Thankfully, there are plenty of ways to save money here while still getting all of those benefits and rewards that are so desired. According to BusinessNewsDaily, a fledgling venture may be confused about where to spend money on this aspect. Mistakes can lead to an off-track financial plan, but that can be fixed with experience.
"Today's [marketing] spend is complex and includes management of marketing materials, printed materials, training materials and promotional items," David Holland, CEO of branding and marketing firm DataSource, told the news source. "Beyond print, marketers need an integrated plan to distribute elements across all channels: Web, social, mobile, email, promotional merchandise and more."
Holland added that hiring additional staff members to handle content creation can actually be beneficial in the long run. It won't strain one person too much, and a freelancer can provide valuable marketing services for a low cost.