If you want to succeed in business, it's not enough to just increase your income—you also need to know how to save money wisely. Many entrepreneurs grow their earnings but fail to save, which leads to financial trouble in the future. If you start saving with proper planning from the very beginning of your business, it can help with future investments, business expansion, or emergencies. Starting a business means navigating through risks and uncertainties. One of the biggest challenges during this time is saving money to manage those risks.
Many entrepreneurs believe they will start saving once their business grows. But the reality is, without proper planning from the beginning, they often face serious problems later. That’s why it’s wise to learn and follow effective saving strategies right from the start.
In this blog, we will discuss why saving money is important for entrepreneurs, why we often struggle to retain cash, and how you can start saving effectively using seven practical strategies right from the beginning.
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Why saving money is important for entrepreneurs?
First, you need to understand why saving money is especially important for entrepreneurs. In the world of business, it’s not enough to simply earn money—you must also control expenses and prepare for the future. When you know how to save money properly, it becomes easier to:
- You will be able to handle unexpected expenses.
- You will be able to show interest in new investments.
- You will be able to survive during business downturns.
- You will feel mentally secure.
Actually, savings are a kind of safety net for a business that helps you stay stable even amid uncertainties. By developing strategies or habits for saving money, you can build a strong financial foundation that will support the growth of your business in the future.
Why don’t you have cash on hand? Find the answer to this question!
Now you need to find the answer to why you don’t have cash on hand! A common complaint from many business owners is, "At the end of the month, I find nothing left!" Why does this happen? Let’s explore some reasons—
- Unplanned expenses are the main cause. Not keeping a proper record of how much money is spent in each area leads to unnecessary costs!
- Not preparing a regular budget.
- Buying on credit or on account creates a mountain of debt.
- Not keeping or knowing the profit and loss accounts.
- Mixing personal expenses with business expenses.
The first step to solve this problem is to analyze your business financial behavior and start using a good quality accounting software.
Seven ways to save money from the very beginning of your business
Now let's learn about seven effective and practical ways to save money that you can follow from the very beginning of your business.
1. Keep a clear record of income and expenses
The first step to saving money is transparency in income and expenses. Keep a record of daily income, expenses, and transactions. Using accounting software makes this task easier and more accurate. It is important to make record-keeping simple because if it becomes complicated, you will feel tired and may stop maintaining the records.
2. Create a business budget and plan
Create a specific budget for each month or year for your business and spend accordingly. A budget sets the limits for your expenses and helps avoid unnecessary costs. A budget is like a clock; once set, it will keep ticking in your mind constantly.
3. Set aside a fixed portion of your profit.
Set aside at least 10-20% of the profit from your business. This will serve as your future fund. It is an important strategy for a sustainable business. Once you turn this into a habit, you will be free!
4. Reduce unnecessary expenses in both your business and personal life.
Review different areas such as excess staff in the office or unnecessary electricity expenses. By reducing these costs, savings can be increased. Here is a simple solution: always remember - saving one taka means earning one taka!
5. Use accounting software
5. Accounting software is excellent for keeping track of daily transactions, inventory, sales records, and generating reports. It saves your time, reduces errors, and helps you clearly understand your financial situation. Remember, the easier and more accurate you keep your business accounting, the more interested you will become in managing it. Otherwise, the opposite will happen — you will become a careless businessperson.
6. Separate business and personal expenses
Never use your personal expenses from the business funds. Open two separate accounts and manage expenses and deposits accordingly. This will make it easier to keep accurate business records.
7. Create a separate fund or account for savings.
This is the easiest but most important! As a money-saving strategy, open a separate bank account solely for savings. Deposit a fixed amount into that account every month.
Use accounting software to reduce business expenses.
Often, you may try to reduce expenses, but end up creating more problems when keeping accounts. In this situation, accounting software can become a silent assistant for your business!
An effective accounting software gives you—
- Daily transaction records
- Invoice generation feature
- Income and expense analysis
- Profit and loss statements or reports
- Stock and inventory tracking
- Outstanding dues tracking, with messaging and reminder features
- Report generation and assistance in financial decision-making
By using this technology, you can bring transparency to business expenses and find opportunities for savings in the right places.
If you know the ways to save money from the very start of your business, you will be better prepared to face unexpected risks. By properly keeping track of income and expenses, creating a budget, setting aside a specific portion of profit, controlling costs, and using accounting software, you can build a sustainable financial foundation for your business.
Remember, ways to save money are built from daily habits. So, you must start from your personal life!
Demo - View this & start your journey with HishabPati in three simple steps!
- Step 1: Sign up on HishabPati
First, go to the HishabPati website and create an account for your business. Or, to make managing your business easier, download and install the ‘HishabPati’ app for free today.
Then complete the registration. The registration process in HishabPati is very easy and completely free!
- Step 2: Set up your company
After signing up, first set up your business profile by providing the necessary information as the owner. Then, set up essential business aspects such as inventory, units, purchases and sales, outstanding balances, invoices, and transactions. After that, start updating daily transactions.
- Step 3: Enjoy the various features of HishabPati
After starting to keep business accounts on HishabPati, make use of the necessary and unique features, such as invoicing, barcode scanning, units, and expense management, among others.
Watch a demo video on YouTube in Bengali to understand the usage and features of HishabPati in detail.
Digital ledger for income and expenses – HishabPati demo.
HishabPati's subscription fee starts at just 99 Taka!
HishabPati is Bangladesh's easiest and most affordable accounting app. Its subscription fee is divided into monthly and annual terms, with three budget-friendly packages available.
- 01. Basic Package: The Basic package is completely free! This means you can try out the app without purchasing a subscription.
- 02. Premium Package: The monthly subscription fee for the premium package is just BDT.99. And there's a 17% discount on annual subscriptions! It will cost only 999 taka in a year!
- 03. Business Package: The monthly subscription fee for the Business package is just 199 Taka. Like the Premium package, the annual subscription also comes with a 17% discount, making the yearly cost only 1990 Taka.
Know about all features of packages today in details & choose your desired package. Good luck with your business!
