It’s quite challenging to keep a business going when you’re on a tight budget, but it can be done. Small business owners are working in a harsh environment. That’s why planning is always a crucial part of any organisation, big or small.
Growth isn’t easy, and there is no pressure to get everything right straight away. Right now, don’t be afraid to start small and manage your expectations. Here are the best ways to run and grow a small business whenever you have a limited budget:
Organise and Improve Your Budget
Having a planned budget every month is essential. Every cent that goes in and out of your business should be recorded. You can build efficient and accurate cash flow forecasting to have a precise idea of your cash flow, expenditures and revenue, enabling you to make better business decisions and continue your operations with confidence.
Budgeting has numerous other advantages, such as helping you maintain an orderly tax filing process and gain an overview of your monthly position on a timely basis. With this, you can easily identify which items are necessary for repurchasing or remove expenses that are not worth keeping.
Cut Down on Employee and Office Expenses
Hire a full-time employee only when you need to. Freelancers are increasingly capable of doing ad hoc tasks for your business, including managing a website, creating content, running ads, and more.
You can also try saving more money by cutting office expenses by moving your operations online and in the cloud, taking advantage of technologies in digital services and other supply chain opportunities and efficiencies, such as dropshipping. If you need new equipment, don’t buy anything new until you’ve done your research. Often, your business banker may refer you to other businesses that are looking to offload the assets you need or a suitable equipment finance offer.
Look for Inexpensive Ways to Market Your Business
Market smartly by keeping a close eye on where your customers are online. Are they on Facebook, Twitter, Instagram, or LinkedIn? Do your research to see which of these platforms are often used by your target market.
Use social media to post regularly, updating your customers about your offers, or simply engage with them. You can enhance your visibility online by utilising local listings like Google My Business so anyone looking for a shop in your location can see your shop.
Lastly, don’t forget word of mouth. Reviews from real people, whether online or offline, are good for gaining publicity and trust. Make sure that you provide excellent customer service and great products to obtain deserved positive reviews!
Modernise Your Digital Infrastructure
Almost every business can benefit from free digital tools. There’s virtually nothing that can’t be done online more efficiently than on paper. If you’re still faxing documents or sending letters, it’s time to invest in a scanner and get savvy with email. Get all your staff onto a professional email setup using Gmail or Outlook; it’s cost-effective and will save you a bunch of time and headaches.
File sharing and other tools are also essential, particularly now that staff are increasingly working remotely and online. Google Drive and Dropbox are excellent tools, as is Google’s range of cloud-based office programs. Your accounting function should also be in the cloud, and your invoices should be sent digitally. Wave and Xero are two great options to consider for forward-thinking small businesses.
Build Relationships with Other Businesses
Don’t be afraid to connect with other businesses. When you have a good relationship with other SMEs (small to medium enterprises), you create the potential to generate new customers, which will eventually increase your revenue. Your business can also collaborate for events, cross-promotions, or have a bundle offer with complementing products.
Look for a Financing Option
Going for a bank loan is the default choice for most business owners. With its lengthy processing, you might want to try alternative funding instead. These options provide more freedom to small businesses since there are fewer strict criteria, it lends money more quickly, and you can use it to keep an efficient cash flow.
One of the funding options you can use is invoice finance. With invoice finance, the lenders will buy your unpaid invoices in advance to fuel your current business operations. An invoice finance facility allows you to access up to 90% of your outstanding invoice value upfront as cash in your bank account. The remaining amount is paid when your customers pay the invoice – minus a small fee.
It gives your business the working capital it needs while allowing you to retain complete control of your sales ledger, as well as the relationship with your customer. Instead of waiting for your customers to pay, you can access the cash today.
Keep your business running with TIM Finance. Fast funding and flexible repayments are a great financial opportunity, especially when you’re in a pinch. Grow your business with TIM today.