Financial Frugality for Small Businesses

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Small business, especially those who are just setting up shop, often have a hard time making the books balance at the end of each month.  Frequently outgoings and expenses outweigh income particularly at early or developing stages in a companies development. As such, it is important to ensure that any unnecessary outgoings are cut out and that any necessary expenses left after the cull are kept at a bare minimum.

Free Marketing

It is now not unheard of for businesses to spend no money at all on actual advertising products and still reap all of the rewards of a full marketing campaign. How? Simply ensure that one of your staff members job role includes a few hours every week focusing on marketing the company. Use this time to attack the cybersphere with your products and/or services. Think; blogging, Facebook, Instagram, Twitter and other networking or social sites that you can infect with your message.

Bulk Buying

Often buying just one of everything at a time is not the most cost effective way of doing things, even if you do only need one flip chart refill and two board markers. In the short term it is cheaper just to buy what you need right then and there but try and have longer vision than that. Over the course of a year, just work out how much money you would save if in January you had bought a refill multipack and a box of ten board markers. All of these little changes add up!

Support in Kind

Being in debt can be a bit of an endless cycle for small businesses for just as the company starts to flourish all of it’s generated income gets taken out rather than being ploughed back into the business. Get away from this restricting cycle by instead accepting offers of support in kind rather than financial support. Perhaps someone would volunteer some extra working hours or the free hire of an event space for example?

Taxes and Death

The two inevitable facts of life! Every business has to pay tax as soon as you are above the base earning threshold which is currently set at just under £10k. However not all business will pay the same % of their income in taxes. Those that employ a professional accountant to look after their books generally pay much less tax; so much so that it is often said that a good accountant pays for themselves many times over. An easy way to save some money in the long term then is to hire an accountant and hand over your books!