However, many business owners often overlook the importance of controlling their personal burn rates. However, this is just as important, especially if you choose not to take a salary off the company in order to better manage cash flow.
If you’re still not convinced, here’s why and how to start pinching a little in person.
Many entrepreneurs run out of money while trying to get their businesses off the ground, forcing them to take a second job or look for alternative funding options. According to the Harvard Business Review, most entrepreneurs who quit a white-collar job to start their business return to a 9-to-5 score, with more than half doing so in less than two years.
If you spend a lot of money on expensive luxuries in the embryonic stages of your business, you will find that you cannot sustain this lifestyle for long and you will be forced to choose between quitting and going back to a “normal” job .
By being more frugal and making some compromises now, you can avoid having to give up everything you want later.
Now that you understand the importance of taking care of your own finances, let’s see how you can save a little.
If you spend day and night slaving over your laptop to get your business going, you probably don’t have much time to watch TV. In this case, you don’t have to look for an expensive satellite or cable package.
Of course, there will be times when you want to relax and catch up on your favorite shows or relax in front of a good movie. In this case, a much cheaper streaming subscription is a better option.
Amazon Prime Video, Netflix, and Disney + all cost a fraction of what you pay for a traditional TV package, giving you the freedom to watch on-demand instead of having to cling to the whims of the almighty planners.
There are even free and niche streaming services for those who have specific interests or don’t want to spend anything at all. For example, Broadway HD is great for enjoying the best musicals and plays, past and present, while PokerStars TV has hours of live coverage of tournaments, interviews with professional players and specially curated poker content.
When you’re pulling an all-nighter to meet an important deadline, the last thing you want to do is cook. But while copious amounts of caffeinated energy drinks and black coffee can help combat your body’s need to sleep, it’s harder to ignore the hunger pangs that cry out for food.
The easiest thing to do is to place the order at your local restaurant and have it delivered. However, this can get very expensive, especially if you do it on a regular basis.
Batch cooking is a better solution. To do this, you need to cook and portion a large amount of something so that you get homemade ready-made meals that you can quickly destroy in the microwave.
Not only will this help you save a lot of money, but it will also help you eat healthier food because you can control what’s in it. Regardless of what cuisine you enjoy eating, there are tons of batch cooking recipes online.
Being frugal can help you spend less, but it doesn’t mean you can avoid buying anything at all. For the things you need to buy, using coupons and other promotional discounts is a great way to keep making your money.
You can find coupons online, in your local newspapers and through dedicated smartphone apps. You will be surprised how common they are and how much money they can help you save.
With a little effort, you can cut the cost of your groceries, buy electronics for less, and get the suit you need for your investor meeting without breaking the bank.