A great deal of responsibility rests on the shoulders of the small business owner. With finite resources, and with expenses ranging from tax bills to health insurance, the small business owner needs to try every trick in the book to maintain positive cash flow.
No matter what your finances are like, it’s always important to be careful about every dollar you spend. Gary Brewster, Oneida, Tennessee businessman with over 25 years of experience explains below 6 essential areas where a business owner can save money and ensure their company stays in the black.
1. Save money on health insurance
When you’re self-employed, your health insurance premium is one of your most significant expenses. Fortunately, there are ways to save on this business cost. One of the most significant areas of saving comes from your ability to deduct your premiums on your tax returns. There are a few caveats to keep in mind, however, before you attempt to write off a premium:
- Your business must be profitable. You cannot deduct expenses in amounts greater than your profit.
- You cannot put together earnings from other companies that belong to you, in an attempt to appear profitable.
- You cannot deduct premiums for insurance obtained from sources such as your spouse.
2. Set aside dedicated home office space
If you often work from home, you can set aside an area that exclusively serves as your home office. When you do this, you will get to deduct a portion of your mortgage and utilities bills on your taxes, in proportion to the space that you use. Whether your home office qualifies for such a deduction, is a complicated question. Checking with an accountant is important.
3. Get all your office equipment used
Small businesses and home businesses can spend a great deal of their budget on equipping their offices, however, it doesn’t have to be this way. It’s easy to get quality, used equipment at various websites at half-price. Desk chairs, shelves, and even sofas can be obtained at discounted prices if you’re willing to go the used route. In the end, you will have saved money, and you’ll find that you have more furniture then you would otherwise have.
4. See if you can barter for services
As a small business owner, you possess several valuable skills that even other professionals may benefit from or need. You could easily trade your skills in return for services that other people can offer you. If you are a marketing expert, for instance, you could barter for professional services such as web design or tax consultation.
5. Use free software wherever possible
While buying the software that you need is the easiest thing to do, there are great options available if you are trying to save. In fact, there is plenty of free software available out there if you’re willing to do some online research. For instance, products like Open Office offer everything from free spreadsheets to word processor software. It’s a terrific and easy way to save money.
Naturally, saving money is always important for the small business just starting up, especially since funds tend to be limited in the beginning, and expense quickly pile up. However, when you learn to pay attention to every little cost, and strategically manage your finances, you’ll have an easier time paying those bills and saving for the future.
About Gary Brewster: A pioneer in the roofing space, Gary Brewster of Oneida, TN is a seasoned business owner and commercial roofing expert. He started his career in roofing over 25 years ago, before moving on to invest in other successful businesses such as Brewco LLC., and T&T Car Wash. Driven by a mission to serve others, Gary is best known for serving on the Board of the nonprofit Operation Sharing.
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