Making a profit is the most important part of having a successful business, but having a savings plan is a very close second. Although business savings are very different from personal savings, it is equally important to set savings goals. When it comes to personal savings, it is smart to take your income and split it into three parts: Wants, Savings, Needs. The standard model for this is: 50% for needs, 30% for wants and 20% for savings. However, this can be adjusted based on your income or other factors that better suit your lifestyle and financial goals. When it comes to business savings, it is essential to set a goal of how much you want to save and where you want to allocate the money. Whether you choose to reinvest into the business for things like research and development and production or hold the money in a savings account for a rainy day, it all requires the responsibility of saving.
Here are a few more useful business tips:
-The 80/20 rule / Pareto Principle, which states that “roughly 80% of the effects come from 20% of the causes”.
-Keep track of all transactions with automated data entry. Data entry can be very expensive and boring but automated data entry makes everyone's life easier and you can save a quick buck!
-Cut traditional advertising costs. Advertising is most often a business’s biggest expense. With the power of social media, advertising can be done with speed and convenience from your smartphone. You can use popular apps like Instagram and TikTok to your advantage to promote your business. This is a low-cost alternative to traditional advertising mediums like commercials, billboards, and paper ads. Saving can be a stressful endeavor, but with these tips, you won't just save a bunch of money, but a bunch of time as well!