For this post, I wanted to discuss a topic that I’ve been thinking about a lot. The reason for this is because, admittedly, it’s something that I didn’t implement too well for my business this past year. I’m talking about saving money in your business.
I know saving money can be difficult when you’re just starting out or in the process of growing your business when you don’t have a lot of money coming in yet. It’s this challenge of thinking about how to pay for everything you need to pay for, how to make sure that you pay yourself, and if there’s anything left over after all that.
I truly believe that saving in your business is critical and shouldn’t be a last priority. So, I have some steps to help you move it up on the priority list and help you save money easier. I discussed everything in detail in the video above, but here’s an outline for your reference:
Step #1: Track Your Cash Flow
- Choose an easy-to-use tool
- Rolling 3 months
- Identify your lowest point
- Decide on your floor
- Shift around as needed
- Check in every week to start
Step #2: Set Money Aside for the Important Stuff
- Tax Savings
- Emergency Savings
- Owner’s Pay
Step #3: Keep the Money Separate
- Separate Bank Account
- Envelope System
Step #4: Automate It
- Set Your Goals
- Break Those Down Into Weekly / Monthly
- Automate the Withdrawals
Step #5: Trim What You Don’t Need
- Do a review of your business expenses
- Determine the ROI of each expense
- What can you reduce or eliminate?
- Where can you get creative?
Sometimes the idea of figuring out how to save more money can feel daunting, but the truth is that it doesn’t have to be. I hope these will help you in saving money in your business this year! If you still feel like it’s an impossible goal because your business is not making much, check out this post about what to do when your business is losing money.