It’s an exciting thing to start your own business. All of your ideas have started to come together, and you’re finally acting on that dream you’ve held so long. The good part about starting is that you have actually taken the steps you need taxi begin this journey, but the part is that generally the finances start nipping at your heels before you reach a point where you’re making plenty of money. Cutting your costs and protecting your finances is essential if you want to keep your business going.

Set up an Emergency Fund

Emergencies will happen, whether you’re prepared for them or not. It doesn’t matter whether you run a professional website design company or whether you run an online retail clothing store. You will run into emergencies at some point in your entrepreneurial journey. Setting up an emergency fund is the best way to avoid being bankrupt by these emergencies, regardless of whether they occur at home or in your business.

However, if you don’t have a lot of money, it can seem impossible to set up an emergency fund. The key is to start small. You should have all of your business funds in a separate account anyway. Take it one step farther and set up a separate account to put in your emergency funds. The money put into this account can be for any kind of emergency, unless you have to comply with state laws regarding business finances and personal finances. Whenever you get paid, try to set aside anywhere from 10% to 20%. If you can’t do this, then set aside as little as five dollars. Over time it will add up.

Cut All but the Essentials

Sit down and consider what you are actually spending and what you really need. While some luxury can be nice, you will need to actually evaluate whether it is necessary in your situation. While $30 a month extra doesn’t make a lot of difference in the short term, it can make a tremendous difference for your business as it adds up with other expenses. So if you can cut the cable television and stop buying Starbucks, you will save yourself money in the long run.

If you’re already doing this though, you can still check your finances to see if there is more that you can. Consider what you are using in your business. Often times, it can be tempting to purchase more elaborate software packages and subscription packages that you actually need. While you want to keep in mind room for growth and making sure that you can meet your clients needs, you also need to evaluate your situation realistically. You may not need unlimited web hosting for the next five years. That other package that cost half as much doesn’t look as impressive to you, but it will meet your needs and allow plenty of room for growth over the next few years.