The development of collaboration tools and other tech solutions has dramatically changed the labor market.
Now, employers and employees don’t need to the office to carry out their work tasks.
Instead, they can work from home or any other remote location.
However, if you’re a new business owner working remotely, it’s challenging to make a successful financial start.
In this article, we’ll share some frugal tips that will help such entrepreneurs ensure financial stability.
1) Set up a dedicated workspace
If you want to make your business work, maintaining a steady income is the vital thing.
Staying productive and focused during the entire workday is the key to ensuring quality.
In line with that, you need to set up a dedicated workspace, no matter whether you live in a house or apartment. At this stage, it’s better to avoid paying any unnecessary costs, such as renting an office or paying for a coworking space.
If you don’t can’t turn a part of your living space into an office, talk to your friends and relatives. Those living in houses might have a spare room or garage that you could use for work.
Separating your business life and office from your personal life and working space will help you stay efficient and keep the business and private matters apart, as well.
2) Consider sharing costs
Some new entrepreneurs establish cost-sharing partnerships when they’re starting their ventures.
Here are some suggestions of expenses you could share with your fellow entrepreneurs:
- Internet costs. Consider contacting other similar businesses in your town or neighborhood to share the Internet costs. Some providers offer special business bundles that several ventures can use.
- Inventory and equipment. Depending on the niche you’re in, you might be able to lease or buy inventory or equipment with another business and save money that way.
- Rent. If you decide to leave your home workspace for a full-scale office, consider sharing the rent with one or more business owners.
- Taxes and fees. Join a guild or association of businesses operating in your industries. You might enjoy different benefits, such as discounts on items necessary for your work operations. Also, they’ll teach you how to handle taxes and state-induced fees.
3) Master tax deductions
Speaking of taxes, new business owners should know that they have the right to require tax deductions.
In the US, there are dozens of tax deductions for small businesses.
Basically, you’re entitled to a deduction to every bill and tax you pay for business purposes. For instance, if you’ve had lunch with a new business partner, the lunch bill is eligible for a tax deduction.
Plane/train/bus tickets and gas bills are also deductible, given that they’re paid for business operations.
Likewise, business equipment, such as computers, special machines, and even company cars qualify for tax deductions.
Finally, in some areas, home-based business owners can get deductions on the money they’ve invested in creating a dedicated workspace within their home.
The more you learn about tax deductions, the more money you’ll get back. Consequently, you’ll have more assets to invest and keep building your business.
4) Make accurate estimates
Being a home-based business owner means that you don’t always depend only on your organizational skills.
There might be a power or Internet outage and you can’t finish a task on time. Sometimes family matters interfere with our business operations, no matter how hard we try to keep them apart.
That’s why it’s important to provide clients with accurate estimates. Even more importantly, give yourself a few days more than you actually need to complete a business project or task. That way, you’ll have a safety cushion if anything goes wrong during the project.
On the one hand, you’ll avoid the stress and fear of being late with projects. As a result, you’ll build a positive reputation as a trustworthy and punctual professional. Also, you’ll avoid paying penalties for breaking deadlines.
On the other hand, your clients will be able to complete their operations on time.
Additional two cents: whenever possible, divide your projects into milestones. Such arrangements will keep pushing you forward to finish your tasks on time. What’s more, you’ll get paid faster.
5) Use free marketing hacks
Performing business tasks professionally and accurately is not enough for new business owners to reach success.
You need to use different marketing tactics to improve their online status and expose themselves to potential clients.
Social media are the first stop on this marketing path. Facebook is the most popular network in the world, with several billion users. It’s clever to start with business promotion on this network. If it doesn’t generate enough leads, see how Instagram and Twitter work for your business.
LinkedIn is another important social network for businesses to build connections and spread the word about their activities.
Also, pay attention to your website. As the design experts from a Houston web design company claim, a business site that converts doesn’t need to shine, but it has to accurately inform its visitors. Therefore, keep the website content relevant and its sections simple. The clearer it is, the more likely it is to bring new leads at lower investments.
Being a home-based business owner is no cakewalk under the current circumstances. While there are many opportunities to grow such a business, the beginning is not easy.
It’s important to control the expenditure as much as possible in the early stage to be able to make all the necessary investments afterward.
The tips shared in this article will help new SMB-owners working remotely gradually develop their ventures without spending a fortune on the growth.