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In the first half of 2022, venture capital firms invested $6.2 billion in 371 business deals in Canada. The figure highlights how much investors are willing to spend to support the businesses in the country.
Canadian startups should take this opportunity to secure funding from active investors in their province. Working with investors can be a good solution for entrepreneurs who need to earn more revenue to keep their businesses afloat. However, there are also simple money-saving tips that can help them with their expenses.
Be Smart About Ad Spending
It may be wise for startups to spend less on advertising. Marketing is indeed key to getting new customers. However, spending too much on promotions is unnecessary since there are budget-friendly strategies you can try instead.
For example, you can include advertising content in other mailings, like invoices or emails. One strategy is tucking promotional fliers, coupons, or other ad materials in the bag with customers’ purchases.
Another example of this tactic is holding contests, forums, or other events focused on topics relevant to your industry. Offer expert advice to an audience by teaching classes, writing articles for local newspapers, or speaking at community events.
These examples can help make you look like an expert while getting low-cost attention for your startup.
Another way to save on advertising is to split marketing costs with businesses that complement your product or service. You can share distribution channels, mailing lists, and suppliers with these businesses to help you save money.
Create a Solid Financial Plan
If you want to reach your financial objectives, you will have to develop a financial plan. This tip might sound obvious, but many new entrepreneurs skip this step. They deem it too overwhelming or unnecessary.
However, having a financial plan helps you take inventory of the current state of your business. It can help you identify strategies to achieve your business goals. It also allows you to make informed decisions in emergencies.
With a financial plan, you can have answers to the following questions:
- What is your financial goal?
- How many sales do you need in a certain amount of time?
- What happens if you fail to reach your goal?
- What happens if you exceed your expected sales?
Know Your Tax Obligations
All businesses must report their income and expenses to the Canada Revenue Agency (CRA). You can always hire a certified public accountant (CPA) if you need to know your tax obligations. You want to work with the best CPA firm in Toronto that can help you stay on top of your tax obligations.
Paying your taxes is crucial to avoid hefty fines or penalties. Moreover, knowing your tax obligations can help you legally lower your taxes. If you understand tax laws, you can save more during tax season.
For example, keeping your business receipts can be crucial since you can write all of them as business expenses. Seek expert advice from a tax professional so you can navigate tax laws and policies for your startup.
These are simple money-saving tips that Canadian startups must know. With these tips, entrepreneurs can save more on tax and marketing costs.
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