Solopreneurship is about as small as a small business gets. As a solopreneur, you don’t just run an entire business, you are the business. This means you are the CEO, accountant, manager, marketer, and what have you. Or, simply put, you wear all the hats.
Sounds scaringly good, right?
The probability of success, however, won’t sound very promising. You see, small businesses have a tendency to fail. For instance, of all small businesses started in 2014:
- 80 percent made it to the second year (2015);
- 70 percent made it to the third year (2016);
- 62 percent made it to the fourth year (2017);
- 56 percent made it to the fifth year (2018).
What’s more, 82 percent of businesses that fail do so because of cash flow problems. Being the smallest possible business, you are extremely vulnerable to cash flow issues. While you focus on bagging more and more clients to keep the work (and money) rolling in, it is equally important to slash unnecessary spendings to maintain and increase profitability.
Ways to Cut Costs in a Small Business
So, here are four fundamental ways to cut costs in a small business including tips to reduce expenses, maximize your budget, and ultimately grow your solo venture.
Use Free Alternatives to Paid Tools
Online tools and apps are at the heart of your solo business. From sourcing clients to getting paid, everything you do involves the use of modern online tools. And for every task, there are countless options available on the market today. Setting up your suite of business tools thriftily can go a long way in maximizing your revenue.
Make sure to take advantage of the cost savings many free (or almost free) tools offer while providing the same capabilities and features as their paid counterparts. Here’s a tried-and-true toolkit for you to take inspiration from:
- Google Drive: For creating, easily sharing, and safely storing documents, spreadsheets, presentations, etc. It is completely free.
- Trello: Free web app for efficiently managing your projects the Kanban way.
- Slack: A great app for real-time messaging and file sharing.
- Canva: The start-to-finish, beginner-friendly, and free design app for all your social media graphics needs.
- Wave: Free software for all your accounting and invoicing needs.
- Unsplash: The best free collection of stock photos.
- Join.me: An ideal free tool for remote client meetings and screen sharing.
- BuzzSumo: The ultimate tool to source ideas for your content and social media strategy.
- Grammarly: A must-have freemium tool to detect and dodge grammatical mistakes in your emails and content.
- Clockify: Time is money. Track your productivity for free with this neat little app.
- Hunter.io: Find email addresses for pitching prospective clients with this freemium tool.
Reassess Your Work Location
The freedom to work from anywhere and be your own boss is the biggest reason why working professionals nowadays are ditching their conventional jobs and opting to become a solopreneur.
Chances are you have similar reasons, too. If you haven’t already, consider moving away from expensive city life to not only cut costs but to also experience the thrill of traveling and exploring new places. You can quite literally save hundreds (or even …read more
Read more here:: SmallBusinessTrends