For budding entrepreneurs, finances are always going to be a major issue. Whether you’re bootstrapping a startup or you have investors for your brilliant new business plan, managing your cash flow is going to be vital.
While many financial guides for entrepreneurs are based around cutting business costs, living expenses are just as important. Your new business venture has to be able to cover the costs of your living expenses as well as continue to be funneled back into the company.
If you’re bootstrapping or preparing for a launch, here are some of the best ways to keep your living expenses down while focusing on your business.
Transport Savings
Cars cost a lot of money, but they are usually considered a vital part of the entrepreneur’s toolkit. That’s because there’s a good chance that you will have to be mobile to meet with clients and investors, especially in the early days. However, you can cut the costs of running a car, and you could even get rid of it entirely:
- Use public transport: Cheaper than paying for gas, insurance, and maintenance, if you have a good public transport system in your area then use it.
- Carpool: If you don’t want to get rid of your car, then carpooling is a good way of sharing out the costs of the daily commute.
- Look after your car: Simple things like making sure that your tires are fully inflated can cut the costs of gas by a noticeable amount.
Don’t forget that if money is tight during the launch of your startup then selling your car and relying on public transport or carpooling is a good way of giving yourself a financial boost.
Energy Bills
This is one of the main living expenses that we pay for, so you should focus on cutting down the overall costs. This is easier than ever, and can be done by making some simple changes to your home:
- Change bulbs: LED or CFL bulbs are around four times more cost-efficient than standard bulbs. Start by changing the bulbs in the rooms that you most use at night, and your bills will noticeably drop.
- Unplug: Leaving electrical items on stand-by is a great way to waste money. Make sure that everything is switched off at night and unplug them so that you don’t get any phantom charges.
- Lower water temperature: This is a massive drain on your home energy, and can play a big part in your annual energy costs. Make sure that you drop your temperatures down on your water heating system, and invest in a water heater blanket as this will pay for itself very quickly in savings.
Move Home
Your home might be your sanctuary, but if it’s costing too much money to run then you could be hindering your business potential. When money is tight, moving to a more realistic property is always a good idea. Consider:
- Somewhere smaller: Smaller properties will tend to charge less rent. Move somewhere smaller, and if you have lots of possessions that don’t fit into your smaller home then make use of The Lock Up Self Storage Units that are convenient, secure, and cheaper than paying rent for a large property that you don’t need.
- Changing area: House insurance costs are directly tied to the area, and you might find a cheaper policy by moving somewhere else.
When you’re looking for ways to make your business budget spread further, cutting back on living expenses is a great way to boost your capital. Look at your budget and compare your outgoings every month. The more control you take over your living costs, the easier it will be to carry on building your brand into the corporate behemoth you dream of.
