Every business owner aims to grow their business at least 5% annually, but with current economic downturn,is it still possible to expand on budget? The answer—definitely a yes. Cutting costs should never be a reason to delay extending that new office wing or increasing man power. Tight financial arrangements only imply that businessmen must make wiser financial decisions.
So, how do you grow a business on a budget? Let me walk you through the 3 simple steps that will make you realize that growth doesn’t always equal to a million dollar check.
First stop, financial planning. Of course, spending money is easy but putting it in the right place is always a challenge. Its vital to create a strategic plan that shows your priorities and budget for each point. This plan will then be the foundation for your business’ expansion. It will always be temptimg to spend more on things you think are “important”, but would you risk lowering funds for other areas just to give way to one? I bet; no. Remember, this is created for a reason so its important to stick to it through and through. To support this, you’ll also have to create financial tracker for monitoring the inflow and outflow of cash.
Second step, cut costs. Budgeting is a critical part of the business. In most companies, this helps establish the profit margin owners hope to reach. What defines ideal budgeting? Of course, following the plan is one. Another is to find ways on how to minimize the costs without jeopardizing the quality factor. This tactic can be applied not only on raw materials, goods and other material objects but also your workforce.
Ever since the rise of modern business, hiring in house personnel has been a practice. It’s effective and it gives business owners and company managers the power to lead over their staff on a direct physical level. However, we can’t deny the fact that despite its efficiency, it is expensive. Aside from salary, you’d have to deal with taxes, health benefits, allowances and other overhead costs.
To minimize workforce expenditures, why not try virtual assistant services? It’s a process of contracting an external staff, usually off shore, to do company assignments. Because of the low costs of living in their areas, outsourced virtual assistants demand for minimum rates; making it at least 50% cheaper than hiring in house. The only possible issue is in terms of communication. Being a thousand miles away certainly proves to be a challenge since you are unable to monitor your VA’s activities first hand. However, there are tools which make this less of a problem. Skype for example uses chat, voice and videocall. E-mail exchange is also a normal routine for outsourcing. In addition, some business owners opt to make use of remote access software to control and see through a VA’s desktop.
Once you’ve managed to lessen business expenses, its time to review your financial trackers. Why? Businesses are volatile and even small erratic expenses might cause future problem for the growth of your business. Monitor which points reflect positive and negative outcomes to your finances. Make sure to continue doing what you’ve found beneficial and adjust any unconstrutive areas. This will ensure that you are able to expand your business effectively without exceeding suggested budgets.
See? It really isn’t as difficult as it seems. Growth in business is possible as long as you maximize whatever budget you have while keeping to the company’s goals.