How to grow your business on a tight budget
How to grow your business on a tight budget
Want or not expansion Operate, increase profits or avoid Economic disaster, It’s vital to continue growing your business. Grow It takes time, strategy, and money, but there are many ways to make an impact without overspending.
Here are five tips for growing a business on a tight budget:
1. Rethink your marketing strategy
In order to attract new customers and increase sales, first revisit your Marketing Plan, Starting from the budget. “I suggest companies spend 2-8% of their budgets on marketing,” Mr. Ken said. Biz” Wentworth, a business consultant and Mr. Business Solution.
The key to wise spending is to determine which marketing strategy has the highest return on investment. Ideally, “you should expect a 300% return on every dollar you spend,” Wentworth said. “Spent 10,000 dollars should be equivalent to an increase in income of 30,000 dollars.”
The aim is to review the costs and returns of marketing efforts at least quarterly to see which ones work and which ones don’t.Maybe you see high returns Email activity, For example, but hardly received a reply to the email you sent.
“If you find that $6,000 of the $10,000 you spent doesn’t help you make money, you can redistribute it,” Wentworth said.
Depending on your budget, you can reallocate funds to one of your existing distribution channels or Use it to try Popular marketing methods, Like the video.according to The State of Wyzowl’s Video Marketing in 2020 The report shows that 84% of consumers said that they purchased a product or service after watching a branded video.
“People do business with people they know, like and trust,” Wentworth said. “The easiest way to get customers to that place is to determine your personality and value by watching the videos you post.”
2. Cut costs
Cutting down on fat in your business can provide you with more cash for marketing or growth projects.
“When you cut expenses, the most important thing is to make sure that the cuts you make don’t affect your income channels,” Wentworth said. Check your expenses carefully and give each item a score. He said: If it directly affects the company’s income, it is three points, if it indirectly affects income, it is two points, and if it does not affect income at all, it is one point.
“I’m not going to cut these costs with a 5 or 6-point cost line,” Wentworth said. Instead, he recommends reducing the cost of the average score by 20-30%, and reducing the cost of the lowest score by 50-100%.
You can cut the cost of low score fees by switching to free Business solutions anywhere is fine. “There are smart ways to get the same value at a cheaper price,” said founder and CEO Keene Graham. Monetize more.
Company likes Waves There are free business accounting services, and tools such as Trello and suite Provide free project management platform and social media schedule respectively.
3. Bring value to customers
Finding creative ways to bring value to potential customers can help you Securing new business. Think about what you can offer beyond products and services, whether it’s niche podcasts, how-to videos, free e-books, or infographics that illustrate confusing topics.
Blog post Graham said that meeting audience needs is a good starting point. “People search for how to do things on Google. This is how they find your blog and ultimately register your product.”
If you run a Cleaning business, For example, you can write a blog post with deep cleaning tips or step-by-step instructions for removing common stains.
Another way to bring value is to act as a resource. “We answer questions related to ad optimization on Google product forums, Quora, Twitter, and Reddit,” Graham said. “We found that this enables positive interaction with the sub-community, makes us an authority, and promotes many qualified potential customers [to our site]. “
4. Emphasize customer reviews and recommendations
Collecting customer reviews and recommendations is one of the best ways Expand your customer base. According to BrightLocal 2019 local consumer review survey, 82% of consumers read online reviews of local businesses, and 91% of consumers said that positive reviews make them more likely to use the business.
“It can be traced back to’know, like and trust.’ If a customer knows, likes, and trusts someone recommends my business, then the new customer will feel good,” Wentworth said.
Consider posting on social media or emailing customers to thank them for their business and ask them to write online reviews. You can also motivate customers or customers to recommend you to their friends and family by offering future discounts on products or services.
However, please make sure that you have read and responded to the feedback you received. According to the above survey, 71% of consumers said they are more likely to use companies that responded to their reviews. Take time to thank customers for their comments and handle negative feedback in a polite and constructive manner.
5. Build relationships with other companies
Building relationships with other companies can help you create a stir, discover new potential customers, and increase revenue.
Graham said that forming a strategic partnership is helpful. “We have successfully established partnerships with companies such as Google and WP Engine, which have provided valuable transportation [to our site] On a consistent basis. ”
You can also cooperate with companies event, Fundraising activities and cross-promotions. For example, if you sell specialty bath products online, you can work with home massage services to provide customers with product bundles and discount spa treatments.
Business relationships are a great way to open up new markets and Make your existing customers feel valued.
Growing your business under a tight budget may seem daunting, but it is feasible. Learning how to market strategically, cut costs, and cultivate customer relationships can help you achieve long-term success.
Disclaimer: Fundbox and its affiliates do not provide financial, legal or accounting advice. This content is for reference only and is not intended to provide and should not be used as a basis for financial, legal or accounting advice. You should consult your financial, legal or accounting advisers before making any transactions.