(Blog by Ishana Luthra)

Having a bank balance which is eye-pleasing is dreamlike, isn’t it? We all would love to have a saving that keeps the mind calm between all the expenses.

You should read this if your mind is clogged with expenses and you don’t know how to start saving for yourself!

Every business has a gestation period; it begins to grow slowly with time. You cannot expect the business to fund your saving, when it needs initial investment. It’s only when the business is breathing on its own, you can start a saving plan.


I’d love to say this, every business starts small. Nobody gets a million dollar paycheck on day one (of course with the exception of a rarity of one in a billion).

And yes, you can save even if you have a small business. Rather, with my experience of working with multiple brands tells me that smaller brands are able to save more than the medium or large sized businesses.


Becoming frugal as an entrepreneur is not important. Saving needs to be a way of your working life. The practice of saving needs to start as a conscious effort and then become a habit.

Here’s a list of things, I’d love to share with you – ideas that have worked with most of my mentees:

1.       penitentially GO CASHLESS: Yes this might sound funny, but it works. It’s important that you limit your access to the money you have while keeping it within your reach still. If you can use credit cards, debit cards or online payment methods – that’s way better than using cash. The saving might be small at first, but over time it adds up to an amount that can pay a bill for you. Handy cash – causes an impulse to spend. Research shows, entrepreneurs with limited access to cash have a better expense to saving ratio than those who use cash mostly. Of course, if your business is cash intensive then this might not be a great hack for you. I’m personally a fan of this hack.

2.       START A RECURRING DEPOSIT: This is a basic and naïve banking advice. If you think you can spare a small amount each month from your earnings, start a recurring deposit in your bank account for 1.5 times of that amount. For example, if you save USD 50 per month, start a recurring deposit of USD 75. The idea of keeping it 1.5 times is to encourage you to save on the extra expenses (which might not be as essential) but are still happening in the process. Research shows that there is scope to save 1.5 times of what you already save. Pushing your limits a little will help you save more.

3.      REFURBISHED GOODS: Having brand new infrastructure for office or a manufacturing unit is great. But as a small business, considering refurbished machines, furniture, etc is a great idea. It saves you approximately 60% of your set-up cost and running cost as well. Be sure to add the money you save into your saving account after careful calculation. Let your mind know, you saved money and you earned it for yourself.

4.      PAY YOURSELF A SALARY IN CASH OR TIME: Most entrepreneurs don’t draw a salary from their business. Here’s a great hack. For example, you have a profit of USD 200 per month, pay yourself a salary of 1/5th of the amount at least i.e. USD 40 in this case. The remaining can be rotated back to your business. If you think your business needs investment or cash flow, and withdrawing money will not be a good idea – here’s another idea for you; pay yourself in time. Remember, you are the most important resource in your business, and your time devoted to the operations equals money.

Calculate 1/5th of the profit you make (for eg, your profit is USD 100 and 1/5th of that amount is USD 20). Next calculate how much would you hire a person for as skilled as you are (for eg, USD 25 per day). Now if you wish to pay yourself in time, you deserve to take almost 1 day off from work which would be equal to the profit you deserve from the business (costing approx. USD 20).

Paying yourself in time, helps you rejuvenate yourself, ponder on newer ideas and more. The day-offs you actually take are your savings – like an investment into your business and life! It also leaves you with a rewarding feeling of being paid for your hard-work.


Living a penny-pinching life is not the idea of saving as an entrepreneur. Saving from your business needs to be an effortless and a happy process.

Building a heart-warming saving in your bank account could take you a few months, but it all starts from one single day. Let today be that day.

Which is your favorite idea to save from your business?

Share your thoughts with me on

To your growth,


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