5 Money-Savvy Tips for Entrepreneurs With Growing Businesses

Entrepreneurship is a big business in the US. According to the Global Entrepreneurship Monitor, the country has over 31 million entrepreneurs, making up 16% of the adult workforce. About 55% of American adults have launched a business at some point, and 26% have started two or more ventures. Those are inspiring numbers, right?

Before joining the bandwagon, you must look at the other side of the picture. Launching a new business is challenging, specifically when it comes to the financial aspects. The latest surveys show that 20% of new ventures fail to reach past the first two years. Financial issues and cash flow problems are the reasons for 16% of startup failures.

Fortunately, entrepreneurs can overcome the risk by being money-savvy. What does it take to successfully run a new venture on a tight budget without cutting corners? Expect it to be a tightrope walk because it requires strategic thinking, patience, and frugality. 

Let us share a few tips for leading your growing business without losing financial control.

Start With a Realistic Budget and Stick With It

According to the U.S. Small Business Administration statistics, entrepreneurs can launch microbusinesses with an average initial investment of $3,000. Most home-based franchises cost only around $2,000 to $5,000. It means you can start small, but you must have a realistic budget in mind.

Everything boils down to having a business plan, as it defines the things you need to launch and prevents you from making impulsive spending decisions. A startup budget should detail initial investments, predict recurring costs, and forecast revenues. Besides creating a detailed budget, you must commit to sticking with it. 

Outsource as Much as You Can

As an enthusiastic entrepreneur, you may want to dive headfirst with a big team running your business. But hiring, training, and retaining people can burn a hole in your wallet. The best option is to outsource as much as you can, specifically when it comes to non-core operations. According to Blue Valley Marketing, outsourcing contact center services is a good start.

You can save money and reduce significant workload by collaborating with a provider to handle outbound lead generation and inbound customer service. These processes keep your sales pipeline healthy and ensure high levels of customer satisfaction. A contact center partner can help you stay on top with omnichannel reach and high-value leads.

You can also outsource IT support, software development, accounting, human resource management, and digital marketing expertise. Did you know that 59% of organizations outsource to cut costs? Being one of them can be a cost-effective decision.

Utilize Free Tools 

Nothing helps you save more than utilizing free tools to run your business. That sounds far-fetched, but you may find countless options to address collaboration and productivity problems with free tools and apps. You may also use freemium ones that start with free versions and let you upgrade to paid ones later.

All you need to do is dig deep and find the ones matching your startup needs. Google Drive is a valuable yet free cloud-based service that facilitates file sharing and collaborative editing. Accounting software like FreshBooks and QuickBooks can help you save big on accounting and simplify repetitive tasks such as tracking expenses and sending out invoices.

Track Your Transactions

Being a money-savvy entrepreneur is also about keeping a close watch on every dollar you spend and earn. Monitoring your spending and income enables you to understand whether you are reaching your financial goals. It also helps you organize and maintain records for tax purposes and stay on the right side of tax deadlines and rules.  

Create a formal accounting process for managing data, storing receipts, and updating profit and loss statements. With your transactions organized, you can pick mistakes and compliance issues that may land you in trouble later. You can also identify potential money-saving opportunities. 

Look for Strategic Partnerships 

Strategic partnerships can also empower your startup with long-term money savings. For example, the right suppliers can give you lucrative deals and easy payment terms. You can rely on them for high-quality materials, on-time delivery, and help with product development.

Investing in customer partnerships also helps startups struggling with cash flow issues initially. Stick with a loyal customer base and offer them deals like discounted pricing and special packaging. In exchange, seek timely payments and long-term commitments to keep your cash flow in place. 

A Final Word

A money-savvy approach sets you up for entrepreneurial success even in the most challenging landscape. The best part is that you don’t need to be a financial genius to save dollars for your startup. Following these practical money tips is enough to start on the right foot and build from there.