Growing a Startup on a Low Budget? Here Are 7 Tips for Success

It is not easy to start a business. Imagine how much harder it is to do so with little money? It’s truly a whole other level of hustle. 

However, plenty of start-ups were launched with hardly any capital. It is achievable to transform your humble beginnings into an empire (if you have the right plan and mentality).

If you are looking to create something great (without spending all your money), these seven tips will help you to do that.

1. Embrace DIY Marketing

Look, it is not like you can afford to bring on a top-of-the-line marketing agency in the current scenario. But that’s fine because all you need is the internet. From free social media to cheap design software, you can get anything you need.

Key Strategies for DIY Marketing

• Utilize free resources. Graphic design programs, website builders and email marketing platforms can provide basic startup tools..
• Tell them your story. People love the real thing. It is recommended to post your story about your start-up on Instagram, LinkedIn, or even on TikTok.
• Choose between organic vs. paid digital marketing. This approach is similar to what StoryBox recommends for startups. As an entrepreneur, are you best at organic social media, or can you create profitable ads? Figure this out and you can create a profitable growth strategy.

If you’re handling marketing yourself (or in-house), ensure that you are careful with how you spend your time and resources. The less capital you have, the more you’ll need to handle it amongst yourself and your small team. That’s why it’s important to explore creative solutions, and ZenBusiness shares low-cost advertising strategies to help small businesses maximize their marketing budgets.

2. Start Small and Scale Up

When it comes to a limited budget, it is advisable to start small. It is not always necessary to be for everyone, but for something. In one way or the other, what challenge are you solving? To whom are you solving it?

For example – let’s say an entrepreneur’s initial product was homemade granola bars, which she sold at farmer’s markets. Since she had no huge marketing funds to be used in promoting her product, her go-to-market strategy was to rely on personal marketing and the quality of her product. One year from the inception of the business, she is now supplying her products in regional grocery stores. She started small and did not overextend herself financially – as she would have in case she had targeted a larger market.

Opt for a minimalistic approach to your operations. Instead of buying equipment, rent one. Instead of having an office, work from home. Use a digital business card to streamline networking and reduce costs while maintaining a professional presence. Everything you save today is an opportunity to invest in your future.

3. Build a Community Around Your Brand

Now, what is the one thing that we don’t need money for? Building a community that revolves around your brand can be very effective in creating customer loyalty and growth that is not based on advertising. But how do you do it?

Tips for Building Community

• Engage directly. Comment on other people’s posts, field people’s inquiries, and participate in other forums. People appreciate it when brands interact with them.
• Offer value. Post tips, how-to’s, or even answers to common questions pertaining to your area of expertise. Explain to them why they should choose you and stay with you.
• Organize low-cost activities. They are virtual webinars and small meet-ups in your local environment, for example. They are cheap and provide a perfect platform for creating relationships.

This is because it is not about making a sale at the moment; it is about building trust over time.

4. Barter Your Skills

What do you have? Perhaps you excel in graphic design or you can write the most convincing content. Whatever it is, exchange it for what you require.

A web designer, for instance, might barter her services in social media and graphic design when she starts her freelance business. Another founder exchanges photography services for custom packaging design. 

Bartering is not only effective in avoiding the need to spend money but also helps one get the right connections.

You can also haggle with the suppliers as they may be willing to offer you discounts or other benefits if you are willing to make some concessions. Do not be shy – speak up and ask for what you require.

5. Test Ideas Before Going All In

Have you ever had to spend so much money on something only to see people reject it? Hurt, right? That’s why testing is so crucial.

This is where you create a basic landing page to help you understand the demand for your product before you invest in the inventory. Plus, according to HubSpot, using landing page software results in a 30% improvement in performance.

Spend some money on small ads. When launching a service, provide it to a few users at cheap rates so they can provide their feedback.

For instance, one startup sent out 50 trial boxes to test their subscription box concept. They used the feedback to improve their offering and avoid wasting time and resources on aspects that users didn’t even care about.

6. Prioritize Word-of-Mouth Marketing

It may be costly to spend on ads, but word of mouth is effective and it is not costlier. Marketing budgets may be constrained, but there is one thing that is always free – word of mouth. How to make people talk about your brand? Easy: Overdeliver. Every customer encounter should be viewed as an opportunity to wow the customer.

Customer service should always be taken to the next level by offering more than what is expected. Customers will definitely tell their friends about you because happy customers will spread the word.

If you happen to have a product that is rather peculiar or unique, that’s even better. It is always nice when people get excited to share something they found with their friends. Make it easier for them by motivating them to post their experiences on social media platforms or even coming up with a referral system.

7. Track Every Penny

If you are a young entrepreneur with a startup, then the most important lesson to learn is how to be economical. One can use QuickBooks or even a spreadsheet to monitor the money flow, entering every dollar that is earned as well as every dollar that is spent.

Learn to prioritize your spending – don’t spend on everything. Is this expense necessary at the moment? If not, then do not get it. It is better to not get a new software subscription than to lose all the money when one needs it.

Lastly, celebrate your accomplishments, even the smallest ones. Got your first paying customer? Good job, well done. Landed a partnership? Tell your friends (and flex a bit on social media). These moments help you to remember that you are in this for a reason.