How to Grow Your Small Business: 10 Tips to Help You Scale Without the Spend

Rarely do the things we set out to accomplish in this life remain exactly the same as when we first set out to do it. Growth is inevitable—we just want it to be the good kind. When it comes to small business life and deciding whether or not to remain the same or scale, there are a lot of factors involved before charting a new course. Often, small business owners need to ask themselves whether it’s time to grow. Even if it is, how do you know? And what are the tools you’ll need to get through it? Not only that, any type of business—from small to IPO—considers the financial factors involved. Is the investment worth it? Ahead, we’ll give you the inside scoop on all things related to small business growth, including a few very important tools you can use to actually grow your business without having to spend a small fortune.

Why Would You Want to Grow Your Small Business?

The definition of success is very different for every business, and the outcome even more so. One business may have revenue goals as its success marker, while another may see community impact as its key achievement. The success of your small business is a key sign that you might want to grow your business. Of course, there are other factors that also go into that decision. Why you’d want to grow your small business at all comes down to very similar basics: demand, profit, longevity.

Demand

If you have customers coming to your business for a specific product or service, but you find that you’re unable to meet an increase in demand, you may consider growth to accommodate. This could look like growing physical space, like retail, or increasing the amount of product you need to have on hand to sell to customers. It could also look like hiring more employees to accommodate an influx of buyers. Perhaps the idea of satisfying your current customer base, while knowing you’re able to reach new customers, is enough for you.

Profit

Hand-in-hand with demand is profit. Small businesses reaching profit or exceeding profit goals may want to alter those goals to accommodate. If a business knows that it can easily reach such profit goals, then it may be time to consider expansion to see if they can grow even more.

Longevity

Most, not not all small businesses may want to be around for a long time. Think a mom-and-pop shop with no one to pass it down to: they may want to sell the business when they reach a certain age, but they don't have the energy or know-how into building it more for a bigger sale. How long you want your business to exist, particularly at each phase of growth or for customer demand, becomes a key factor in conversations around scaling and expansion.

Is Your Small Business Ready for the Growth Phase?

Running a small business can keep you busy enough. Trying to figure out if you’re ready to grow while doing all of that may seem like a lot. We’ve got you covered. Here, we’ve broken down key factors for you to use as a checklist for your business’s growth readiness.

Team growth

Hiring additional employees and keeping your business efficiently staffed is a clear indication that your small business is ready for its growth. How much your team has grown is dependent on your business. If you were a business of one, and now you need at least four or five of you to manage day-to-day operations— and still you could use more—that’s a significant increase signaling that it may be time for overall growth.

Unable to handle demand

Have you found an increase in customer demand for what your business offers, but you can’t accommodate everyone, leaving them frustrated or bummed out? Customer satisfaction is a massive part of any business, and having them leave out of disappointment isn't ideal. Being in this position is helpful because you know that buyers are there, and they want to be part of what you sell. Let this guide you towards preparing for growing the business.

Lots of cash and financial stability

Increased revenue is always going to be the clearest numerical indicator your business is ready to grow. Having a lot of extra cash isn’t the best reason to grow—it also comes down to other financial factors because growth does involve spending some (or at least more) money.

Meeting or exceeding existing business goals

Profit will tell you that you’re meeting your business goals (or not.) With an increase in cash revenue into your business, you may be meeting or exceeding the business goals you first set out with when you began your path of entrepreneurship. Business goals evolve over time in any case. Look for patterns in your goals, where they are being met or exceeded, and take note of how adjusting them in pursuit of overall growth impacts other parts of the business.

Outgrowing space or resources

If you’ve ever been in a packed stockroom with no place to even think, consider this in your growth checklist. All of these aforementioned factors from demand to profit to team growth will impact how much product you’re bringing in and if you are resourced enough to fulfill customer needs.

You know you’re ready

There’s nothing quite like good ol’ intuition to guide you in this life—and business. Follow that same impulse that began as a thought or a need to start a business. A similar feeling or sentiment may arise when it comes to growth. When you’re ready to grow, you’ll know.

10 Ways to Affordably Grow your Business

Alright: you're ready to grow your business. You’ve got the customers, your team is ready to support you, and you've done the math. But there’s one thing lingering in the back of your mind: do you really need to spend a fortune to grow your business? Business growth doesn’t need to hinge on using capital or your financial resources. There are a lot of ways to effectively grow your business with your existing infrastructure and not make your bank account sad. Below are 10 tips to consider for affordably and smartly growing your business.

1. Start with a business plan for growth

There are a lot of tips from here on out that you can use to grow your business. But does that mean you should use all of them? Of course not. Small business growth depends on a specific set of factors for each business. Trying everything could mean you end up with nothing. Start at the beginning: create a business plan for your intended growth. Go back to your original business plan, with your original business goals, and draft a side-by-side comparison list of where you were and what you need to do for where you want to go. Strategy is crucial for growth execution. Without knowing what you want for business growth, you could end up testing or iterating in a way that counters the growth goals of your business.

2. Do your research

Make informed decisions on the shape of your business’s growth. Do an abundance of research. Read articles, listen to podcasts, look up trend forecasts for your industry or the year ahead, talk to business owners who were in a similar position. Reaching out to your community of small business owners is a great way to find any blind spots in growth spending. Some may have unfortunately gone through that, but can be a great guide for you to avoid. Data collection is extremely helpful in order to make sure you’re not spending too much on growth if you don’t need to.

3. Nurture your existing clients and customer base

Keeping your existing customers and clients happy is the easiest way to grow your business without spending a lot of money. Retention is often underrated when pursuing growth. You don’t need to leave behind those who supported you from the start while courting new buyers or clients. Nurture your customers and clients at all touchpoints as a low-cost way to help your business grow.

4. Use social media

Every business needs to have some kind of social media presence. It’s simply the way of the world now! How you use social media, on the other hand, is another thing. Businesses can create their own content and tap into the engagement side of social media for brand awareness, product information, and customer service. And you really don’t need to drop any money on being able to effectively and efficiently respond to customers on Instagram. This is one of the simplest and most cost-effective methods of growing your brand. There are tools that, if you’re ready to later on, can help with social media growth but for the most part you can do it all through organic traffic on your own. Be responsive, creative, and post often to keep customers engaged online.

5. Automate task and time-consuming processes

Can you replace time spent doing manual tasks with automation? Imagine freeing up your time, or another employee’s, by automating some of the most grueling, time-consuming to-do items in your schedule. Investing in technologies and systems that can free up your time elsewhere, saving money in one area, will definitely help in your growth efforts. Think about all that you could do if you had a tool like Homebase to schedule your employees’ shifts for you, keep track of their hours for wages and pay, and file taxes on your behalf. There are a number of tools available for small businesses that are growth-friendly and won’t break the bank.

6. Consider strategic partnerships with other business owners and influencers

Strategic partnerships are one of the easiest ways to help grow your business, and reach new customers or clients, is to partner with other business owners, or even influencers. Do your research on businesses or individuals in your industry that might want to be part of your partnership. Reach out to influencers on social media if you think they would be a great brand ambassador for your product or business.

7. Incentivize customer referrals

Let your customers be your greatest brand ambassadors. Happy customers will tell other people about why your business rules. You can even incentivize them by providing small discounts on their next purchase if they refer someone to your business.

8. Invest in corporate social responsibility and sustainability

Today’s buyers are very invested in corporate social responsibilities and sustainability. For example, in a joint McKinsey and NielsenIQ study on sustainability claims, businesses with such claims had a 28% growth over the past five years versus those that didn’t. If you show that you’re also invested in these issues, this can help your business’s growth. Your business may not be at the stage to invest in these in a big, financial way, but that doesn’t mean you can’t help your community or the planet at-large. Become a spot for donations for clothing to take to a secondhand shop or food for unhoused folks that you take to another community spot. Encourage your customers to bring reusable bags, and have those available to buy if they don’t have one on hand. These small steps toward sustainable living can have a big impact on your customers, and how your business grows.

9. Deliver superior customer or client service

It usually goes without saying that customer or client service is the key to a business’s survival but we’re going to make a point of it here. Your customers are your greatest advocates. Word-of-mouth support is still very crucial. Make customer or client service a priority for you and your employees. This often means using soft skills, and creating a personalized, special experience for your customers. No money needs to be involved to ensure you’re meeting your customers' needs.

10. Measure success of your business plan often

Go back to the beginning—again. Look at your growth business plan often. Ensure you have the right benchmarks for growth and see if you’re meeting them, or where you may be falling short. If you’ve freed up time in other parts of your business, without spending any money to do so, this is another cost-effective way to stay on top of your growth.

How to Know if Your Small Business is Ready for Growth

Deciding whether to take the leap and expand your small business is a big decision. Before embarking on growth, consider these key indicators: Are you consistently exceeding your business goals? Is demand for your product or service outpacing your current capacity? Do you have a strong team in place and the financial stability to support expansion? If you answered 'yes' to these questions, it might be the right time to explore growth strategies.

Financial Indicators of Small Business Growth

• Consistent Exceeding of Business Goals: Regularly surpassing set business targets can indicate effective strategies and potential for growth.
• Demand Outpacing Capacity: When customer demand exceeds current business capacity, it suggests market growth opportunities.
• Strong Team and Financial Stability: A robust team and stable finances provide a solid foundation for expansion.

Tips for Small Business Expansion

• Create a Detailed Growth Plan: Outline clear goals and strategies for growth.
• Nurture Existing Customers: Customer loyalty is a valuable asset for business growth.
• Leverage Social Media: Use social media for organic reach and customer engagement.
• Strategic Partnerships: Collaborate with complementary businesses or influencers to access new audiences.
• Prioritize Customer Service: Excellent service is crucial for customer retention and positive referrals.

Current Trends and Challenges for Small Businesses

In the last three years, there's been a notable increase in new entrepreneurs, particularly among women, Latinos, and Black Americans, with over 16 million new business applications filed. This surge is likely to continue, supported by advancements in technology, changes in work preferences, and encouraging government policies. Small businesses are increasingly focusing on a digital-first approach, especially after the pandemic pushed them to improve their online presence, e-commerce, and digital marketing efforts to serve their customers better and widen their market. Additionally, these businesses are paying more attention to sustainability and community involvement because consumers are showing a preference for environmentally friendly products and local initiatives. On the flip side, small businesses are navigating through challenges like economic fluctuations, rising inflation, and disruptions in the supply chain. Managing finances effectively and planning strategically are essential for survival. Finding financing is becoming tougher, as traditional loans are not as accessible, leading businesses to explore SBA loans, crowdfunding, and fintech options. Attracting and retaining skilled workers is also a hurdle, requiring businesses to enhance work conditions, offer more flexibility, and provide competitive compensation. In the industry landscape, healthcare and technology sectors are experiencing growth, driven by an aging population and the increasing importance of technology in both business operations and everyday life. The retail and hospitality industries are evolving to meet new consumer behaviors, such as a preference for online shopping and desires for unique, personalized experiences.

Real-world Examples of Companies Implementing Best Practices

Market Penetration Strategy

Zappos changed the game by prioritizing what you care about: top-notch customer service, free shipping both ways, and a huge selection of shoes. By focusing on making your shopping experience better, they managed to stand out and outperform their rivals.

Market Development Strategy

Ever heard of Chubbies? They’re all about casual shorts. They got clever and reached out to college students by teaming up with sororities and fraternities, making their brand a staple on campuses all over the US. It’s how they tapped into a younger audience.

Product Development Strategy

Chuao Chocolatier isn’t your average chocolate maker. They mixed things up with wild flavors like maple bacon and potato chip, setting their chocolates apart. This creativity didn’t just get people talking—it also boosted their sales.

Diversification Strategy

Burt’s Bees started small, with beeswax candles, but they didn’t stop there. They branched out into a whole range of natural personal care items, from lip balms to lotions, which propelled their growth.

Strategic Alliance Strategy

Ben & Jerry’s knows the value of a good partnership. By teaming up with household names, like Late Night with Seth Meyers, to create special edition flavors, they’ve managed to reach new fans.

Pricing Strategy

Costco’s approach is simple but effective: keep prices low by buying in bulk and maintaining slim profit margins. This strategy has helped them become a go-to shopping destination for many.

Acquisition Strategy

Olly made a bold move by acquiring Vitamin Packs. This wasn’t just about getting bigger—it was about offering you more choices and broadening their customer base, all in one fell swoop, accelerating their growth.

What Tools do you Need to Grow Your Small Business?

Homebase is the perfect tool to help you grow your small business. Built for small business needs, Homebase has you covered to help you automate tasks, scheduling, payroll, compliance, and more—freeing up your time for other business growth tasks. Homebase integrates with other tools like payroll software, POS, job boards, and more. Connect to your employees with ease, and manage all things HR and compliance related with efficiency. Your administrative tasks don’t need to bog your efforts for growth. Manage new employees with streamlined hiring, onboarding, and scheduling. Keep teams happy with perks, so they can keep your customers happy. Try Homebase today.