The aim of self-employment, and business in general, is to earn more money than you spend.
But looking after spending often takes a back seat in the hustle and bustle of being in business.
The reasons are often complex but one of the big frustrations is that far too many people spend money on things they just don’t need.
So, this video walks through some of the things that you don’t need and offer you an alternative way of thinking about what you’re spending and why.
So, here are some key points on why you should monitor your spending properly.
And this applies particularly in the early days of a business.
Many cash-strapped start-ups will go and buy new office furniture when used furniture will do.
They’ll go and buy the latest technology when all they really need is something that will do the job for now.
Even worse is that many newbie business owners seem to think that having a fancy (and expensive) city-centre office will wow the customers (trust me, it won’t).
But it’s not just start-ups that fall fowl of this, many seasoned business owners fall into the trap of just spending without thinking too much about what’s really needed.
So, here’s a few pointers on looking after spending
- Think about whether you need new or can ‘get by’ with used (2nd hand) until cash-flow improves.
- Out-of-town offices tend to be much cheaper (and have better parking) so consider those. Or can you get by with an office-share space?
- Unless you run a tech company you don’t need the latest (and most expensive) tech
- Tools like fiverr.com can save you money on things like logos, graphic design and website design
Going to a local freelance designer is a lot cheaper than using a branding agency too.
- Charity furniture shops are often a great way to kit out an office for next to no money.
- You’re not obliged to have an accountant (in most countries) but I would recommend getting a book-keeper as soon as possible. Most book-keepers can also help you with tax returns etc too. Ask around for recommendations on this.
Hope this helps but it’d be great to have your thoughts on looking after spending in the comments below.
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