Do you find more money “runs out” of your bank account every month than is coming in? Do not fear. There are several simple steps you can take to better your finances – even in the economically challenged start-up phase. In this article, you’ll learn simple savings tips that will do wonders for your entrepreneurial budget.
1. Set a budget
You’ve probably heard this tip many times, but setting up a budget is really an alpha and omega to control your spending. By setting up a budget, you get a good overview of all expenses and earnings each month, as well as determine what expenses you can cut.
You should start with the accounts for the last two to three months. Then you get a more realistic overview of all expenses and revenue. However, make sure you give yourself a small financial leeway for unforeseen expenses.
2. Set up automatic transfers
Another way to get the job in the economy is to set up automatic transfers from your bank account to your savings account, and for your invoices to be paid automatically. While you previously received invoices exclusively on paper, you can now choose a more easy-to-use variant. Not only is the digital invoice easier to handle, but it is also considerably cheaper.
The traditional paper invoice comes with additional expenses from the companies that issue it, both in terms of materials and for environmental fees. Therefore, the paper invoice comes with an additional fee. By choosing electronic invoice, you will lose these expenses.
3. Select a loan with favorable terms
If you need extra funding during the start-up phase, you can save a lot on choosing the right loan for you. Even though the banks follow the general interest rate level on the market, it is up to each bank to set its interest rate based on its own risk assessments. Therefore, it pays off to compare and collect loan offers before submitting an application.
A useful tool in the pursuit of the best private loan is a loan calculator. This gives you an overview of all expenses related to the loan, broken down by interest, deductions, termination charges and total costs. With this, you can easily compare the different loan offers and find the cheapest loan with the lowest interest rate.
Another tip when finding the best loan on the market is to make use of a lender. A lender is collaborating with several banks. Thus, you only need to submit one application, and the financial agent will send the application to all of its collaborative banks that offer loans without collateral. Axo Finans is such a lender that offers private loans through several of Scandinavia’s best banks. By submitting an application, you will save you a lot of time, as well as being presented with the best offer tailored to your finances and living situation.
4. Obtain financial support
Being in the start of a project can be economically demanding. Firstly, there are a lot of new equipment that have to be in place. Additionally, the service or product has not received significant distribution on the market. Fortunately, there are many organizations, banks and investors looking for new exciting projects to invest their money in.
Investigate the market and see if there are no people out there who are interested in your particular project.
5. Use your contact network
As recently established on the market, your biggest resource is your network. Before you have made a customer list, you rely on getting your name published in public. And to get to know you, you must spread your name wherever you can. But the network is not only a resource when it comes to word of mouth, it can also hide “financial help” among your acquaintances. Maybe you know someone you can share a friendship with? If a service swap is not applicable, you may still get a better price for your work. Everything helps.
Did you find any good budget tips? Often, there is not much to do to reduce monthly costs. As an entrepreneur, you have to be creative.
Good luck!