Most small business owners have inspiring stories about how they bootstrapped their businesses through periods of uncertainty, ingenuity, and resource scarcity. As an entrepreneur, you are entirely responsible for the financial decisions that ultimately determine your business’s success or failure. Although scaling up on a tight budget is not easy, it is quite doable with a little research here and some creativity there.
1. Invest in Affordable Software Solutions
Many veteran entrepreneurs may argue that a business is only as good as its personnel. While that may be true to some extent, running your business during its infancy on a lean budget may force you to make do with a small team or no team at all and still offer exemplary services. That is where affordable software solutions step in.
Thanks to small business apps, business owners can now automate tasks that once required teams to execute. Besides the typical accounting, communication, and inventory management software, business owners can integrate apps that handle master data management, staffing, employee payroll, and other essential yet otherwise expensive functions. For instance, using a cloud MDM solution is more affordable and convenient than hiring someone to manually maintain master data across multiple domains, e.g., products, customers, and locations.
2. Outsource to Minimize Employee Expenses
It can be quite tempting to recruit new staff members when work begins to pick up. However, if the project in question is seasonal or requires expert competencies, it might be wiser to consider a 1099 contractor.
Despite the seemingly expensive hourly rates, hiring 1099 contractors is cheaper than maintaining full-time employees. Unlike full-time employees, contract workers handle all of their expenses, including taxes, meaning that you have no obligations for traditional employer responsibilities like Social Security, Worker’s Compensation Insurance, and any relevant taxes.
3. Employ Small Business Financing to Your Advantage
Going into debt may not seem like the smartest way to scale your small business. But if you use the money responsibly and service your debts as required, getting a business loan might bridge your company’s financial gaps and improve its credit history. Here are some valuable funding options you should consider:
- Short-term loan
- Term loan
- Business credit card
- A business line of credit
4. Grow a Sizable Online Presence
Any company’s growth is limited to its ability to attract new customers while retaining the existing ones. Marketing and advertising – if done correctly – are the most effective, if not the only tools that businesses can use to lure potential clients. Large corporations allocate significant portions of their budgets to marketing and advertising.
As a small business running on a tight budget, online marketing is by far your best shot at growing a sizeable audience without going bankrupt. Begin by creating a company website and performing an audit of your ideal customers’ interests and preferred social media platforms. Open an account on each of the identified social media platforms, and invest plenty of time into growing a relevant following. Lastly, optimize your website for SEO and collect qualified leads through call-to-action buttons.
5. Act on Customer Feedback
Customer feedback is like a mirror that reflects what customers perceive of your products and services. Although it is almost impossible to act on each response, assessing your company’s overall rating will help you stay on the right path and improve where necessary.
Budget constraints are a common deterrent to business growth, particularly during the formative phase. With the right mindset, information, and approach, you can overcome the odds and grow your company to heights previously unfathomable while picking up valuable lessons along the way.