How to Grow Your Business on a Tight Budget

It is crucial to continue growing your business whether to raise profits, expand operations, or shelter against economic disasters. It takes time, strategy, and money to grow but there are many ways to make an impact without overspending.

The tips below will help you grow your business on a tight budget.

Rethink your marketing strategy

To attract new customers and improve sales, revisit your marketing plan beginning with the budget. It is recommended that businesses spend anywhere from 2-8% of their budget on marketing.

You need to determine which marketing strategy has the highest ROI. Ideally you can cut costs on low-scoring expenses by switching to free business solutions. Platforms like Trello and Hostile are great free project management options and social media scheduling, respectively.

Bring value to customers

Finding creative ways to bring value to potential customers can help you secure new business. Consider what you can offer beyond your products and services whether it is a free eBook, how-to video or infographic that sheds light on a topic.

Blog posts are a great way to start since people search on Google how to do things. This is how they will find your blog and sign up for your offering. You can also act as a resource for people such as answering questions on Reddit or Quora. This helps you be established as authorities and can drive many leads to your website.

Emphasize customer reviews and referrals

Gather customer reviews and referrals as a way to expand your customer base. Many consumers read online reviews for local businesses and reviews make people more likely to use that business. Customers have a habit of knowing and liking something then they are going to recommend the business.

If you do not use social media for your business, it is time you do so. You can ask people to leave a testimonial or incentivize customers or clients to refer you to their friends and family by offering future discounts on products or services.

Make sure that you read and respond to the feedback you receive. Consumers are more likely to use a business that responds to its reviews. Be sure to take the time to thank customers for their comments and address negative feedback in a polite way.

Build relationships with other businesses

Developing relationships with other businesses can help you generate buzz, discover new customers, and increase your revenue. You can also collaborate with businesses for events, fundraisers, and cross-promotions. If you sell bath products online, you could team up with an at home massage service and offer discounted spa treatments or product bundles to your customers.

Strategically use small business financing

To grow a small business you can also use small business financing but you need to be careful about your choices and be responsible with managing the repayment. This will not only help you with your financial need but also help you build a solid business credit history.

Some of the types of small business funding options are what you can consider:

  • Term loan: this is where a lender loans you a lump sum of cash up front in return for a promise to repay the total along with interest and fees. This lasts about 3 to 5 years.
  • Short term loan: this is like a term loan, but the duration is 3 to 18 months and payments are made on a weekly or daily basis.
  • Business line of credit: funds are pre-approved by the lender with a maximum credit limit. You can then draw funds out of this pool as you need them and only pay interest on the amount you use at any time.
  • Business credit card: when it is handled responsibly, it is a great way to grow your budget for your business. Some credit cards offer no APR interest for a year or more. This makes it a cost-effective way to borrow money for your business.

The Bottom Line

It might seem daunting to grow your business on a tight budget, but it is possible. You just need to learn how to market strategically, cut costs, and nurture relationships for your customer and you will be set-up for long-term success.