Affordable Ways to Scale Your Small Business Faster
Dreaming of scaling your small business but afraid of the price tag?
Who doesn’t want to scale their business? More customers. More revenue. More success. Sounds great, right?
Here’s the catch.
Scaling takes money.
And most small business owners aren’t swimming in cash. In fact, according to one Goldman Sachs survey, 77% of small business owners say that they fear they will not have access to capital when they need it.
Luckily, there are cheap ways to scale your business faster.
You may only need a little boost to get started. Even $500 can pay for that emergency inventory, marketing push, or equipment repair that you’ve been waiting on to scale your business.
Here’s the inside scoop on how to affordably scale your business in 2024 and beyond:
- Small amounts of money can lead to big changes
- Cheap ways to scale that will actually work
- How to use small loans to your advantage
- Free ways to grow your business
Small Amounts of Money Can Lead to Big Changes
Don’t have $5,000? Think you need thousands to scale?
Think again!
Tiny amounts of money can set you up for big success. That $500 you were thinking about could be the social media ad campaign that nets you dozens of new customers. Or maybe it goes toward purchasing the supplies you need to fulfill that big order and land an even bigger repeat client.
A lot of small business owners get stuck waiting for the perfect amount of money to drop into their lap.
They tell themselves they need $5,000. Or $10,000. Or more.
Before they take action to grow their business.
But here’s the thing…
It only takes $500 to…
- Purchase inventory you need to crush your busy season
- Run targeted ads to a new demographic
- Repair equipment keeping your production at bay
- Attend a trade show or networking event
Each little funding decision you make will compound over time. That’s how you scale on a budget.
Cheap Ways to Scale That Will Actually Work
If you’ve never had to worry about your business budget before, scaling can feel expensive.
But there are tricks business owners have been using for years that cost little to nothing. Here are a few:
Lean On Free Marketing Channels
Social media doesn’t cost a dime. Yet most small businesses don’t realize just how powerful these platforms can be.
Whether that be posting consistently, engaging with others in the community, or providing value to your followers organically. Word of mouth is still the highest form of marketing and it’s free.
Automate Repeatable Tasks
Far too much time is wasted on things that can be automated.
There are free and low-cost apps for just about everything. Email autoresponders. Social media post schedulers. Invoice reminders. Follow-up messages with clients. Set the tools up once and forget about them.
Create Strategic Partnerships
Two heads are better than one. Two small businesses can often do bigger and better things when working together.
Seek out non-competing businesses that offer complementary services and see if there’s an opportunity to partner. Exchange service advertisements. Create referral incentives. Offer bundle deals to customers. There are many ways you can team up to help one another grow.
How to Use Small Loans to Your Advantage
OK sure. These tips help you scale without spending money. But what about when you do need a little cash?
Small business loans can be very useful when you know how to spend the money.
The best things to spend loan money on will:
- Bring in more revenue
- Have a measurable return on investment
Think about that paint job for the inside of your office. How is that growing your business? Sure, it needs to get done. But should it be done with money you borrowed?
Rather than using loan money to pay for generic bills. Use it for things that will:
- Buy inventory that turns over quickly
- Create a targeted ad campaign you can measure
- Repair equipment that will increase production capacity
- Take a course and learn a new skill
Borrowing money should always be viewed as an investment in your business. Don’t spend money without knowing how you’ll earn it back.
But if you do need a small loan, you can apply for a $500 loan online today. Most of these loans are approved within 24 hours. If you need money now, you’ll want to apply for one of these small business loans.
Free Ways to Grow Your Business
You don’t have to spend money to grow your business. Below are a few ways you can scale for free.
Optimize Your Biggest Revenue Makers
Your business already has money-makers. You just have to know where to look.
Analyze your current customers. Who spends the most? What are your highest margin products? Where are you getting referral customers from?
Focus on boosting your biggest revenue makers before trying to become a “jack of all trades.”
Ask Your Customers for Referrals
Your customers love your business. They just might not know what you need from them.
Create a referral program. Offer your current customers a small discount for sending you their friends. Make it easy for them to say “Hey, check out this cool company.”
Referral clients are the best kind of clients because they know what your business has to offer and they already trust you.
Improve Customer Retention
Did you know it costs less to retain a current customer than it does to find a new one?
Follow up with your customers after a purchase. Help them with any problems that come up. Send ’em gifts on their birthday. Small gestures that let your customers know you care will pay off in the long run.
A repeat customer is worth more than a one-time buyer.
When to Consider Outside Funding
You can’t fuel all of your business growth from your operating income. At some point, you’ll need to look toward outside funding.
According to a recent Guidant Financial report, “38% of business owners said capital is out of reach.” That means nearly 40% of business owners are missing growth opportunities because they don’t have the money.
When is it a good idea to look for funding?
Any time you come across an opportunity to grow your business that:
- Has a clear ROI
- Is time-sensitive
- Can’t be funded with money you already have
- Will help you reach your goals
It’s better to pursue a growth opportunity now and pay interest later than it is to watch that opportunity pass you by.
Wrap Up
Scaling your small business on a budget is possible. With these tips you can strategically grow your business both with and without spending money.
Remember:
- It only takes small amounts of money to start building momentum
- There are free ways to market your business that will give you results
- You can automate just about anything
- You can partner with other businesses to share the costs and grow together
- Small loans should be spent on things that will generate more revenue
- Your existing customers can help you grow for free
The business owners who scale the fastest aren’t always the ones with the most money. They’re the ones who learn how to best utilize their funds.
They start with what they have. Invest in things that will pay for themselves. Then they reinvest those returns into the next big thing.
That’s how to affordably scale your small business.
