Running your own business has many benefits. It allows you to work on your own terms without having a manager or boss dictating to you. However, it also has drawbacks. As a tradesman, working on your own can result in neglect of your personal life and time.
Managing all aspects of the business is rewarding yet demanding. Often, crucial aspects can be neglected. The most common areas often end up being administration and finances, particularly expense management. These oversights can easily put you out of business.
How to manage expenses
Now that you have a clear idea of what the typical costs are, it will be easier to keep track and cut down where you can to keep your expenses to a minimum. Here are some easy-to-follow tips to help you manage your expenses:
• Keep track of all your expenses regardless of how small they are
• Have a clearly defined expense policy and budget. Keep your personal expenses separate from your business expenses. Meeting a client over lunch can be claimed as a business expense
• Expense management applications will help you keep track anywhere and anytime
If you find your financial management an issue to deal with on your own, there are various solutions:
• Digital management
You may find an online application that will assist you in keeping track of these expenses. There are many different options to chose from, most of them extremely powerful. They are user-friendly and can often help with other financial aspects of your business. Always remember to keep the slips for tax submissions.
• Temp Assistance
You can hire a temp to assist you once or twice a week. This should be adequate to manage your administrative needs. Having your paperwork in order is critical for when you need to submit your tax returns.
• Virtual Assistance
If your workshop does not have the space for administration staff, you may even go the route of having a virtual assistant. Virtual assistance has become a solution for many small businesses. They handle aspects such as your data capturing, social media marketing, your bookkeeping functions, and even manage your email inquiries. This allows you to spend your time and the aspects that you are passionate about in the business.
A builder, plumber, mechanic, hairdresser, or artist has skills that require you to be hands-on and providing a service. This leaves little time for administrative tasks. Weigh up the cost of having a virtual assistant to handle the admin aspects of your business while you concentrate on service delivery to your customers. Your time is often too valuable to spend on hours of admin.
A good budget and an app or software to assist you is the key to controlling your expenses and managing cash flow.