In the UK, around 60% of small businesses fail within three years of launching. Every small business has to start somewhere, but in the early days it can be extremely tough to grow a company with limited resources.
Growth is important for small businesses as it helps reach a wider customer base, increase financial stability and importantly, stay competitive in the market. However, without sufficient funds, growing a business can seem like an impossible task. So, here are a few cost-effective ways to help expand your small business.
Utilising social media
According to Statistica, there were more than 5 billion active social media users worldwide in 2024, and this number is expected to increase to nearly 6 billion users by 2027.
Leveraging social media platforms such as Instagram and LinkedIn is an excellent way to build your brand awareness. Not only are these platforms free to use, but they allow you to engage with potential customers and reach a wider audience organically.
Compared to traditional marketing strategies, social media is an inexpensive way for small businesses to drive traffic to their websites, simply by adding links directly to your account profile, posts or stories.
Applying for a business grant
A business grant from the government can be extremely beneficial for a small business as it allows for the investment in the growth and development of the company, without having to repay it – unlike a business loan – which can be particularly useful if the business is in its infant years.
This money can be used to fund various elements that every business needs, including new equipment, marketing campaigns, research, training, or developing new products or services.
It’s important to note that a business has to match certain criteria in order to apply for this grant, so it’s important to research this beforehand to determine whether your business is eligible or not.
Reducing overhead costs
In order to free up capital to invest in your business, consider where you can reduce or even completely eliminate overheads. Since the pandemic, we’ve seen how working from home can be effective for many businesses, whilst reducing high fixed costs for an office or warehouse space.
If you’re running a small business from home but require more space, self storage can be a great solution for securely storing goods or equipment. A physical store or office can be expensive to run, however, renting a storage unit that’s flexible in size and contract length allows businesses to operate with reduced expenditure.
Engaging with customers
One of the most important things any business owner can do is create customer loyalty – whether that’s engaging with existing customers to encourage repeat business or targeting new ones.
Utilising tools like email marketing and customer loyalty programmes will help you stay connected with both new and existing customers at a relatively low cost – with research showing that members of such programmes typically spend around 12-18% more than non-members. This type of customer engagement can help make your small business more authentic and potentially lead to further referral and ultimately, more business.
Final thoughts
Overall, it can be challenging for small businesses to expand as they are already fighting many battles just to stay above water. However, by creating a loyal community using cost-effective methods such social media and reducing overheads where possible, small businesses have a much better chance of growth and success.
Author: Mehran Charania, Director of Ready Steady Store.
Established in 2005, Ready Steady Store is one of the fastest growing self storage providers with cost-effective storage units located in the Midlands, South, North and East of England.