Funding, or rather the absence thereof, is one of the greatest obstacles for entrepreneurs in growing a business. First, we start a business without the necessary capital, and then deal with the challenge of funding the improvements.
This deters most aspiring entrepreneurs from starting a business, and those already in business feel despondent about growing the business.
How then is it possible to grow a business without funding?
Pricing – Is your price correct? Do not base this on how many customers have said “you’re expensive” or “I don’t have money to pay you”. The price for your products and services should cover the cost of making and delivering the product, the cost of being in business and it must include a profit (that money that is leftover once the customer pays the price to experience the product). Read more on pricing strategy in Business In Theory’s post)
Most entrepreneurs do not pay attention to the processes that support the business model. In fact, for the most part, entrepreneurs are not sure how they get by. Documenting business processes enables entrepreneurs to delegate tasks – you can recruit people to focus on some of the aspects of the business, creating time for you to focus on growing the business.
What is your operational plan? Without a vision for the business, how else will you lead? Entrepreneurs make the mistake of doubting the plan or giving in to the limitation of resources. With a plan, you can improve the processes and find partners to assist you to implement the plan.
Collaborate with complementary businesses. For instance, if you bake cakes, you can agree with local coffee shops to supply them with cake or they can display your cakes and business cards.
Last thing, what do you say to your customer? When asked what do you do? Give an answer that does not leave the next saying “huh, what’s that?”