If your business is in a cash crunch, it can be overwhelming. After all, you want to be able to grow as quickly as possible and scale, but without money, it can seem daunting. But luckily, you can achieve this if you know the right tips and tricks. It is crucial that you follow the right strategies though, so you avoid pitfalls and get the result you’re looking for. Here’s how:
If you find yourself wanting to scale but without the right amount of money, it’s time to go back to your sales. If you have great sales, you can get extra cash to do anything. However, sometimes you don’t even have the money you need to hire more salespeople. That is where the sales strategy of paying people, at least partially on commission, comes into play. A commission-heavy compensation package allows you only to pay them once they have generated revenue for your company, so you take no risks and can still grow quickly. Augment your compensation strategy with a professional marketing course to learn how to fill up your sales pipeline with a cornucopia of qualified leads.
Your website and app need servers in the cloud to serve people when they visit or use them. However, it can be expensive to prepay for this. That’s why AWS and other cloud hosting solutions are perfect. They allow you to grow and pay as you go, so you don’t come out of pocket before you need to.
You can leverage crowdfunding to get people from all over the world to contribute a small amount to your company. Offer them a special bonus if they give over a certain amount, and watch the donations come pouring in. Then, be sure to deliver on your promise so you can do more rounds in the future.
If you have a great idea for a product that is scalable, don’t be afraid to pre-sell it. You don’t even need it to be produced yet. You can leverage the fact that people are willing to wait for shipping and sell it to them in advance, then make one large order all at once.
Look outside of your current customer base if you need to expand. You might find that your local community can’t support a company of your size. However, the global economy that everyone lives in today means that you only need social media to reach your entire potential audience. Do market research and see where you might place your products in front of paying customers abroad.
Employees vs. Contractors
Employees take a lot of overhead to maintain. You have to pay for insurance, salaries, benefits, and an office. Freelancers and contractors are different. They pay their own taxes, insurance, and office supplies. That way, you can get the same amount of work but pay less so you’re getting more profits and scalability at the end of the day.
Low-rate Business Loans
I saved this one for last because loans are frequently the first place business owners go when trying to fund growth. Be careful here, because borrowing can strain cash flow later. Sometimes, you can qualify for a low-rate loan and benefit from a business line of credit without a huge interest obligation. It never hurts to do your research and try before ruling this option out. Compare interest rates with an easy loan calculator and make sure you’re not overpaying for credit.
Business requires cash flow. So if you’re light on that, it can be hard to grow. Luckily, there is a way to get the most out of your time and money and scale even if your bank account is not exactly overflowing. Use the tips above and watch as your company continues to grow in the right direction. Then sit back and relax as profits increase even more due to having more reach and customers.