Startup entrepreneurs should be aware of the risks involved starting their own business. Money plays a big role in the success or failure of a startup. In fact, 90% of startup entrepreneurs are expected to fail. But does this mean that you shouldn’t chase after your dream?
There are simple, yet cost-effective measures that low budget startups could adapt in their business practices. Here are some effective low budget hacks that entrepreneurs could start to implement.
1. Build a solid content online
Quality content makes a huge difference on how a company is perceived online. Content has been considered the king for quite a while, and there’s no sign of it changing soon. Low budget startup entrepreneurs should start investing on an effective content strategy to get the attention of their niche.
This simple, yet effective strategy has been proven to build a company’s reputation. It can also potentially increase your conversion, while attracting the right people.
Is it cheap? Hiring content creators may not be as cheap as you expect. Big companies are even willing to pay $100 or more for high quality content. For low budget startup entrepreneurs, they could start building their own content. Using tools such as Grammarly.com, the content can be proofread even without the help of a professional copywriter/editor. If not, they can hire online freelance writers to get the job done. Freelancers offer a budget friendly solution to this type of concern.
2. Delegate the simple and mundane tasks
It is a common mistake by startup entrepreneurs to micromanage and perform mundane tasks. Startup entrepreneurs could save more money if they focus on the more important tasks in their company.
So who should cover the simple and mundane tasks? If you don’t have the money to hire new employees, you can start having a virtual assistant to get things done. For some businesses, they also allow on-the-job trainees to be part of their organization. On-the-job trainees are young college graduates or students who are trying to gain experience in a relevant industry.
3. Invest on a modern and responsive website
Whether or not you have an office or a physical store, it is imperative to have a modern and responsive website for your startup company.
A responsive design allows the user to have an optimized view of the website in different devices. This type of design responds to the viewing space that is available.
Now that 48% of mobile users start using the internet on search engines, Google has decided to adapt its algorithm to this trend. Aside from providing superb user experience, responsive websites are given an edge on Google. This type of design increases the chance of landing on the first search result page.
4. Study the industry/market well
As rule of thumb, every startup entrepreneur should never get into something that they don’t know. Investing in an unknown niche increases the risk of failing.
Market research is something that businesses of all sizes shouldn’t forget. By performing a study in your industry and market, you’ll be able to determine the startup’s potential. Is there a demand? Who are our competitors? Is the market already saturated?
5. Branding consistency
Branding is your key to be easily recognized by your audience. An effective branding strategy can help get the message across effectively. Small businesses should be able to understand the value of using consistent designs. Branding isn’t just your logo. Branding is also about the voice, colors, fonts, and even your website’s layout.
6. Develop a social media marketing strategy
Social media has leveled the playing field for a lot of businesses. Even small businesses have been able to get the same exposure as their larger counterparts, thanks to the use of social media. And the good part is that it can be used for free.
With over billions of accounts floating around in different platforms, social media should never be ignored especially by small entrepreneurs. According to one study, consumers tend to buy products from brands they follow (64% of Twitter users and 51% of Facebook users).
But of course, not all social media campaigns can yield positive results. To maximize the reach and engagement, it is crucial to learn some effective social media marketing strategies. This includes establishing the right type of voice to balancing the promotional and non-promotional posts.
And of course, you have to understand that the social media platform algorithms are also changing. It has been a concern among social media managers when Facebook changed the way people see posts from pages.
The average reach of Facebook publishers in 2015 is only at 2.27%. On the other hand, in 2012, publishers organically reach 16% of their fans. This only means that small businesses should also consider sponsored posts, to help boost their reach. But more importantly, it is imperative to reevaluate the content shared on social media.
7. Take the customer feedback seriously
You may have heard Steve Jobs downplay customer feedback saying that customers have no idea of what they want until they have seen it. But for startup entrepreneurs, keep in mind that word-of-mouth advertising is still among the most effective means of advertising.
Word-of-mouth advertising can either help or destroy your business. For a virtually unknown brand, it is crucial to get as many people to recommend your products or services. In fact, 84% of consumers say that they trust recommendations of either friends or family when it comes to products. Same is true for online opinion made by consumers.
So what should you do if you are faced with a negative feedback online? This is where startups need to have a protocol on how to manage negative comments and reviews.
Every startup entrepreneur should consider the numbers. Analytics provide startups a reality check, whether or not they are doing the right thing. For starters, check the social media’s engagement, and reach. Compare which posts have the highest reach and engagement.
Next, look at your site’s traffic. Are you hitting the expected number of visitors? If the numbers are met, are you really hitting the demographic? For local businesses for instance, it is important that the searches come from the area where they operate.
Becoming a startup entrepreneur can be a struggle. The lack of capital can definitely play a major role how your business operates. But the lack of funds doesn’t mean that you should forget about your dream. Today, there are many ways on how you can run your business even if you only have minimal funds. It is about how you make use of your available resources to your advantage as a startup.