We have talked to a lot of manufacturing businesses about their problems and goals. But there is one more problem that every SME faces. Many SME owners face the difficulty with growing their business but lack present resources or putting more precisely without any capital infusion.
In this guide, we show you how you can grow your manufacturing business without adding more capital. Yes, you can learn how to expand a small business without or with minimum borrowing.
Continue reading to explore 5 smart tips on how to grow a small business without spending money.
1. Monitor and Track your Cash Flow
If you are able to track the amount of money coming in and out in your business you are amongst a very few of small manufacturing businesses
Managing cash flow is not always a simple feat. It's important to regularly track the movement of funds in and out of your organization to determine the financial status of your business and what it will be in several months.
Without healthy cash flow, it's impossible to grow your business, hire new workers and properly manage your finances.
Here are a few business growth tips to get clients to pay on time:
- Offer discounts to clients who pay up-front.
- Keep track of pending payments and pursue them responsibly.
- Tighten your payment policy when onboarding a new client.
Read More - Ways To Improve Cashflow In SMEs During Pandemic
Using digital platforms like TranZact makes it easy to track your payables, receivables, and other expenses on a day-to-day basis. Having your inflows and outflows at your fingertips is crucial to make your business grow.
It gives you a clear picture of how to budget and better use the available finances in hand.
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2. Try To Maximize Profits
In business, it's difficult to find new ways to generate profit. It can only happen if you start a new product line. This will need capital.
So instead you might as well focus on how you can maximize profits in your present business.
Keep a track of all the products your business is manufacturing. This can be done by analyzing which product is most in-demand and gives the most profit. These products are called cash cows.
Try to identify the highest-profit-making products in your portfolio. Try to focus your efforts on expanding sales of these products via additional marketing.
This helps in boosting your profits, which you can then redirect to expanding your business.
Read More - Tackling Top 4 Sales Challenges In Indian SMEs
3. Use Your Customers' Network
If you’re wondering how to expand a small business, the answer is right in front of you. Yes, we’re talking about leveraging your existing clients to help you spread the word about your brand. It’s an easy and effective strategy to scale up. Here are a few ways to implement this strategy:
- Ask you are Happy Customers to Post a Review
- Provide your Customers with a Referral Code to Spread the Word
4. Establish Brand Authority
You need to focus on building brand authority. Authoritative brands are those that customers trust. These brands are the go-to source of information for any topic in their niche/industry. Spending time establishing your authority in your domain is crucial to business expansion. Only when customers trust your brand they are likely to spread the word about your brand in their circle. This helps in establishing the longevity of the brand.
- Be willing to share helpful information to customers via different channels like blog posts, FAQs, social media posts, tutorial videos, etc.
- Avoid delivering a sales pitch while sharing knowledge. This reduces the legibility of your brand. To avoid this, keep the sales pitches and knowledge sharing separate – preferably in different posts.
Growing a small business takes time, effort, and resources. Just because you can't invest more money on capital, it doesn't mean you have to put your business expansion dreams on hold. Explore the tips listed above and brainstorm creative ways on how to grow your business.
Remember that for any business to grow, you need to focus on streamlining daily operations like bookkeeping, inventory management, etc. Though these tasks may seem minor, they are essential to keep your business running like a well-oiled piece of machinery. Productivity in these areas makes a ton of difference to your business line. Apps like TranZact can help you streamline operations, inventory management, and other administrative tasks, freeing up your time to focus on core business practices and expansion.