When it comes to running your own company, every entrepreneur knows that it pays to make money stretch further. Investment is notoriously hard to come by in our recovering economy, however, whether you have gained equity finance from angel investors or are financing your venture on your own, using penny-pinching tactics carefully ensures your money is used wisely across multiple areas of your business.
Check out these top tips for running your business successfully on a shoestring budget…
Don’t splash the cash when advertising
Advertising is one of the biggest expenses for companies of all shapes and sizes, however, you don’t have to spend a fortune to get your business the recognition it deserves. Being savvy with your advertising strategy will reap plenty of monetary rewards and connect with a wider audience than you think.
Teaming up with neighbouring businesses and sharing the burden of advertising fees can be a great way to spread the cost, whilst asking friends, family, staff members, business partners and satisfied customers to support your business with referrals is an excellent way to promote your products or services via word of mouth. Becoming an expert in your field and providing advice to customers, journalists and fellow industry professionals also offer an excellent opportunity to gain free publicity.
Embrace a new business age…
These days the majority of businesses launch and find success solely from online platforms, and if you are a traditional business launching an online store can cut costs dramatically as well as open up new revenue streams. Utilising virtual assistant technology can also help to relieve overworked customer service staff and provide your customer with a more interactive and helpful online experience.
…but don’t forget good old-fashioned networking
Whilst launching yourself online offers plenty of opportunities for businesses from various industries, the benefits of networking should never be forgotten. Whether you operate solely online, offline or a bit of both, networking with fellow industry experts and customers can build trust, increase customer loyalty and promote your products or services without burning a hole in your pocket.
Reduce your office overheads
Taking a closer look at how your wider business operates is a sure-fire way of highlighting costly practices and adopting more economical solutions. Your IT infrastructure can put stress on your finances and there are a variety of ways that you can streamline operations without impacting on business success. Using Cloud technology to store company and customer data, instead of storing on servers and in paper files, can cut costs and clutter.
Invest in your employees
Any good business is a credit to its workforce and whilst you may not be able to scrimp in this area, being smarter when it comes to employee economics is always recommended. Many businesses use temporary staff to cope with seasonal surges, instead of hiring full time all year round, whilst investing in future employees early i.e. when students are at college or university, through workplace programs is a great way to secure talent and support experience. Using commission based roles in sales can also be much more efficient and cost effective.
This post was written by Brittany Thorley from Mercia Fund Management. This venture capital firm connects investors with scalable businesses looking for equity finance and follow-on funding, and provides the support these enterprises need to handle finance, marketing and business development successfully.