Running a business can be exceptionally difficult in today’s economy. It’s hard enough to get a loan, but even more of a pain to keep excessive costs down. Bearing this in mind, you shouldn’t allow your budget to get in the way of your ability to reach your goals, especially if you have the knowledge and drive it takes to push a business in a forward direction no matter what the scenario.
There are several low-budget business strategies that can help your company turn a profit each year or at least stay out of the red. Learning how to integrate them into your business plan is an essential part of seeing growth in the coming months and years, and it doesn’t have to be difficult to do so.
Carve Out a Niche
Companies that offer products and services similar to others being offered in the same area often have a hard time breaking through in the marketplace. Usually, doing so requires one to spend a great deal of money on marketing in order to simply get noticed, which is certainly not an option for companies operating off of a shoestring budget.
One of the best ways to avoid this conundrum is to carve out a unique niche in your industry. Take Allegiant Airlines, for example, a company that seeks out routes ignored by other airlines, thus creating their own unique selling point. “Its almost akin to having a monopoly,” says luxury air merchandise Entrepreneur Benny Klepach, and he makes a very good point.
Always Focus on ROI
ROI (or “Return On Investment”) is everything for start-up businesses, as turning a profit is the only way to push forward. Delegating the spending of your company’s money can certainly be tricky, but one thing you should always focus on is ensuring that the money you put into your business is at least somewhat likely to offer you a higher return.
Commonly thought of as spending a nickel to make a dime, ROI is essential to pay attention to not only during the early stages of a business’s life cycle, but consistently throughout the years. Don’t forget that this concept applies to staffing as well. If you’re not getting what you feel you should be out of an employee, you may need to find someone else to take on the job.
Operate as Lean as Possible
The costs associated with simply keeping a business afloat can be staggering at times. After all, you’ve got utilities to pay for, as well as upfront costs for whatever materials you may need and a wide range of other expenses that can amount to an overwhelming sum of money on a monthly basis.
Keeping your operations as lean as possible is the only way to run a business on a shoestring budget. If you don’t, you run the risk of going into debt at an alarmingly-fast pace. Look for low-rent office space, staff a bare minimum of employees and don’t waste money on superfluous items like fancy furniture and expensive signage. The leaner you can run, the more likely it is you’ll turn a profit.
There are certainly a fair amount of constraints that come along with running a business on a tight budget, but if you’re careful with your spending it shouldn’t cause nearly as many headaches as it might otherwise.
Article contributed by Jenna Smith
