Starting a business is exciting, but it can also be financially daunting. Financial pressures are one of the main reasons many entrepreneurs are afraid to get started and why almost half of new stawrtups fail in the first three years.
This is an intimidating statistic to hear if you’re dreaming of becoming a business owner or you’ve just formed a company. However, the UK’s best company formation agent, Rapid Formations, is here to turn that around. They’ll explore low-cost, effective ways to scale your small business without a large investment.
Use Low-Cost Digital Tools
Digital tools are a business essential. Whether it’s marketing, design, or customer engagement, it’s difficult for a company to evolve without access to these vital tools.
Some digital tools can be costly, but there are more affordable options than you might think – and some are free. There are also countless providers to choose from, so it’s crucial to research the best value options for your business needs.
Here are some of our top recommendations:
Google Business
A Google Business Profile is a one-stop shop for customers looking for local businesses on Google. It displays key details, such as the business address and contact information, reviews, and opening hours in one convenient place.
This powerful digital tool allows small businesses to expand their brand awareness and search engine rankings. And best of all – it’s free.
Canva
Canva is like Photoshop but more user-friendly and easier to learn. It’s an excellent digital tool for small businesses wanting to scale their branding and design strategies.
The free plan offers hundreds of free templates, millions of stock photos and graphics, and AI-generated writing and designs, which you may find is more than enough for a small business.
If you need additional features, the Canva Teams plan costs just £90 per year and has more storage and broader editing abilities.
SEMRush Keyword Magic Tool
Small businesses wanting to scale using search engine optimization (SEO) need the free SEMRush Keyword Magic Tool. You can search by country, search intent, volume, cost-per-click (CPC), and more.
By discovering the keywords to target, you can optimize your digital content, boost your search engine rankings, and scale your small business strategically.
Adopt Cost-Efficient Practices
When scaling a small business, it’s possible to be frugal without sacrificing growth. Here are some simple ways to cut back and maximize your resources:
Work From Home
Commercial rent and utility bills are some of a business’s biggest outgoings, amounting to thousands of pounds a year. In London, for instance, K2 Space reports that prime rents in zone one are around £87.50 per square foot.
Additionally, Utility Bidder estimates that small businesses pay between £2,367 and £3,600 a year for electricity and between £820 and £1,458 a year for gas.
An excellent way to save on those costs is to work from home. That way, your rent or mortgage bill remains the same. Your energy bills will naturally increase a little as you use more energy, but you can claim the business portion as tax relief in your annual Self-assessment tax return.
Outsource Strategically
Hiring in-house staff is a considerable expense for a small business. However, you can free up more funds by outsourcing certain operations.
For example, partner with a company formation agent like Rapid Formations for all your compliance and company secretarial services. They’ll take care of everything from filing confirmation statements to preparing your company’s statutory registers, saving you money and freeing you up to focus on scaling your business.
Also, consider hiring freelancers for one-off projects. Interns and apprentices are another inexpensive alternative.
Negotiate
Negotiation is standard in business. Don’t be afraid to ask questions and make counteroffers to help bring your costs down.
Successful negotiation requires a rapport, so it’s worth putting in the legwork to build strong relationships with others. Research is also essential to ensure you’re well-informed and prepared for fair negotiations.
Remember that bargaining might not always go to plan. Be prepared to say no and walk away if needed. But if approached correctly, negotiating can save you money, which you can re-invest in scaling your business.
Automate Manual Tasks
Reducing manual work is key to scaling a business. That’s why automation is essential.
Some small business owners remain skeptical about using artificial intelligence (AI), fearing it’s too complicated or costly. However, there are numerous options to make your business run more efficiently, such as:
- Hootsuite – A top-rated social media scheduling tool. Free and low-cost plans are available.
- Mailchimp and HubSpot – Two of the best email marketing platforms with generative AI tools to help you effortlessly create on-brand content and automate email marketing campaigns. Both tools offer free trials.
- Trello – A popular project planning app that simplifies project workflow and team collaboration. Apply your own automation rules for a tailored experience. A free plan is available.
- Chatbots – Automate the customer experience with AI assistants. They can answer common queries, direct customers to self-help resources, and route messages to the most suitable teams.
If you’re unfamiliar with AI, it can feel intimidating, especially because it’s evolving so rapidly. However, becoming comfortable with and trusting automation is crucial when scaling a small business. This will reduce repetitive, manual tasks and free you and your teams up to focus on productivity and growth.
Offer Exceptional Customer Service
It’s easy to overlook customer service when scaling a business, but exceptional support strengthens a brand’s reputation, which can significantly impact business growth – not to mention it doesn’t cost anything.
Here’s how you can enhance customer experience without increasing costs:
- Prioritise customer satisfaction: Customers expect instant responses, personalized interactions, and omnichannel support. Focus on these key elements to build long-term trust and loyalty.
- Encourage referrals: Referrals are excellent for raising brand awareness and growing your customer base. Implement a simple referral scheme that rewards customers for introducing your business to others. A free item or discount for new joiners is a low-cost reward option.
- Engage with customers: Actively respond to comments, messages, and reviews on social media and other platforms to build strong relationships.
- Look after your teams: Customer service isn’t just about customers. It’s important to trust and reward your staff, treat them with respect, and value their well-being. Happy and healthy employees radiate positivity when interacting with customers.
High-quality customer service should be one of your top priorities when scaling a small business. It doesn’t cost much to implement and establishes trust, an essential part of sustainable growth.
In Summary
Scaling a small business doesn’t have to cost the earth. With some frugality and efficiency, a little can go a long way.
We recommend making the most of free and low-cost digital tools, working from home, outsourcing to reduce your regular expenses, automating repetitive tasks, and prioritizing customer service.
For help scaling your small business, contact the company registration experts at Rapid Formations. They offer a wide range of compliance services and helpful resources that make running and growing a small business easier.
