As an entrepreneur, you know firsthand how difficult it can be to build your business’s savings account. But you also know that a well-managed savings account is crucial for building up cash reserves and reaching business goals.
The good news is that you can learn to save smarter. Due to the digital transformation of finance, you have a wide range of innovative tools and strategies that can amplify how you manage your business’s savings.
Now more than ever, seizing these opportunities isn’t just advisable; it’s essential to staying competitive and securing financial stability. However, if you’re not well-versed in fintech, you may not know about the latest savings opportunities.
So, let’s have a look at some of the most common and easy-to-understand tech-powered savings techniques available to entrepreneurs and small businesses today.
1. Leverage High-Yield Digital Savings
Interest rates in traditional savings accounts are nothing to write home about. Plus, many accounts come packed with time commitment issues, meaning that you can’t withdraw funds when the need arises.
Fortunately, as banks diversified their portfolios, they came up with more inviting saving solutions for savvy entrepreneurs. One such option is a digital high-yield business savings account that promises to put your money to work.
High-yield accounts are designed to deliver higher interest rates than traditional savings accounts, and they don’t have the added complexity or time commitment. Taking advantage of high-yield savings means your money doesn’t just sit; it grows.
The only issue is finding the right provider that offers minimal fees, accelerated growth opportunities, fluidity, convenience, and security (it’s best to look for an FDIC-insured provider). Based on these requests, Western Alliance Bank is a great provider.
A recent Western Alliance Bank review shows that their High-Yield Savings Premier account offers 5.36% APY, which is higher than most traditional and even online banks. Also, the bank is FDIC-insured, and there are $0 fees for account activity and maintenance. Overall, this is a pretty sweet deal if you want to keep your savings safe and growing.
2. Harness the Power of Automated Savings
The rise of fintech has ushered in a golden age for automated savings—a boon for time-strapped entrepreneurs. These intuitive platforms do more than take the guesswork out of saving; they make it easier to set some money aside without having to think too much about it.
By linking your bank accounts and setting predetermined rules, you can funnel small amounts into savings without feeling the pinch. It’s also a great way to empower your budgeting strategy and feel more satisfied when you draw the line at the end of the month.
This isn’t about cutting corners; it’s about smarter allocation. With modern algorithms at play, some platforms can even round up transactions to the nearest dollar, directing spare change into investments—a strategy that quietly but steadily builds over time.
Here are some fintech apps clever entrepreneurs all over the world swear by when it comes to automated savings:
- Acorns – Synonymous with simplicity in investing, this app rounds up purchases to the nearest dollar and allocates that spare change into diversified portfolios. As a business owner, this equates to effortless micro-investments, which will contribute to your financial future.
- Digit – Analyzes your spending behavior and siphons off safe-to-save funds into a separate account based on an intelligent algorithm. It’s as though there’s a prudent CFO in your pocket watching over your cash flows.
- Qapital – Great for goal-setters, Qapital encourages you to define financial objectives and automates savings accordingly. Small businesses can profit from its unique rule-based system, which converts specific activities or transaction types into saving triggers.
- Mint – More than just an app for tracking finances, Mint has features that aid in setting up savings goals and monitoring progress towards them, providing you with a comprehensive dashboard of your fiscal health.
3. Optimize Subscriptions Through Collective Bargaining
Monthly subscriptions and recurring payments can silently bleed a company’s resources if not kept in check. But what if there was a way to transform these financial outflows into opportunities for savings?
Enter collective negotiation platforms designed to turn individual entrepreneurs into part of a larger bargaining cohort. Such platforms employ the strength of numbers, negotiating en masse for better rates on software licenses, subscription services, and even office essentials.
The premise is simple: band together, negotiate as one, and unlock discounts that would otherwise be unattainable for solo operators.
Start by inventorying your current subscriptions and then look for services that specialize in this form of cost optimization. If you don’t know where to start, here are a few worth considering:
- Group Purchasing Organizations (GPOs) – These entities harness the buying power of their members to negotiate bulk discounts with suppliers. For small businesses, GPOs like UNA or Innovatix offer the scale necessary to slash costs on everything from office supplies to healthcare benefits.
- Co-op Purchasing Networks – Similar in approach to GPOs but typically more localized or industry-specific, co-op purchasing networks such as Office Depot’s Business Solutions Division or Affiliated Distributors provide a platform for small businesses to enjoy cooperative buying advantages.
- SaaS Buying Platforms – Software expenditures can accumulate swiftly in the digital era. Platforms like Blissfully or G2 Deals aggregate demand for software subscriptions, allowing smaller companies access to enterprise-level pricing.
Collective negotiation platforms give you the chance to be shrewd with every dollar and focus more on achieving your savings targets.
4. Use Blockchain for Secure and High-Return Investments
Blockchain, the backbone of cryptocurrencies, is no longer just a buzzword—it’s morphing into a tangible asset class for risk-tolerant entrepreneurs. By leveraging blockchain technology, you can tap into investment opportunities that offer impressive returns compared to traditional markets.
However, this isn’t about jumping on a bandwagon without due diligence. The key lies in understanding how blockchain investments work, like recognizing the potential of assets like Bitcoin or Ethereum and then using them to diversify your portfolio.
By investing in digital assets that have historically demonstrated substantial growth over the long term, you increase your chances of significant returns. However, you shouldn’t make any investments without a thorough market analysis and ongoing monitoring.
Another way to invest in the blockchain niche is to support promising startups centered around blockchain innovation. You can participate through venture capital funds or platforms like AngelList, which connect investors with burgeoning tech companies. While this strategy is not exactly focused on savings, it is a long-term plan for success.
Lastly, blockchain enables the fractional ownership of physical assets through tokenization—from real estate to artwork—allowing for smaller investments in traditionally illiquid assets. If you’re interested, platforms like Polymath guide businesses through regulated securities offerings on the blockchain.
The best tip we can offer is that you should navigate platforms that offer blockchain-enabled investments with caution. Opt for recognized exchanges with robust security features, even though their offers are not always the most tempting ones.
Remember: Warren Buffet didn’t build his empire overnight—it’s the strategic, informed choices that compound over time, potentially leading to substantial gains for those who approach blockchain with both curiosity and prudence.
5. Invest in Green Technology
One of the best long-term savings strategies entrepreneurs and small businesses can employ is to invest in energy-efficient technologies. Integrating sustainable practices and technologies into operations can reap significant financial rewards.
According to the U.S. Small Business Administration, implementing energy-efficient practices can save companies up to 30% a year on utility bills. Now, this is a significant yearly contribution to your savings account!
If you’re not sure where to start or have made some changes but don’t know how to move forward, here are a few tips:
- LED Lighting – Transitioning to LED lights can slash energy consumption by an estimated 75% compared to traditional incandescent bulbs. Moreover, LEDs have a longer lifespan—lasting up to 25 times longer—which means reduced replacement costs.
- Smart Thermostats – Businesses utilizing smart thermostat systems often see immediate reductions in heating and cooling expenses. According to Energy Star ratings, savings can get to about 10-15%, due to smart devices’ better precision in maintaining optimal temperatures.
- Solar Panel Installations – Although initial setup costs can be high, the long-term savings justify the investment. The National Renewable Energy Laboratory found that solar panels contribute to an average electricity bill decrease of about 50%. Plus, many regions offer incentives or rebates for solar installations, which can be an added boon for small businesses looking at upfront costs.
- High-Efficiency Appliances – Investing in ENERGY STAR-rated appliances may result in savings of $35-$300 annually per appliance due to lower energy bills, depending on usage rates and existing utility prices.
By incorporating these green technologies, you’re contributing to a more sustainable future while capitalizing on a financial strategy that pays dividends. Each watt saved by an LED bulb, degree moderated by a smart thermostat, or kilowatt-hour generated from rooftop solar panels translates into direct savings that accrue over time and bolster the bottom line.
To make sure you’re investing in the right tech and tools, it’s best to consult with energy efficiency experts to identify the most cost-effective strategies designed to fit your specific operations.
Wrap Up
In closing, weaving these innovative methods into your financial fabric can make the prospect of maximizing savings less of a Herculean effort and more a matter of strategic maneuvering.
Use these tools judiciously, reflecting on how each step helps build your financial future. It’s about setting the stage now for what could emerge as enduring prosperity. Apply discipline, wield technology with intent, and watch as your savings evolve from modest beginnings to a testament to your business acumen and foresight.
