How to scale a business without a big budget

Growing a business without the cushion of a big budget might seem challenging, but numerous entrepreneurs have proven it’s possible. By leveraging their creativity, grassroots marketing, and low-cost tools, they’ve been able to scale their businesses organically without relying on heavy investment in marketing. Their journeys offer practical advice on how small businesses can expand effectively while keeping costs low.

Shaun Merritt, Co-Founder and COO of Ruck Delivery, embraced grassroots marketing to grow his businesses. He started by building relationships on construction sites, busting out a griddle and cooking up Costco hot dogs to introduce his services to potential customers. 

“It started out just rolling up to friends or family who needed things moved,” he says. “Then expanded to showing up at job sites.” 

This hands-on approach built trust and rapport, allowing him to grow his customer base without spending on traditional marketing.

Similarly, Stefanie Ricchio, Founder of SRBC, relied on her expertise and thought leadership to connect with her audience. Rather than paying for ads, she focused on public speaking, webinars, and content creation. 

“I recognized that what I really loved was being able to take 25 years of experience and guide and help. So I started to lean into thought leadership. I know we cringe now when we hear that word, but I love public speaking. I love webinars. I love working brands. The last couple of years has really been about honing in on that expertise and building content, and now working towards building an app.”

By sharing her knowledge, she was able to grow her business and establish credibility in her industry without significant financial outlay.

Both Merritt and Ricchio used low-cost tools and social media platforms to get the word out about their businesses. For Merritt, Facebook proved to be a powerful tool for engaging with his blue-collar audience.  

“A lot of these older builders and pros, they’re still hanging out on Facebook and they have their Facebook networking that they’ve done,” says Merritt. “So it’s a good opportunity to dive into Facebook groups and be an active contributor, whether you’re liking something, commenting on what other people post, or if we’re trying to figure out a pro that we could refer to somebody who’s looking for a specific service. That’s been a strategy that’s helped our growth.”

In addition, Merritt’s business model showcases the power of leveraging local resources to scale without major investment. By creating a multi-sided marketplace that connects suppliers, drivers, and customers, he was able to grow his delivery service without the expense of owning a fleet or large storage facilities. Instead, he hires local contractors with trucks who might otherwise have idle equipment. 

“We’re able to onboard them really quickly, and then take advantage of local delivery routes that can be set up really easily and affordably,” says Merritt.

Ricchio, on the other hand, used free or low-cost digital tools to build a brand presence and showcase her expertise while connecting with potential clients.

“I started to realize pretty quickly that I could leverage social media like Instagram and LinkedIn for that thought leadership piece to get my ideas out there,” says Ricchio. “Then the website for me became the tool with the details. On the website there was a little bit more. If you want to talk to me about your business and building it, that’s where you could make that happen. That grew into adding resources, but it was all relatively inexpensive or free.”

By building trust through thought leadership and providing valuable insights to her audience, Ricchio was able to attract new clients without spending a lot on marketing. 

Recognizing your value and charging appropriately is key to sustainable growth, as Ricchio discovered during her journey. Initially, she accepted lower rates, but once she understood the value her expertise brought to her clients, she increased her rates by 150-175%. This not only boosted her revenue but also allowed her to work fewer hours. 

“I wasn’t working 40 to 50 hours because I wanted to hit these magic target numbers,” she says. “I can work 30 hours and my business has grown 20 to 30% in revenue year over year, every single year.”  Scaling doesn’t always mean working harder – it can mean working smarter.

Both Merritt and Ricchio emphasize the importance of using technology, but in a way that’s aligned with the needs of their businesses and audiences. Merritt’s blue-collar clientele might not be as tech-savvy, so he focuses on accessible platforms like Facebook and Craigslist, avoiding overly complex digital tools. 

“A lot of the people that we’re wanting to cater to are blue collar people, and that doesn’t mean that they don’t embrace technology all the time, but it does mean that there is a little bit of resistance to changes that occur, or even using the most up-to-date version of an app,” he says. “So right now, we’re still going to stick with what’s working.”

For Ricchio, low-cost digital tools were crucial in the early days. By starting with simple systems and platforms, she was able to keep costs low while still building her online presence. For small businesses, the key is to embrace technology that fits the business and customer base, without feeling pressured to adopt every new trend.

Adaptability is a vital lesson both Merritt and Ricchio spoke of, saying that staying flexible and open to learning is crucial for small business owners navigating growth without a big budget.

Ricchio advises entrepreneurs to really focus on understanding their business before scaling. “The best will happen when you actually have a strong understanding of what your business is.”

Finally, having the right business partner can provide complementary skills, support, and shared vision, making it easier to overcome challenges and achieve success together in business. Merritt says he couldn’t have grown Ruck to where it is without his co-founder, Lee Chang. 

“I couldn’t have done anything without him.”