Smart, money-conscious small business owners can see rewards manifest themselves in a number of ways, from more innovative, motivated staff to additional resources when times are tough. While it can be tempting to splurge here or there, the best CEOs and company leaders know when it pays to be frugal.
In most cases, the easiest way to achieve success is to realize how much money is too much, and when it is time to stop buying and start saving. Adopting this mindset as a small business owner can be advantageous for several reasons, as playing fast and loose with cash can actually cause a lot of headaches.
However, keeping a lid on the business banking account may seem easier said than done. In order to pull it off, here are a few tips and tricks:
Start off small
Even if a small business receives great, affordable commercial loans and millions from investors early on, the company still may not need a flashy office and a ton of expensive gadgets. In fact, the best course of action – regardless of the budget – is to start off small.
Jerry Jao, co-founder and CEO of Retention Science, wrote in Entrepreneur magazine that setting up an office on a shoestring is an effective way to become a frugal business leader. For example, use the Internet to locate cheap furniture, instead of buying brand new pieces. There are always deals to be had, and many cheaper office supplies can be just as useful as the name-brand stuff.
Use social media
While an office space can be one of the most expensive startup costs, close behind are those associated with marketing. If this is the case, it can be smart to save money by turning to social media.
According to Wall St. Cheat Sheet, websites such as Facebook and Twitter can be just as useful as a big marketing campaign. In addition, a custom website can also carry some of the load, and that address can be shared online or via cheaper, more traditional advertising methods, like a local newspaper. YouTube can also be a great way to expand a business' exposure, and a low-cost video uploaded here can put a personal touch on the company as a whole.
Overall, there are plenty of ways a small business owner can be frugal and save money for the future of the firm. Taking advantage of these strategies can be extremely beneficial for the long-term health of the venture.