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Running a small business is tough, and running a home-based business is tougher still.
Even with the most exciting concept or unique product, generating enough profit to move into an office outside your home can prove tricky.
Don’t panic, though. This is to be expected. As a matter of fact, 69% of US entrepreneurs start their businesses at home. What’s more, 59% of them choose to continue working at home even after the business has graduated the start-up phase.
Maybe that’s because running your business from home provides multiple opportunities to save on costs. It ensures that as much investment as possible goes into making your business viable.
To maximize your savings, insolvency experts Hudson Weir have created some top tips for saving money in your home-based business.
Stay on Top of Expenses and Taxes for Your Home-Based Business
Depending on where you’re based, different laws and regulations may apply. However, there’s almost certainly money to be saved in your home-based business through expense claims and tax relief.
Remember, when making business transactions you should keep receipts or other proofs of purchase. Office supplies and equipment shouldn’t be coming out of your pocket, but out of your business’s.
It’s also worth considering your phone and broadband service. For both, a proportion of the cost can be claimed based on business use if you’re working from home.
Every device you own is at risk of cyber-attack these days.
Therefore, good cyber-security habits can save you time, money, and lost data. You also eliminate the possibility of damaging customer relations by inadvertently passing along a virus to your customers.
Don’t Use Outdated Technology
For example, landlines are becoming obsolete with the proliferation of mobile phones and super-fast broadband. Also, a lot of businesses now use Skype. So try to do as much as you can over the Internet to save on mobile and house phone bills.
Leverage the Cloud in Your Home-Based Business
You don’t need to buy expensive office software and servers when you can switch to a cloud vendor at a fraction of the cost. Google’s G-Suite is a good example.
Save Money and the Environment
In the US, most energy companies offer free home energy audits. With the amount of time you’re going to be spending in your home, take advantage of this to conserve energy and save on your power bill.
If you’re feeling a little chilly at home, why not put on an extra layer or two of clothing instead of turning up the heating?
Electricity is expensive, so make sure gadgets are not left on standby for long periods.
Can You Go Paper-Free?
Printers, ink, and paper costs can also become prohibitive if you’re printing regularly. So go paperless as much as possible, only printing when absolutely essential.
Likewise, if you’re using your car for business travel, combine trips to save money and the environment. Though it might feel like an insignificant saving, over time you’ll find you have more disposable income.
Be Frugal, Not Frivolous
It might be tempting to spend money on your new office. But is it necessary?
Many home-based businesses don’t require you to arrange meetings, so why splash the cash? Instead, buy used office equipment and furniture wherever possible.
Gumtree, eBay, and others are your friends. They can help you to furnish your business on a budget.
When working from home you can also save a lot by being frugal around your day-to-day spending.
For example, coffee addicts can enjoy the benefit of brewing an entire pot while working from home. This allows for significant savings when compared to daily Starbucks runs.
Similarly, why not try saving money by cooking your lunches at home rather than going out?
It’s likely to be healthier, for one thing. For another, cooking at home for even one extra meal per week means that your wallet will thank you by nearly $1,000.
RELATED ARTICLE: TIPS FOR CREATING A SUSTAINABLE HOME BUSINESS ENVIRONMENT
Save Money in Your Home-Based Business
There are always savings to be made in a home-based business. Often it’s about getting creative and thinking outside of the box.
By making conscious decisions to save money in your home-based business, you might even find you reach useful financial solutions that apply to your business.
For more useful information on running a home-based business, take a look at our dedicated home-business blog.