3 Tips to Tackle Big Expenses For Your Small Business on Labor Day 2022
Ahh the end of summer, can you believe it’s already here? It feels like we just saw the sun for the first time and now the leaves are already starting to change. If you’re in the northeast, that is. Can we stave off the winter blues for just a bit longer?
With the end of summer comes lots of fun and anticipation. Back to school, football, the end of the 3rd quarter, and a time to plan how the end of the year will look for your small business. And with the state of inflation, why not take advantage of Labor Day sales 2022 to tackle some big expenses for your small business?
With so much to keep track of as a small business owner, you need all the help you can get to keep your budget happy and your pockets full.
Today I’m discussing why Labor Day sales 2022 can be a great tool for your business. But I also want to talk about the deeper issue of how to prepare for known expenses and find peace of mind through sinking funds.
Let’s dive in!
A Bit of Labor Day History
Who doesn’t love a bit of a history lesson? I know I’ve got at least one history buff excited to learn a bit more about Labor Day.
It originated in the late 19th century when labor activists pushed the government to acknowledge the many contributions the working class made to the wealth and prosperity of America.
The founders of Labor Day expressly wanted it to be a day of parades, fun, and family time. So it only makes sense that business owners would take advantage of relaxed family fun and create a sale to promote their businesses.
This year, Labor Day 2022 falls on Monday, September 5th. So mark your calendars and get excited about some money-saving deals.
Tackle Known Big Expenses on Labor Day 2022
The great thing about being a stellar business owner is that you know where your money is at. You’ve got a crystal clear budget that outlines where every dollar needs to go and your cash flow is on the rise.
Perhaps, you’ve followed your budget so well, you’ve got a surplus of funds and you want to finally upgrade your office equipment, add an appliance to your workspace, or invest in new technology.
Whatever your niche is, here's a game plan for Labor Day 2022 that you can apply to any small business.
1. Write out expected expenses
Perhaps you need simple paper and pens, bulk fabric for your new winter line coming up, or new computers for the team. If you write down your wants and needs (and categorize them in order of importance) you won’t have to rely on your taxed brain to remember what you need.
In the heat of a sale, it’s easy to overbuy and bust your budget. So, go into the exciting weekend with an accurate list of your big expenses.
2. Research your favorite suppliers
Start digging, you may be surprised what kind of sales you’ll find. Business owners are eager to clear extra stock and prepare for holiday inventory – making you the recipient of some incredible deals. Don’t be afraid to venture away from your favorite brands and suppliers. You may be able to support another small business with your prudent planning.
Also, if you’re worried that a sale is “too good to be true”, check all the information and ensure you're getting the best deal. If the sale feels like a scam, it probably is. 75% off a new laptop might sound great financially, but if it breaks down next year then it’s not the best decision for your wallet or business.
Research is one of the most important steps and will help you capitalize on all your purchases.
3. Take Action
On Labor Day 2022, or perhaps a few days before, you can “add to cart” from the comfort of your own home or venture out in person to find the best deals.
*Pro tip* If you’re easily overwhelmed with a sale and you have the temptation to spend too much, talk to your business partner about accountability to help you stay on budget.
Finally, don’t be afraid to negotiate! I don’t mean to undersell the product, but you never know what kind of additional deals you can find if you don’t ask.
Use Sinking Funds and Always Be Prepared
Rather than waiting for a Labor Day sale to conquer all your known expenses, there’s a better strategy. Sinking funds.
I discuss the advantages of sinking funds in full detail here, but for a quick review, I want to reiterate why they’re so important.
Sinking funds allow you to control the uncontrollable. Your budget keeps your monthly expenses in line and your sinking funds keep your expected big expenses in line.
Remember, not everyone is going to have a Labor Day sale. Things like insurance premiums or LLC renewals don’t go on sale. Your sinking funds provide the big chunk of money you need so you don’t have to scramble when a big expense is due.
I’m a firm believer in preparing and using every tool in your toolbox, so use the Labor Day sales when possible but better yet, stay on top of your known expenses and set aside cash reserves for them.
Create a Stellar Budget and Sinking Fund Plan with Financial Fitness Coaching
As a savvy business owner, you’re on top of your expenses. You know what your company needs to thrive and you do whatever you can to save money so you (and your employees) get paid well every month.
But sometimes you need a little help sorting through it all and that's okay. Financial Fitness Coaching is all about helping you help yourself. We’re the experts in finances so you can be the expert in your small business. To see how we can help you and your business email me at kristen@financialfitnesscoaching.com or simply schedule a free 20-minute Discovery Call on my calendar.