Why Scaling Your Startup Doesn’t Need a Big Budget
Startups eventually grow, if run well like yours, and as such, they are going to need to scale upwards in order to meet the growing demands for the products and services.
This can be rather expensive, but that doesn’t need to stop your business from taking the next steps. Whether you don’t have much capital on hand or whether you’re expecting a slow season followed by great growth, your business can still scale upwards.
All it takes is a little bit of extra planning. Keep on reading in order to find out more.
Today’s Environment for Scaling Your Business
If you’re worried about your startup and how it might fit in expanding into its niche further, and also wondering how expensive it might be, consider the following:
- Many processes have been easily automated, some with heavy machines, but a great more online with apps that we might take for granted. Each industry, to at least some degree, has had advancements that save employees hours of time each day.
- Connectivity and online business has allowed not only consumers to get what they need, but businesses as well. Your business will not be limited by what is available locally in terms of either resources or talent.
- You have access to a nearly limitless amount of information, allowing you to make informed decisions if you put the time in to perform some research.
- Due to digital technology and changing ways in which people do work, businesses are less office-dependent, making scaling more a matter of simply personnel and product production.
Different businesses will require different budgets in order to start up properly, but the fact remains that it has never been easier to expand on a budget as today. Less people can do more work, less space is needed to provide service.
Methods for Successful Scaling at Minimal Cost
1. Automation
Automation is what makes companies efficient in the 21st century, and if there is a task at your startup, there is an app or program that can either at least partially automate it. Whether it is customer relations, product management, AI Marketing Copy Writing, or something else, it shouldn’t need your full attention. And these tools generally only have a one-time cost or a yearly licensing cost. If you use them more as a result of scaling upward, it won’t cost your business anything extra.
Partially automatic fulfillment services are an option for businesses worried about handling products, and web services are relatively cheap for companies that work online and need those resources. Furthermore, large service providers that can automate processes might be a bit expensive to some, but the scaling is natural and adaptive, making it the best choice for uncertain business owners.
2. Wise Use of Freelancers and Remote Workers
As you expand, you still won’t need a full-time staff member for every task that might come up, despite your potential worries. You could outsource your HR to a PEO if you have a bunch of employees (the costs generally get recouped by the time saved), use freelance designers and PR specialists only when necessary, and have similar specialists come in as needed. You should still maintain a great staff, but some roles are rarely needed until further expansion.
Additionally, you can make wise use of remote workers in order to reduce potential costs and find the very best people for the job. Computer-based tasks have become more common, and jobs which absolutely require an office presence are becoming rarer. By hiring a remote worker, you also will be able to save office space and money on relevant support supplies, delaying a potential move to a more expensive office. If your business only operates online, you can have an entirely remote staff and save a great deal, still scaling as necessary.
3. Bulk Discounts
While you can’t so easily create bulk discounts for yourself, you can take advantage of every opportunity that comes by through proper planning and great logistics work when you’re scaling up. If you know that you’re going to need a large amount of x product down the line, try to invest ahead of time and reap the savings over time. You’ll need to balance this with short-term needs, but the right call can make things much easier for your company.
On a related note, remember that you will be a greater organization by the end of the process, and have more negotiating power with some companies by extension. See if you qualify for a different pricing structure with some service providers, or try to negotiate for better prices with your suppliers (or find new suppliers that might be interested). In most cases, it can’t hurt your business to look for new opportunities.
4. Focusing Resource Use
With a smaller budget, you can’t do everything at once, and that’s ok. Your startup succeeded and your products succeeded for a few reasons, and if you determine and focus heavily on the root causes of your success, you’re likely to see continue results if you also focus on the additional needs of your company and employees and accommodate as necessary.
You should also note that your startup won’t always need to operate on a small budget. After focusing on the things that matter, the stabilizing forces in your company, and most importantly the revenue-generating aspects of your company (without sacrificing long-term potential in the process), you will be able to expand in other areas safely and without stress, supporting your business from all angles. Once again, proper planning and logistics will make the difference.
Conclusion
Once your startup shows promise, you don’t want any delay in taking your company to the next level. Yet this requires resources and a solid strategy. We hope that with the above analysis and tips, you now have more knowledge to guide your company for years to company. Don’t be afraid of the future, and remember that resources well-used can accomplish a great deal.
What is the situation looking like for your start up? Do you find different circumstances for your business, and are there any other strategies you would like to share? We would like to hear what you have to say, so please leave a comment below.
Bio: Kevin Conner is the founder and CEO of broadbandsearch.net, a digital services search engine. He’s founded several companies in his career and he particularly enjoys putting growth strategies together. He 100% believes there are options for all startups, no matter what their budget and hopes you will find these tips useful.