One of the most crucial things that a budding entrepreneur needs to know, is when to spend money and when to save money in their business. If you have your own business and you don’t know these things, then you’re likely going to waste your money on the wrong things and leave little cash in reserve. This post should help you out!
Spending money on business investments is a good way to spend money positively. Although you may have to spend a lot of money in the beginning, as this is an investment, you know you’ll eventually reap the rewards. This might be in the form of even more cash, or even having spare time. Spare time might seem like a silly thing to spend a fortune on, but you’ll have time for more important things. Then you can focus on ways to bring in more money. Eventually, your investment will have paid for itself! So, what sort of things should you consider investing in?
- Programs that automate your business.
- Things to make employees lives easier.
- A social media manager.
- An accountant.
- Accounts with companies that allow clients to pay in different ways. E.g. a credit card reader.
- A web designer/marketing company.
- Team building/company training.
These things can help you to make even more money if you do it right!
Doing It Yourself
One thing that can save you money in business, is knowing when to do things yourself. There are certain things you can DIY, which can save you a lot of money in the long run. You just need to be sure that you’re capable, or you could spend more time and money rectifying your mistakes in the long run. What sort of things can you do yourself?
- Decorate your office/business premises.
- Make your own website (if you have a good knowledge of websites and SEO).
- Marketing (if you’re sure you have time and resources).
- Accounting – could be a good idea when you’re just starting out.
Providing you know what you’re doing, you can save money by DIYing these things!
Business luxuries are nice, but they aren’t necessary. This includes things like that expensive espresso maker, which is a lot more expensive than a simple jar of instant coffee. Ideally, you should aim to limit the amount you spend on luxuries in your business. You should only splash out on these things when you have a steady stream of income. Even people like Sophia Amoruso were careful when their businesses were just starting out. Although her famous clothing business just continued to get bigger and bigger at an alarming rate, she waited for years until buying herself a holiday. Somebody ordered comfortable office chairs without asking her, and she sent them right back too! Luxuries can boost morale and be beneficial in some ways, but you need to be smart about spending your money on them. Luxuries include:
- Coffee makers.
- Luxury office chairs.
- High end computers and equipment.
There are many more luxuries you could buy depending on the nature of your business. Avoid splurging on these items!