American entrepreneurs are in for a huge year. Nearly 4.5 million new business applications were filed in 2020, the highest number on record and up nearly 25% from the year before.
Whether you’re starting your own company or you’ve been your own boss for years, the fact doesn’t change: The money you bring in has to exceed what you spend. In other words, when you own a business or work for yourself, profit is king.
You can only keep your (figurative or literal) doors open if you’re in the black. We put together three smart ways to keep your finances in check, brought to you by our friends at LinkedIn.
1. Regularly review what you’re paying for
In business and in life, every little thing adds up. When you’ve amassed a mountain of services, it’s easy to forget some old programs you pay for but don’t use. Maybe you updated your financial software but forgot to cut off your old one from billing you each month.
Each quarter, go over your business expenses to make sure you’re only paying for what you need. If it takes a lot of time to collect all the receipts, that’s a sign that you should update your organizational strategy.
Nope, you don’t need to spend money to get a little more organized. Just open up a spreadsheet. Spreadsheets help you visualize everything you’re spending money on, and pick out any outliers.
You should also analyze everywhere your money is going. If you’re overspending on a service you no longer need, cut it off. Make sure you’re only paying for useful tools that serve your business.
2. It never hurts to ask
For all the services and recurring fees you keep, do a little digging. Think about how you can barter or at least get some money knocked off your monthly bills.
If you’re hesitant, don’t be. The squeaky wheel gets the grease, so send out an email asking if there are discounts or any ways you can cut your costs. You’d be surprised to see what you get if you just ask. Be kind and clear in your email.
The best way to get results is to reach out to a specific person, rather than a general email. When you send a message to someone’s personal email account, you’re more likely to get a response.
If you’re having trouble finding someone to reach out to, head to LinkedIn. Look up the company and search through the sea of faces. You may find a friendly person willing to help you out.
Speaking of LinkedIn, here’s another great way to cut down on costs.
3. Be creative with who you hire
If you’re looking for new employees, your mind might go to someone super seasoned with years of experience. What about someone without as much experience but lots of drive to do great work? That person’s salary won’t be nearly as high as someone who’s been in the business for decades.
When you’re looking for a new team member, don’t stick to the same old checklist. Keep your mind open. There are hardworking candidates out there with a wide range of experience, and you may find your next great hire just by being a bit more flexible with requirements.
First, though, you need to make sure potential team members can find your help wanted ad in the first place. Free job boards are tempting because, well, they’re free. But don’t expect a stack of resumes perfectly tailored to the position you’re hiring for.
Go with the gold standard. LinkedIn Jobs matches your open role with qualified candidates and puts your post in front of members every day so you can hire the right person faster. When you list a position, you get access to an easy-to-use dashboard where you can manage everything in one spot.
Find the perfect fit for your business with LinkedIn Jobs. And, for a limited time, post a job for free — just visit LinkedIn.com/kim to get started today.