Growing as a company doesn’t have to be a matter of sacrificing resources in one area to create greater working capital in another. With the proper research and forethought, you can grow your business organically and without the aid of bank loans from a traditional lender. At the end of the day, expansion is a matter of having the money to reinvest in your company, which isn’t always easy to come by. However, by making a few smart decisions, your small business may be able to streamline growth opportunities and become an even larger player in your field.
Here are four ways to grow your business without breaking the bank:
- Reconnect with previous clients
Perhaps you previously did work for a few clients that you’ve now lost touch with, or who no longer actively seek out your company’s work. This may not be a reflection on your services, but rather a matter of cost-savings on their end. Some contracts are only meant to be short-term agreements and once the job is finished there’s not an essential reason to continue the working relationship. However, just because the contract ended, doesn’t mean you can’t try to pitch your services to them once more.
In fact, you never know when a potential customer is seeking a particular service like maintenance or commercial landscaping if you don’t ask. If your previous work was done well and you still have a credible standing in the eyes of your clients, then you may be able to work out a deal to provide additional services at a discounted rate. This could be enough to entice a new business agreement, and afford your company an easy route into new work without having to fork over a lot of money to do so.
- Strengthen current business relationships
Whether it’s the purchase of new equipment or the implementation of new digital-friendly services, it’s worthwhile to draw from a well that’s already been tapped. Your current clients could be in need of additional help on certain projects or perhaps they’re not getting their money’s worth from a different vendor. This could be the time to position your company as a consistent and proven resource at the service of the client.
While doing such, you can pitch new services that will make the job easier. Plus, on top of the current work you’re doing, the added service can be provided at a lower rate compared to what a competitor may offer. You may have to hire a few more workers, but if the agreement is finalized, then you’ve already got the money available to do so.
- Stockpile cash savings
You may be wanting to break into a new market or expand your services into a new region. Doing so requires a lot of coordination and organization on your part to make the whole thing happen. Instead of focusing your time on daily work routines, your mind will be on new ventures, which means you could be overlooking your smaller budget matters. However, if you anticipate such a move, then you should stockpile as much savings as possible to make the transition smooth.
In addition, every dollar that’s put away to fund expansion is a dollar you don’t have to borrow from someone else. Prior to the relocation you should keep your company lean by finishing jobs on time and focusing on a few key high-profit areas. With the residual money left over, you can begin saving, which allows you to grow your business without having to pull money from other departments or accounts.
- Diversify offerings
Pushing your business into a new region doesn’t have to be the only way to expand your services, as you could be better suited to do so right at home. Simply diversifying what you’re offering to potential customers and taking advantage of weaknesses in the marketplace can be a key avenue of growth. You may be a small, niche company with limited services like roofing or demolition. However, it’s not too much of a jump to say your crew is also more than capable of completing similar tasks like tiling, exterior maintenance or remodeling.
Workers on your crew likely have some type of related experience with these services already, and you don’t need to purchase a ton of new expensive equipment. And since these jobs are all completed on the job site, you can pitch these expanded services to your client as a way to save them money instead of hiring an alternate crew. This can be a profitable way to grow your business without having to rethink entire strategies or overhaul current plans.
Along the way, you may need a short-term loan to help keep cash flow moving and give you that extra boost of funding you need. With a merchant cash advance or small business loan from National Funding, you can access credit quickly and conveniently.