There are many ways to fund business growth – how do you choose the right one for you? Use our blog series to understand your options and the advantages and disadvantages of each method.
Part 1: Clean Up Your House
Before exploring finance for business growth, it is good sense to check whether you already have access to cash in-house. Review each and every cost for savings, including:
Employees are a large cost – salaries, benefits, insurance and office space. Keep full-time staff to a minimum and outsource work to contractors or use temporary staff as needed.
Don’t replace leavers immediately – ambitious staff may pick up their duties with encouragement.
Map out a ‘model week’ for each role to ensure staff understand productivity expectations and processes.
Hire sales staff on a basic salary plus commission structure, to motivate them and to tie extra business outgoings to additional income.
Consider where automation can streamline mundane tasks.
Let executives book their own meetings and travel, or use a travel management company to save time and money.
Ask staff to suggest cost cutting ideas and projects. They may have clever ideas from their experience, and it will establish a culture of financial awareness.
Hire smart, inexperienced staff at entry-level salary, who are up-to-date with technology and keen to prove themselves.
Consider cutting down employee hours – some staff may prefer a four-day work week for a better work/life balance.
Other staff may value perks such as home-working, flexible hours, 2 unpaid days off per month, free social events, shared Spotify and Netflix accounts, employee discounts. This can lead to improved employee engagement and productivity, whilst reducing office overheads.
Retain high performers. Although it means investment in people, it avoids the cost and time of hiring and training new people and possible negative effects on team culture and energy.
Consider offering small amounts of equity to valuable employees to enhance their remuneration packages.This also promotes loyalty and aligns their interests with business success.
Identify peak times in business and cover them with parents seeking a few hours work during school hours.
Job posting sites and recruitment agencies are expensive and swamp you with applicants. Instead, post jobs on your social media channels and local university career centre portals
Cross-train staff to reduce boredom from repetitive tasks and add flexibility to your operation.
For simple admin tasks approach local career centres and colleges for students looking for internships to gain work experience. You might discover a gem!