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A startup needs to lay the foundation for a robust growth story quickly. It doesn’t have the resources that some of the big businesses have to take it slow and steady. Without a quick growth, startups face the threat of wrapping up their operations; this is why their eyes need to be on the ball from day one and they need to hit the ground running.



But, the lack of finance management typically plays a spoilsport in the attempt to make investments that propel growth. This is why startups have to be smart about their investments and very clear headed about how they go about achieving growth.



Here are four critical elements that startups will do well to make a part of their growth strategy, in order to control their overheads and still experience high ROI:



1. Working out a Marketing Budget



Before you pour money into marketing your products or services, make sure you work out how much you can afford to spend. Define the marketing objectives with respect to the revenues you want to generate, the target audience you want to reach and the markets you want to capture. Ideally, your marketing budget should be a percentage of your projected sales figures. But, this can be difficult to do, considering you are just starting out so the next best option will be to work out an amount that you can set aside every month for marketing, which doesn’t put too much pressure on your finances.



2. Sticking to the Budget



Startups have a propensity to go above and beyond their budgetary restrictions. The way it happens is like this – A startup has earmarked an X amount of money for marketing purposes, but it comes across a product that it believes will boost its marketing efforts; in this case it might choose to dig deep into its pockets to make some extra spending.



The problem is this won’t be a one off thing. This is just the marketing budget we are talking about. Such situations can also crop up while hiring an employee. There might be a case where a professional might be expecting a salary beyond what you have budgeted for. You might still choose to take a decision in favor of this candidate. In such cases your startup will be operating beyond its means, which in the long run can take it down. Therefore, an essential part of a startup’s growth strategy should be sticking to the designated budget.



3. Getting Yourself a Web Property



A part of that marketing budget you’ve set aside should be used in getting a website developed. A website is an ideal branding tool, especially if you want to market your brand on a budget. It helps generate brand awareness and it can be the ideal foundation for your internet, social and content marketing efforts. All three marketing tactics are great for startups as their cost per lead is at the lower end of the scale.



4. A Move to the Cloud



Startups are looking for cap-ex free growth and this is where the pay as you use model of the cloud computing comes into help them out. By moving their IT infrastructure to the cloud computing, they can improve accessibility, collaboration and competitiveness.



Here’s a simple benefit of the cloud computing – it ensures your employees can work from distributed locations, their homes for example, and still collaborate effectively on projects. This essentially does away with the need to have an office space. Imagine the money saved, which can be used for other revenue generation activities.



Conclusion  



Keeping these elements in mind while defining your startup’s growth strategy will not help you achieve your growth targets but ensure sustained growth. The idea it to get more with less and these tips can help you do just that.

 

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