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Another Dollar: How to Save Money While Growing Your Business

ANOTHER DOLLAR: HOW TO SAVE MONEY WHILE GROWING YOUR BUSINESS
 January 18, 2022 |  Business Tips, Franchise |  entrepreneur, inspection industry, small business, business growth, money management

By David Stamper, NPI, Inc.'s President & CFO

Correctly managing your finances is necessary to be a successful business owner, yet it isn’t always the easiest thing to do. Close to 80 percent of entrepreneurs fail due to poor money management. If you’ve never owned your own business before, you might have a million questions about how much to save and what’s the best use of your money. Luckily, you can get things sorted out with a few tips.

Common signs you have a money problem.
Figuring out that you’ve got a problem with your accounting will help you know the right steps to take. You’ll know right away when you run into a cash flow issue. If you’re struggling to pay for your expenses and finding that you’re dipping into your savings, you're probably hemorrhaging cash faster than is sustainable. When you first start out, you might not turn a major profit as you get set up. But the important thing is to not let yourself get behind in accounting for every dollar that comes in and goes out.

Don’t try to outrun your spending.
At first, the simple solution to not having enough money coming in is trying anything to increase your revenue. This isn’t a great strategy for long-term success, however. You should instead look at what you’re spending your money on. See what your biggest bills are and organize them by dollar amount. (It can help to use a program like Microsoft Excel to track your expenses easily). Once you have all your expenses in front of you, it’ll also be easier to find those unnecessary things you’re spending on. For instance, maybe you signed up for a free trial months ago that rolled over into a paid subscription. Sorting out these one-offs will make your budget clearer and get you started saving!

Plan for the spending you haven’t done.
Nobody can accurately predict the future, but you can make yourself better prepared for it. Using your budget, figure out what your fixed expenses are. These are those costs that don’t vary much month to month. Adding them together will let you know how much you have to spend monthly. Then factor in other expenses that you typically spend on that might not always be the same. Things like gas, credit card fees, and other costs are some of the most common. When you have your monthly overhead tallied up, you’ll see how much is left over for savings and unexpected costs.

Keep up with your money management habits.
The best thing you can do for your business is not let your budgeting fall behind. Stay on top of tracking all the dollars that flow through your business to be a more effective entrepreneur. Look over your monthly budget and see if you stuck to it or maybe veered off course a bit. If you do get off track, don’t worry! Just get back to following your plan and get your money back in line. Then when it comes to the end of the year, you’ll get the full picture of your spending habits. Just one change to your business can make all the difference!

 

About the Author
David Stamper, President & CFO
NPI Inc.'s President and Chief Financial Officer David Stamper holds a B.S. in Accounting and Mathematics from Buena Vista University and currently manages day-to-day business activities, performs the company’s accounting functions, coordinates software development and assists with long-term planning. In addition to his management duties, David also helps train and mentor new franchisees and provides business management support for current franchise owners.


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