How to Save Enough as a Small Business

When I started my education and computer consulting business, the first question was mainly about how to save enough money to support the business and my family.

For real, I was not the only one in this dilemma. We all had the same thought when we started.

And if you're just embarking on this journey of self-employment, you may want answers to the same question.

Luckily, you're on the right page to find the right answer. I'm probably not going to share conventional advice you've read about on the net. 

I'm a living example and I should be right to share exactly how I was able to save enough from a one-man business such that, in a decade, I was a proud owner of a house and two cars.

Before I share my tactics, saving enough money will help you majorly in two ways.

Enough Savings is the Best Measure of Your Cash Flow

Obviously, the first contributor to your business's growth is the provision of the best possible services or the sale of the best products available.

Savings should be the second on the list. This can be called cash flow. But, I will rather call it savings.

Save, save and save.

You don't have to be saving at the expense of providing the best services or products. Yet, take every chance to save a few bucks.

Bankers and Lenders may need your saving history to entrust their funds to you and your business.

Enough Savings Guard You Against Emergencies

The simple unknown secret is that whatever you're saving is not only to buy your next car or build your dream house, you will need money in the bank to save your business from unforeseen problems.

Your regular expenses are usual. Keeping money in the bank for that is also usual. Yet, there should be unusual savings for unusual circumstances.

Printers may break down beyond repair, power generating set may break down - calling for a total change or half-engine replacement.

You can be robbed of an important machine that will halt your operations and production. You need to set enough aside to tackle this family of spendings.

And if you're lucky to have things working well, you won't burn your savings when you have the red car you'd always wanted, still in the market.

In short, your first primary focus is savings for the business before your family and yourself.

Enough Savings Motivate You to Keep Going

Running a business comes at the expense of trying to beat every competitor in town. You can't possibly achieve that by leaving nothing in the bank.

Even at the expense of the advice on inflation, you still need to keep money in the bank.'

It won't only help finance emergencies and regular expenses, as already noted, it will also boost your morale to give more to the business.

There is a need to have the value in the bank that will keep giving you the energy to stand up every morning and prepare for work. Having money in the bank will give you a pat on the shoulder to work beyond the regular working hours.

Your motivation doesn't depend only on making your customers simile, you need to have enough savings to keep yourself smiling too.

Six Must-Dos to Save Enough Money With a Small Business

Below is a list of my approaches to save enough for the rainy days and motivate myself to do more after ten years in business. I bet you'll find them applicable too.

1. Survey Before Buying Stocks and Materials

This may sound like "everybody should do that, of course".

I've seen businesses, especially self-employed, that while starting out, fall into the trap of the first supplier, consultant, etc.

Giving in to the first supplier's prices can be a wrong business decision. There is a need to check two or more outlets when buying business items or materials to be used, stocked, or sold.

Once the quality is met and there won't be a delay in the supply period and probably nothing significant is compromised by your final choice, go for the cheapest prices possible.

Most suppliers give higher prices all in the name of their brands. There are suppliers/brands that will save you a few cents even though they are not popular.

When you're about to buy a printer, laptop, etc on Jumia, you're more likely to spend 5% less if you turn to Konga for a reasonable longer delivery period.

This is the same when shopping offline for office items, selling items, materials, etc.

In the long run, the accumulative savings may be worth it.

2. Do a Few Things Yourself

As a self-employed, you can paint your office yourself. You can decorate the environment without inviting a decorator. You can print a few flyers, handbills, or posters yourself without paying for a printer.

This you can do within a few hours by yourself with little or no money can save much in the long run.

While starting out, you may be tempted to think you have to pay for everything. If you look inwardly, the pre-launching and early days of your operations are not really too busy for you. You can try a few things by yourself if you must save a few dollars.

3. Don't Rush at Employing Others

There is no such thing as a full one-man business. The business that seems too self-running still needs a few people to run smoothly.

However, being a starter, it may be draining trying to engage a staff right after the launch. See if you can run things for a few months all by yourself.

In the first few months or years, you may not have that number of customers and orders that will necessitate employing new staff. Engaging one from day one will only take a deep in your revenue without significant contributions from such staff.

I'd made the same mistake, for a few months, before I realized I didn't need a staff while I had little doing with my personal time.

I employed a lady staff, who collected, though 5% of my monthly revenues. She worked for about two years before she got a better offer. She left Techie Konsult with the thought that I had to immediately get a replacement or suffer some customers and sales.

Trust me, I could single-handedly handle things for months without missing her or employing new staff. All it took was a few more hours of dedication than before. And most importantly, it saved me money.

4. Using Apprentices as Workers Saves More

This, though, may not be applicable to every small business. You should engage trainees as staff while they last.

I didn't realize how much I could save in terms of money and time until I lost my staff and started taking in people who wanted to learn my skills. 

Depending on the nature of your business, if the right one, you can accept to teach people how you do things. Except for the fear of training direct competitors, these sets of the staff collect nothing or just stipends. 

Accepting students for industrial training and SIWES can be the right channels to get free staff and save the potential salaries.

5. Avoid Illegal Operations that May Lead to Suits

Somebody, behind me, was being skeptical about my material achievements in just a few years. 

Around here, people can easily attribute your success, in my industry, to internet fraud. And that's what was in his mind, which he, of course, later spitted out.

When I got that news, I was quick to tell them that my success was because I didn't indulge in anything that could lead me to court. 

If you can avoid engaging in any illegal activities, you will save your money from being taken by the police and lawyers.

6. Avoid and Limit Damages and Repairs

This may also sound like common sense. But you're likely going to be stung by this if all you do is serve customers without paying special attention to the equipment you're using.

Do you know how much it costs to change your generator, replace a computer screen, change wires and cables?

Even with a critical repair, you will be forced to spend critical money.

In short, look out for all your dumb staff. They don't talk when they get weak and are about to break down. 

It's your duty to be vigilant. That underrated routine of retightening bolts, washing, cleaning up, or minor repair, may leave your money in savings.


Saving money is not only to keep money in the bank. Even though that's major and very popular, avoiding unnecessary spendings which can be achieved with little effort is another great way to save hundreds of dollars across the years.

Without enough savings, a little setback may force you to wave goodbye to the empire you'd worked hard to start and run.

Happy savings!

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