Without any doubt, the U.S. is a land of opportunity for aspiring entrepreneurs. The country is the global leader in entrepreneurship, with more than 70,000 new ventures up and running. But the number is only the tip of the iceberg, so you shouldn’t dive in without digging deep. After all, the startup landscape is fraught with risks and challenges.
While joining the bandwagon sounds alluring, the journey is not as easy as you imagine. According to Chamber of Commerce statistics, the failure rate is high, with 21.9% of ventures failing to reach beyond the first year of operation. Considering the positive side, approximately 78.1% still succeed, which is a good number.
While many things could be responsible for the failure of these entrepreneurs, lack of funds is often a factor that always stands out. About 37% of startups say they lost the way because they run out of capital. That means for you to succeed with your shoestring startup too, you need to learn how to manage money smartly. And marketing is one area where you must achieve more with less.
You cannot afford to cut corners with promotions. But if you are not careful, expenses may eat your resources. The good thing is that it is possible to win with a cost-effective marketing plan. So, let’s show you some actionable tips that shoestring startups can rely on.
How to Succeed In Your Shoestring Startup with a Cost-Effective Marketing Plan
1. Outsource Whatever You Can
Marketing your startup business requires more than creating a website and running social media campaigns. Besides digital outreach, you must stick with traditional methods like telemarketing, inbound customer support, surveys, and lead generation. That’s a lot of work, requiring multiple hands to handle every aspect.
But you can consider outsourcing whatever is possible to cut the cost of hiring and managing an in-house team. Did you know that outsourcing non-core operations can help an organization save 20-30% of costs? That’s an impressive number.
According to Blue Valley Marketing, collaborating with a contact center provider offloads your burden and lets you focus on business-critical tasks. A provider offering outbound and inbound services can cover most aspects of traditional marketing.
The outsourcing model is ideal for shoestring startups because it does more than reduce marketing costs. You get high-value expertise on a budget and a scalable solution that can grow with your business. These providers have experienced teams with diverse experience across industries, so they can set up your startup for success.
2. Know Your Target Audience
Businesses running on shoestring budgets should take a strategic approach to marketing to make the most of their budget. The best way to do it is to conduct in-depth market research to know your target audience. It enables you to determine the platforms and channels they frequently use.
For example, companies targeting baby boomers should embrace traditional advertising such as telemarketing lead generation. Millennials tend to follow social media and online ads, but you cannot rely on digital outreach alone. The human connection continues to be the mainstay of selling.
An effective marketing strategy includes an ideal mix of outreach channels according to your buyer demographics. The more you know them, the better you can allocate your limited resources for the best outreach.
You need not waste time and money chasing people who will never convert. Just focus on the good prospects and win them with personalized buying journeys. The research part entails significant effort, but you can outsource it for quick results.
3. Educate Instead of Selling
Young startups running on tight finances need not spend a fortune on big campaigns and promotional giveaways. Focus on educating your target buyers instead of selling to them. Surveys suggest that consumers are 48% more likely to purchase from brands that educate them.
The impulse buying factor may work, but buyers won’t return for repeat purchases unless they trust your brand. Customer education translates into trust because it shows that your business cares about them. Doing that extra bit helps you build valuable relationships and boost customer retention.
The best part about education programs is that they do not burden your wallet. You can create ebooks, demo videos, and other educational resources. Distribute them online or provide copies to potential leads and buyers looking for customer support.
Your contact center reps can also serve as valuable assets when it comes to customer education. Ensure they know your offering inside out so that they can answer queries and resolve concerns.
The Takeaway
Startup success boils down to spreading the word about your new brand and offerings. Tight budgets and time constraints can hinder your marketing plans. But you shouldn’t let them hamper the growth of your startup. Create a winning strategy with cost-effective tactics to ace the marketing game. It’s about working smart, not hard.