Mom Invented

Starting a new business can mean a long-time dream come true. And if you're in the process of launching, you've probably learned how costs add up quickly and how many expenses pop up unexpectedly along the way.

Plans to buy a new computer? Thwarted. That top-of-the-line BlackBerry? Downsized. Class A office space? A home office may have to do for a while.

Smart businesspeople--if they want to ensure there is money left over to keep a dream alive--quickly learn the art of compromise. Compromises don't have to be huge, however. Slight changes in your personal spending habits can make a real difference in the amount of money you have to invest in your business.

None of us wants to give up the little luxuries we've grown accustomed to (especially luxuries that are relatively scarce). But comparing those costs, dollar for dollar, to what they might do for your business could make converts of us all.

They may not seem like much at first--until you add them up over a period of time.

Your morning latte. I wouldn't dream of telling you to give up your daily caffeine. But if you're spending, say, $3 a day on your morning coffee run (or your afternoon pick-me-up), consider how those costs add up. At $3 per day, five days a week, 52 weeks per year, that's $780 in coffee. You could buy a new printer, fax machine and PDA with that money--or attend a great business seminar.

Your weekly manicure. If you're among the many women who spend an average of $15 a week on a manicure, doing it yourself can save you another $780 per year. That could translate into a new laptop so you can work more efficiently.

Eating out. Hands down, the fastest way to save money is by eating in. Eliminating just one meal out each week can save an average of $50 a week. That adds up to $2,600 per year. That could mean a new website or funds to hire a PR consultant.

If your family already eats most meals in, small changes can cut down on your weekly grocery bill. Consider clipping coupons or shopping multiple stores. Yes, both take time, but they are sure ways to save. In addition, you can buy store brands instead of name brands, fill your basket with fresh fruits and vegetables instead of prepared and convenience foods, and buy in bulk. Cutting $20 per week from your grocery bill isn't difficult to do and will save you more than $1,000 in a year's time. That could pay airfare and expenses to a trade show.

Avoid spontaneous purchases. I could easily spend $100 every time I go to a department store. So when I take my kids to the store, we have a list in hand--and we avoid buying anything else (like items from those tempting $1 bins at the front of the store, which quickly add up). I figure I save at least $20 per trip in impulse purchases this way, and if I go 10 times per year, that's a savings of $200. That will pay for web hosting for a year--with money left over.

Meet over coffee instead of lunch. If you've given up your daily coffee run, here's a loophole to justify it again. Instead of meeting business associates over lunch, meet at a coffee shop. At an average price of $30 for lunch versus $10 for coffee and a sweet, that's a $20 savings. Over a year's time, saving on 12 lunches--and that's just one per month--means an extra $240 in your pocket. That's a good 20 hours of babysitting, so you can spend more focused time on your business.

Simple strategies? Yes. Observe just a couple, though, and you'll end up with some valuable long-term assets and an investment in your success. Once your business is thriving, you can reintroduce those little luxuries back into your life--and then some.

Article first published on WomenEntrepreneur.com

Tagged as: advice, Business Advice, finances, saving money, WomenEntrepreneur.com