Financial struggles keep many business owners awake at night. You need capital to expand your team, purchase business equipment, go after new projects, and pay off debts. Given that, it is not surprising at all that almost half of SMBs fail because they run out of cash.
This article teaches you how to grow your small business on a tight budget.
Find Alternatives to Expensive Business Necessities
When launching a business, start small. Hire employees that are necessary for your company’s success. As your company grows, expand your team strategically without compromising its financial stability.
For example, instead of hiring a full-time accountant, consider outsourcing bookkeeping to a freelancer or an agency. You can even use a low-cost cloud software solution to manage payments, payroll, and invoices.
Also, investing in new tech solutions is critical for your company’s success. It boosts employee performance and workplace safety. However, to keep your tech regularly maintained, you need to have an IT team to back you up. Instead of hiring an in-house IT department, consult a managed IT services provider to cut costs. They will keep their finger on your business’ pulse, identify potential performance gaps, and provide you with high-end office supplies that are best suited for your business’ budget and needs.
Launch a Customer Referral Program
According to studies, 92% of consumers trust online posts from their family and friends. That is where customer referral programs shine.
First, they are an opportunity to attract new customers. When someone gets referred to your company by a friend or a family member, they are more likely to trust it. Surveys show that 50% of the businesses say that they got the majority of customers through referrals.
Second, referral programs encourage brand loyalty and advocacy. They indicate that your brand appreciates its existing customers.
Sure, a good reward is crucial for the success of your referral program. Choose incentives that resonate with both your existing customers and potential leads.
For example, Uber has a simple referral program. When you sign up for an Uber account, you receive cash credits for your first ride. If you refer friends to sign up using your code, the two of you will get rewards.
Run a Social Media Contest
Apart from being free, contests are a perfect way to grab potential customers’ attention and evoke their fear of missing out.
Instead of promoting your business on your own, you will let your customers do that for you. By reviewing your business, commenting on your posts, using your hashtags, or posting UGC, they create social proof.
Seeing that real people just like them trust your brand, prospects will trust you more and make purchasing decisions faster.
A contest also engages your customers, gamifies their experiences, and encourages brand loyalty.
When running a contest, have a few things in mind:
- Pick the right reward. It could be a gift card, a discount, a free trial, or a product – anything that encourages customers to participate. These expenses are a marginal cost when compared to the brand visibility you will generate from these campaigns.
- Choose the right channel for a contest. Many brands use Instagram. As a visual platform, it is perfect for photo and video contests.
- Keep it simple. If it is a photo contest, ask followers to post a photo using your product. For better brand visibility and memorability, create a dedicated hashtag for customers to use. Choose the time when you will announce the winner and stick to it. The rules need to be easy-to-understand and consistent.
Build your Email List Strategically
Focus on creating a thorough email list that will meet your expectations.
Now, most email marketing platforms charge services per subscriber. Therefore, once you reach a specified limit, your monthly fee may grow. Precisely because of that, you need to generate leads strategically.
Create solid buyer personas and stick to them. Make sure the leads you attract are interested in your content and products. By casting the net too wide, you will waste marketing resources without converting customers.
Another great option to consider is email list segmentation. Slice your list down into smaller groups based on customer preferences, needs, and problems. That way, you will be able to create personalized content that resonates with them.
Over to You
Growing a business does not have to be expensive. There are many powerful tactics that will help you attract new customers and retain existing ones without emptying your bank accounts. All you have to do is implement them strategically.
Remember that there is no uniform strategy that works for all small businesses. Instead, tailor the tactics mentioned above to your company’s budget, customers, and needs.
Which cost-effective business growth strategies do you use? Please, share your thoughts and experiences with us!
Eve Anderson is a marketing specialist turned blogger. Interested in sports and exciting travel destinations. Love to share content that can inform people.