As business owners, we all have big plans. But sometimes our dreams aren’t made possible by our current financial reality.
The bottom line is, if you don’t have a lot of money to invest in growing your business, you’ll need to get creative with your cash. Here are several ways to ensure your money goes further.
Get clear on your budget
However small the pot may be, it’s important to get a handle on how much money you have available, and what your expenses are likely to look like in the months ahead.
Budgeting correctly will help you prioritise where your funds need to go, and identify how much you have left for sales, marketing, and business development activities.
Aside from everyday expenses such as office rent, staff wages and supplier costs, you’ll also need to consider how much money you’ll need to keep aside for your tax bill. Try to avoid dipping into your tax savings when funds are tight, as having to make up the shortfall ahead of your tax deadline can place unwanted pressure on you and your teams.
Carry out an audit of your systems and processes
Are you and your staff using paid-for apps when there are free tools available that perform the same functions? Are you still spending out on unnecessary subscriptions? Could you be running things more tax efficiently? By carrying out an (honest) overview of what’s happening internally within your business, you will often spot opportunities to save cash.
For example, you could use Microsoft OneDrive (part of your Office 365 bundle) for cloud sharing, rather than pay for a business account with Dropbox – or you could consider free project management software such as Slack instead of investing in more expensive alternatives.
Be selective about who you employ
The last thing you need is a sky-high wage bill. So, ask yourself: who do you really need to succeed? Be extremely clear on the kind of talent that is going to take your business to the next level, and don’t be tempted to hire anyone who doesn’t match your stringent criteria. Better still…
…Be prepared to outsource
If you have a one-off requirement for a certain skillset, or simply don’t want to increase your wage budget to accommodate a relatively slow-growing element of your business, be open to using freelancers and contractors instead of employing in-house. Their fees may be slightly higher initially in comparison to PAYE, but you won’t need to worry about training them, purchasing equipment for them, paying their taxes for them, covering their sick leave, or making allowances for their holidays. Plus, you only pay for what they produce, meaning you have greater control over your spend.
Leverage free or low-cost marketing opportunities
Paying for advertising real estate with Google, Bing, Facebook, or LinkedIn is a great way to take your proposition to new audiences – but it’s not a cheap option. Until you have the resources to run a full-scale paid search campaign, build your following organically by creating interesting and engaging content that social media users will want to share.
This might involve thinking outside of the box, setting aside some time every week to work on your content strategy, and, of course, moving past any discomfort you might feel about putting yourself and your business ‘out there’ – but all the hard work will be worth it in terms of generating more visibility for your brand. You never know who might be watching your feed; your next biggest customer could be keeping a close eye on your digital output and waiting for the right time to get in contact.
You may also want to consider investing a small amount of cash into an ongoing SEO campaign. This will strengthen your presence in the organic search listings and make it easier for people to find you when they are using search terms that are relevant to what you offer.
Follow lead quality, not quantity
Lead volume is something of a vanity metric. Unless the right kinds of people are contacting you, and you have a high chance of converting them into a customer, you’re going to spend a lot of time and resources dealing with enquiries that don’t lead to any paid work.
Listen to your customers
If you’re not in regular, direct contact with the people who buy from you – and willing to listen to their feedback on your products or services – then you will struggle to retain their business and stay competitive in the wider market.
Ask for reviews on platforms such as Google, Feefo or or TrustPilot, and monitor responses to make sure you can quickly address any issues that have been flagged up by past or potential customers. You’ll gain important insights that will help you improve the way you do things, and you’ll also (hopefully) build a bank of positive endorsements online that will convince new prospects to partner with you.
Consider finance options
If you’re embarking on a more aggressive or time-sensitive growth strategy and need a cash injection, you could consider taking out a corporate loan. Alternatively, you could search for external investment. We recently provided more guidance on navigating the investment process here.
Government grants, vouchers and tax credits can also provide you with extra funds. Take a look at this article for more information and follow the links to see if you are eligible for any of the best-known schemes here in the UK.
How can an outsourced finance director support your growth?
It may seem counterintuitive to bring in professional help when you’re looking to save cash. However, asking for support from an outsourced FD can help you make better sense of the money that’s available to you and help you explore untapped opportunities for improving your finances, optimising your cash flow, and meeting your growth objectives.
You can bring a finance director into the fold on either an ad hoc or retainer basis, depending on your needs and circumstances. Speak to the team here at Dartcell today to learn more about the value our FDs can bring to ambitious businesses.