How to Run a Frugal Business

When you’re running your own small businesses, finding a steady flow of clients is essential.  However, just as essential is learning how to run a frugal business so you’re spending less of your hard-earned money.  If you’re a frugal business owner, you’ll be able to build a financial cushion for times when work ebbs, as it inevitably does, or when a client doesn’t pay promptly, as clients inevitably do.

Running a frugal business isn’t as difficult as it sounds.  Consider these strategies:

Barter

Do you need some work done on your website?  Rather than pay for it, see if the person you would like to hire would consider bartering with you.  In return for website work, maybe you could write a certain number of articles for the person.  Then you can both get what you need without spending a penny.

Not everyone will agree to barter, but when they do, this is a nice way to save money.

Maintain Your Home Office as Long as Possible

As long as possible, try to maintain a home office rather than moving your office outside the home.  A home office is free, and if you have a designated room for it, it can be a tax write off. 

If you’ve reached a point where you really need to move your office outside the home, consider first sharing a space with others in your situation.  Then, you will be sharing the cost of the office space rather than paying it all yourself.  Some shared office spaces even have a secretary that all members of the office share and pay for.

Learn for Free

While there are many books and courses available to learn more as a business owner and grow your business, make sure you use free resources first.  You can find free books through Kindle or free how-to posts for many of the things you need to learn.  YouTube is also invaluable.  Scour the Internet first before you pay for any course or book.

Outsource

If you’re business continues to grow month after month and you need help, don’t automatically rush to hire a staffer for your business.  Instead, first consider hiring freelancers such as virtual assistants and writers, etc.  You won’t be responsible for paying their insurance and other benefits.  If work ebbs, you can reduce their hours.

Use Free Websites and Apps

Likewise, try to utilize free websites and apps.  Paypal is a free way to send your money to freelancers and others you work with, and you can receive money on Paypal for a nominal fee.  Asana is a great free tool for managing your projects and the work you have your freelancers doing.

 

Paying for websites and apps you utilize is fine, but make sure to first search for free options.

While many business owners focusing on growing their business and earning more money, make sure you also look at the other side and consider ways to save money.  This is equally as important as earning money but tends to get less attention.

What is your favorite strategy to run a frugal business?