Five tips to grow your business on a shoestring budget in the new financial year

Despite the challenges Australia’s startups, small businesses and entrepreneurs have faced over the last two years, the enduring themes are resilience, adaptability and innovation. Today offers more stability than at any stage since the pandemic began, allowing businesses to once again think about long-term success rather than short-term survival.

However, challenges remain. In the new financial year, many startups and local businesses will face a tax bill at a time when they’re also eager to grow post-pandemic. Paying off a tax bill doesn’t have to come at the expense of growing your business, though. At previously Google and now Podium, I’ve had the privilege of working with thousands of local businesses, watching first hand as they’ve turned small budgets into successful, growing and sustainable businesses.

Here are a few cost-effective, scalable ways to grow your business without breaking the bank in the new financial year.

How to grow your business in the new financial year

1. Set your budget

   However you plan to grow, it’s imperative to understand how much capital you have at your disposal. According to the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) four in 10 small businesses fail, while the University of Technology Sydney found that financial mismanagement is a primary cause. Don’t fall victim through failure to budget.

   Your budget helps you determine how much money you have to invest in growth without losing sight of non-negotiables like rent, wages and, of course, a tax bill. When determining your budget, try to prioritise expenses that help drive sales growth, product development or directly contribute to your goals for the year. But remember to leave yourself a rainy day fund in case of emergencies.

2. Embrace automation

   Let the new financial year be your signal to work smarter not harder by automating time-consuming, non-revenue-generating tasks. Technology that automates admin-heavy or behind-the-scenes processes like data input or digital marketing frees up your time to enhance your customer experience, invest in research and development or drive other revenue-generating tasks.

   Automation also helps streamline the number of platforms you use. Rather than investing in multiple different apps — which can be costly, hard to master and create business silos — use software that carries out many functions.

3. Retention and acquisition

   It can cost anywhere from five to seven times more to acquire a new customer than it does to retain an existing one. Customers who have a positive experience with a brand will remain a customer for nearly two years longer and provide over 300% more value. Your engagement with them starts — not ends — after a sale. By providing convenient, meaningful and personalised experiences at every touch point, you’ll be better able to incentivise loyalty.

   When customers are happy, it’s easier to turn them into promoters for your brand through, for example, online reviews. According to Podium research, 84% of Aussies are influenced by reviews when discovering a business while 28% read a business’ reviews while standing outside before deciding whether to go in. By building relationships with your customers, you’re increasing their own loyalty and turning them into a cost-effective and relatable ambassador to their peers.

4. Outsourcing

   The bigger your team, the more opportunity you have to grow. However, hiring staff is an expensive commitment and isn’t easy with staff shortages affecting many industries in Australia today. Outsourcing provides a flexible and cost-effective way for you to tap the expertise of others. For example, if you’re creating a pitch deck for investors or partners, it might not be something you can do yourself, but hiring a professional copy writer or investment consultant isn’t feasible.

   Freelancers or contractors have higher rates, but can be engaged by the hour, day or project — through platforms like Fiverr — and you aren’t required to pay employee taxes or cover holiday or sick pay.

5. Grants and resources

   Working for yourself doesn’t mean working alone. Australia is a nation of start-ups, entrepreneurs and local businesses, and the federal and state government have a host of resources, grants and programs to help people like you. So whether you’re looking for advice and mentoring, funding, sponsorship, tax rebates or something else entirely, there are numerous grants and initiatives that can help you mitigate challenges and pursue opportunities in the months ahead.

Whatever the new financial year has in store, don’t let a tax bill deter you from pursuing strategic and sustainable growth. With the resilience, adaptability and innovation you’ve shown over the last two years, and a touch of financial savvy, there’s every opportunity to make your goals a reality in the new financial year.