Entrepreneurs, Make Money By Cutting Costs

The great entrepreneurs of the past have such a big influence on entrepreneurs of today, and why wouldn’t they? The likes of Rockefeller, Gates and Jobs all spotted a gap in the market and built billion dollar industries from the ground. For the most part, that is every entrepreneur’s dream. Although the great names of the past breed confidence in the new generation, they also set a bad precedent. Okay, they don’t directly come out and say ‘you have to spend money to make money’, but that is what most businesspersons glean for their legacy.

I might not be a world class entrepreneur, but I do know that spending money to make money isn’t the only way to get ahead in the industry. Here are a few ways you can make a fortune by cutting costs.

Make A Budget

Making a budget it the most important decision you can make because you can understand your money better. Before you splash any of your cash, you need to know what you can afford to spend. How does that expenditure affect my bank balance? Can I afford to spend that sort of cash? These are questions any entrepreneur needs to ask before pulling the trigger. It is an unfortunate and inevitable part of an entrepreneur’s life that some business dealings will fail. When they do, you need some form of finance to fall back on.

Haggle

Don’t let people see how much you want a product because the price will rise. Business is all about supply and demand, and soon as a seller sees the demand is outstripping supply, they can charge as much as they please. Play it cool and make an initial offer that tests the water. Use their reaction to gauge how much they are willing to take. Everyone has a price backup price when they will sell. As an entrepreneur, it is your job to locate it and trigger the clause.

Use An Accountant

Accountants are professionals and know the law inside and out. As an entrepreneur, they are vital to your success. Accounting services will save you a boatload of cash because they know how to spend and where to cut to maximise your earnings. For example, they could, legally, cut your tax contributions, so you pay less tax a year. Or, they could hold back expenditures until the last minute, so you have as much money as possible in reserve to pay other bills. Their expertise and all round service are second to none.

Shop Around

One investment might look like a diamond in the rough, but how do you know? After all, you have nothing else to compare it against. Entrepreneurs have a tendency to make rash decisions without thinking about the consequences. Yes, you might pull off a masterstroke, but the odds suggest you will end up throwing money down the drain. Look around the market for similar investments that are cheaper.

Get In On The Ground Floor

If you can find the best deal possible, get in on the ground floor before everyone else. That way, when the price begins to rise, you can reap the benefits without paying extortionate amounts to invest.

img: https://www.flickr.com/photos/76657755@N04/7658159678