Small business owners are a rare breed. You have ambition, determination, and a great work ethic. But you’re not the best at saving. Typically, the business comes first financially, and, yes, that does take a few small financial sacrifices, but isn’t the point of working to save for the day when you don’t have to anymore? Especially if you’re working for yourself and have no boss talking about how we’re all family in this office. You have your responsibilities to the bank maybe, some staff maybe, but mostly you have a responsibility to you and yours.
But we all need pointers on saving nowadays, with the cost of living rising alongside inflation. If you’re looking for some tips on how to save in your small business, take a look at our guide.
We use the word “invest” here loosely because an accountant is known to pay for themselves. Small businesses, in fact, are encouraged to make an accountant their first hire when they get their feet planted firmly on the ground.
An accountant will know how to look at your business from top to bottom and spot all the places where you are overpaying. Maybe your material goods are too expensive or have a cheaper alternative. Or, perhaps, you’re paying for a superfluous middle manager you don’t need. Maybe there are operations that have a cheaper alternative. Whatever the case, your new accountant will sniff them out.
But the benefits of an accountant don’t stop there. Your accountant has your business’ best interest at heart, so their role often doubles as an informant and adviser, and even a compliance officer, which is helpful to avoid things like back tax.
Online marketing is the superior option to traditional marketing options, particularly for small business owners for three main reasons: it’s more affordable, it’s more effective and it’s easier.
That last one appeals to small business owners who simply want to get their social media started and think, “Well, I’m a user. I’ve seen what the pros do” and decide an Instagram account will be enough.
Don’t get us wrong, an Instagram account, well looked after, will get you far. But that’s one problem right away. A well-looked-after Instagram account will need a post every day, and if you miss one, you lose all momentum. That is going to take a small team.
But there is also the problem of the average consumer, and even consumer-turned-business-owners, not knowing what makes a good online marketing campaign. It’s all wrapped up in data, which pushes your content in front of the eyes that want it most.
And to add to that, user habits are changing. What worked when it came to content last year might not work this year, which is a harsh lesson plenty of influencers are learning right now.
Invest in a course on online marketing to really know what you’re doing. There are tactics out there that you’ve never heard of, like affiliate marketing, and that you might not think are important, like the state of your website.
The point of starting a business is to save for the future, isn’t it? So, you’re going to want to put away the maximum allowable amount every year to make sure you have enough for retirement. With a tax-advantaged retirement account like an IRA, you can add up to $58,000 annually, which includes your own contributions. They will offer some level of tax deferral for the plan year based on your contribution levels and income.
If you do choose to move on from hiring an accountant, make sure that you offer a decent package to your talent. After all, it’s your staff that will do the everyday things that will drive your business, and so you’re going to want to attract the best so that you can steer it in the right direction.
There are a few ways you can invest in talent, and businesses don’t tend to like them. The first is onboarding. Often, the best talent out there is going to have competition. You might even be surprised to learn that you’re not every potential employee out there’s first choice. The way you become that first choice is by understanding that donuts for breakfast aren’t a benefit. They’re barely a perk. Offer benefits that actually make a difference in their lives, like health insurance or a company car. Staff would rather schedule a public holiday with their loved ones than a “team-building day out”.
Once you’ve got them on board, you can invest in their talent by adding to it. Offer them training experiences in the office or sign them up for a course. Anything they use they can then bring back to your establishment and suddenly you’ve got an upgraded team without having to go through the process of firing and rehiring.
