As a self-employed business owner, there are a number of important things you need to think about on a daily basis. You need to be constantly evaluating your market, looking for ways to improve your products and services, and delighting your audience. However, the most important thing you’ll need to consider overall, is how to manage your cashflow. The smaller your business is, the more limited your budget is going to be – particularly when you’re in the early stages of growth, and you’re still searching for long-term clients. Fortunately, there are some simple tips you can use to reduce your stress and keep costs low.
Pay Yourself Only What You Need
Many people assume owning their own business means they can pay themselves as much as they like. While this is true to some extent, it’s worth remembering you won’t always be able to predict exactly what you’re going to earn each month. Deciding exactly how much you need to pay yourself to manage the costs of your bills on a monthly basis will help you to save extra cash for your emergency budget, and to re-invest into the business. You can even reduce the amount you need to pay yourself, by reducing your monthly personal costs. Refinancing your existing student loans into a new loan is a great way to lower the amount you spend on re-paying interest throughout the year.
Embrace Contractors and Remote Work
For a while, you may be able to manage the majority of your business needs on your own, without hiring anyone. However, there’s a good chance you will eventually need to get some extra help. When this happens, it’s worth looking at contractors and remote work instead of full-time internal employees. Contractors can work from anywhere in the world, so you don’t need to pay for an official office or business location. With this strategy, you can also hire exactly who you need when you need them, without committing to any long-term contracts if your needs change.
Work on Partner Relationships
Creating better relationships with partners and vendors can be a good way to reduce the amount you spend on essential services. You may need to regularly interact with the people you partner with on a consistent basis and offer them benefits in exchange for discounts (like free access to your software, or free products). Keep in mind, while good partner relationships can ensure you save some money on your contracts initially, that doesn’t mean you should stick with the same vendors forever. Comparing your options and checking out other vendors can save you money too. As you work towards major life accomplishments as they pertain to your business, don’t ever forget your bottom line and ultimate goal.
Be Creative with Marketing
Finally, while you need to promote your business to bring new customers your way, that doesn’t necessarily mean investing in complex advertising strategies. There are also plenty of more affordable ways you can get your name out there. You could submit press release announcements to local publications, invest in blog writing to build your presence on the search engines, and get active on social media. Encouraging your customers to share information about your brand, and review your company online is an excellent way to generate new opportunities through word-of-mouth too.