How To Expand Your Business On A Budget

Many of us operate under the false impression that starting a business costs big. Small business owners take out loans, remortgage their houses, and all sorts of crazy steps. But, that’s not always the best way to operate. There’s no point taking financial risks like these before you know your profit margins. The last thing you want is to find yourself in debt when you have a business to worry about.

The good news is, it’s possible to develop a great business by utilizing frugal entrepreneurship. We’ve spoken a lot about how to keep costs down when you’re starting out. If you’re smart and keep things small until you see a profit, you shouldn’t have to pay out much. But, a cheap start isn’t the only thing you need to worry about. What happens when your business starts to grow? The sad fact is that growth in operations often means growth in costs. But, as with start ups, it doesn’t have to be that way. We’re going to look at a few ways to keep costs small, even as your business gets bigger.

Don’t Run Before You Can Walk 

Business growth is exciting. This is the moment all you’ve been working towards. But, it’s important not to get carried away when expanding. You still need to work within your means. Make sure you have a fair idea of profit and consider how much money you have to play with. You may want to hire a new crop of staff, but can you afford it? Growth doesn’t mean you’ve made it big, it’s just a natural step in business. So, make sure to keep your feet on the ground and your head in the game.

Settle For Second-Hand Where Possible 

With expansion comes the need for equipment. And that business equipment can be expensive. As you grow, customers will expect the best service possible. And, it won’t be possible to provide that if you’re not operating the same equipment as your rivals. 

But, you can cut the costs by shopping second-hand. You may want to rush out and buy the top equipment, but it’s not worth it. For now, second-hand will suffice. If you’re running an office, look online for decent recycled computers. If construction is your game, used heavy cranes are your best bet. Even retailers can take advantage of this by buying tills and storage units from closing shops. 

Rent Your Business Space 

Your business space is, without a doubt, the largest cost you’ll face. And, that applies whether you buy or rent. But, buying a business space at this early stage would be foolish. At the moment, your profits aren’t where they could be. And, you haven’t finished expanding by any means. So, don’t jump in and buy a space when you aren’t ready. Rent for the time being, and see how things progress. You can invest in a space in the future when your business is established. For now, you would only be tying yourself down, which will cost in the long run.

I hope you enjoyed this article about growing your business without burning a hole in your pocket or bank account. 

Interested in more articles about business growth?

Read My Posts:

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Published by Michael J Schiemer
Owner of Bootstrap Business
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