Posted: 27. October 2019 by: Rupert Tennant

How to Save Money in the Long Run

A business needs to save money as soon as it’s able to since that’s the best way to prepare for the future and to have a hedge in case something happens or doesn’t go as you’ve planned to. This requires you to have a steady stream of income and to be disciplined with your money.

The second part is often harder than the first since there’s always something you could spend your money on as a small business owner, and putting it aside isn’t easy.

Diversifying income streams

The first step towards making sure you have money put aside. That’s best done by making sure that you have enough income coming from different streams. It’s possible to then use one of your income streams to cover the day to day expenses and another to save up.

At the same time, it’s important to put money aside for different purposes as well and not just in a general pile for the overall future needs. All of this requires discipline and the ability to delay certain purchases that you might need or want right now in order to save for the future.

Do it automatically

A lot of the times, the temptation of having money on your account can be too great in itself. There are ways to fix that simply by using technology you have at your disposal. For instance, apps and online bank, the software can allow you to transfer a portion of the funds automatically when it’s paid on to your account.

When it’s done every time or every month, it starts to accumulate, and it can even feel like it if it’s happening without your involvement when you set it up the first time.

Use the tax code

The tax code in itself can be a way to save money. That’s partly done by making sure that you pay your dues on time because when you do, you get to be treated favourably by HMRC and there are no additional fees and penalties that come with being late.

Additional HMRC helps small businesses in numerous ways, and that’s mostly done via tax cuts and tax breaks that your accountant should be familiar with. It’s a worthy expense to pay the accountant to help you out with finding these tax loopholes.

Invest don’t save

One of the ways to get the most out of your savings is to move the money from saving to investing right away. This is a less safe way to go, but it can also be a better one since it means that the money you put aside won’t be jeopardized by the inflation.

It’s best since these will be small investments, to use some sort of safe channel with low rates but one that will be rather risk-averse and thus remain a part of your portfolio for a while. For the most part, it’s best to use government bonds.

Do it yourself attitude.

There are many tasks that you can do yourself as a business owner and thus don’t overspend on your employees and their salaries. Most business owners feel this way about not having an accountant early on since there are many tools online that can help you do that job on your own.

However, it’s best not to go overboard on this, and there are some jobs that are better left to professionals and that you may even ruin and cause harm when doing it without proper expertise. It’s best to at least consult an expert before embarking on such a project.

Divide your expenses

It’s useful to divide your expenses into groups based on how important they are. That way you’ll have a clear line as to where to cut. The first line of expenses should be the ones you’re legally required to pay; the second should be the ones that your business can’t live without, and the then there are all the rest.

When you have this principle established, you get to save your company when it’s facing bankruptcy, but you also know from where the money you want to put aside can be saved.


A company needs to start saving money as soon as it can. That way, it can prepare for the expenses that might come up and plan for the ways to improve the business and its profitability over time. The key to saving is to have a good grasp of the money coming into your company and to be disciplined with how you spend it or when you save it.

There are also ways to use technology to make the process easier and to remove yourself from the decision process as to whether to keep the money or to spend it.