Struggling in your business? You’re not alone. Inexperienced new business owners take actions that hurt the startup instead of helping it grow.
Business needs to grow strategically. Two things that actually hurt a business are too little funds and too much funds. Unfortunately, many startup owners are not only struggling with limited funds when sales and customers have not been established, but on top of that, misuse what little funds they have on expenses that don’t help the business grow, resulting in a money drain and inefficient results.
If you are a new business owner and are seeing a money drain in your business, here are 3 things you can do to fix the situation and put your business on the right track.
1. Outsource.
Paying regular salaries to employees might not be feasible for new businesses with low or irregular income. For this reason, you might want to hold onto only the most essential employees (or none at all) and outsource work to freelancers or independent contractors. This way, you can balance wages with revenues and sales and not be burdened with salaries when income isn’t coming in. Another saving from outsourcing is that you won’t need a large office space and can run your business from a small office, shared workspace, or even your home, resulting in rent savings. The cost savings can be put toward other more vital expenses that help grow your business and increase revenue.
2. Downsize.
New businesses tend to be overly optimistic and spend excessively such as on larger or more expensive office space. This can have a negative effect whether the level of sales is as expected or not. Unless you absolutely need a large warehouse or office to carry out operations, i.e. the extra expenditure is adding to your bottom line, downsize or even consider shared office space or work from home. Use the savings on other necessary costs such as product research & development and advertising & marketing.
3. Have a Generous Marketing Budget.
One thing that massively hinders business progress is not having a proper marketing strategy. People cannot buy from you if they don’t know about your business. And without customers there is hardly a business. For this reason, one of your main operational spending should be on marketing and advertising.
Hire a reliable marketing expert and or an expert marketing agency to do your marketing and run ads. Set an effective marketing strategy, considering your different options based on the type of business or product you have. For example, you might collaborate with local businesses, restaurants, schools etc. to market your product. The marketing can be paid upfront or on commission basis. Or you might advertise in niche / industry publications or other offline traditional advertising venues (newspapers, billboards, etc.). Or use online advertising such as Facebook or Google ads, influencer marketing, affiliate marketing, etc. Depending on your business and budget, you may use one or more of these advertising channels, and focus on those that are likely to deliver the best results on your advertising spending.
Use these three tips to streamline your business, save costs, and increase market reach and sales.
Need help making your business more efficient? Email solutions@radeya.biz to learn how we can help your business or use the following link to schedule a call: https://calendly.com/kokab/
