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Don't Be Scared! Marketing That Minimizes Risk


Many small businesses dream of growth and expansion, envisioning more significant profits, increased market share, and greater brand recognition. However, for some, the idea of scaling up can be daunting, even frightening.


This fear of growth is not uncommon, but it can get in the way of growing a profitable company. If you're nervous about getting bigger, it's time to evaluate your fears.


Some firms are concerned about increased costs. Do they have the funds to invest for growth? Others worry that expansion exposes the business owner to greater costs and, therefore, risks. And since few companies expand in a perfect arch, how much will the owner suffer during periodic slowdowns?


Operational complexities are another concern. More business means more employees, expanded operations, and the fear of losing the personal touch that defines many small businesses.

Many companies' success was founded on personalized service in the early phases. These firms are unsure how they can grow and keep that approach intact.


In this article, we explore why some small businesses are scared to grow and provide insights on adjusting marketing strategies to mitigate these concerns.


The Fear of Increased Out-of-Pocket Costs

One of the primary reasons small businesses fear expansion is the perception that it will lead to significantly higher costs, leaving them with less cash. This fear is not unfounded. Scaling up often requires investments in infrastructure, technology, and human resources. Additionally, increased sales volume can lead to higher inventory costs and operational expenses. But there are ways to reduce risks.


Let Marketing Pull Growth: While building ahead of sales is scary, building to meet sales demand is safer and easier to justify. That's why creating a sales funnel incorporating digital marketing tools is smart. By creating a marketing plan that reliably delivers a predetermined level of sales, you can sell first and build later.


Leverage Flexible Pricing: Owners can look to agencies for volume-based recommendations or tiered pricing structures that reduce sales fluctuations. With the proper setup, you can also adjust sale prices based on demand.


For instance, Kohl's and Sonic Drive-ins are famous for making the most of off-hours by offering attractive promotions during slow parts of the day.


Focus on ROI: The days of uncertain marketing returns are over. Today, digital marketing must demonstrate a return on investment (ROI) with analytics that clearly indicate marketing's short-term impact on revenue and profitability. Ask your agency to regularly report on what you're spending and how that marketing is impacting your income.


Maintain Flexible Marketing Agreements: Even the best-laid plans can go awry. So, when your business needs to take a break from marketing for any reason, make sure your firm can stop charging you during your breaks. Insist on month-to-month contracts.


The Fear of Operational Complexities


As businesses grow, they often face increased operational complexities, such as managing larger teams, dealing with more customers, and handling a broader range of products or services. These complexities can be intimidating for small businesses accustomed to a more straightforward operation. However, with some planning, it can be easier to manage these issues.


Scale at the Right Pace: Some companies want to grow slowly; others are ready to double sales this year. Make sure your marketing team understands business goals and organizational limitations and adapts your marketing strategy appropriately.


Staff Up: One of the biggest challenges to organizational growth is hiring. Many marketing agencies (including Cup O Content) offer employment advertising to help companies find the right people at the right time. Being able to quickly recruit all levels of new employees gives owners more flexibility in the rate of growth.  


Keep It Simple: As owners spend more time growing the business, they have less time to spend with marketing companies. So, choose an agency that customizes its processes and services to meet the needs of entrepreneurs—not the other way around.


The Fear of Losing the Personal Touch

One of the defining characteristics of many small companies is the personal touch they offer to their customers. As organizations expand, there is a fear that they will lose this close connection with their customers and the associated competitive edge. Happily, it's never been easier to stay close to your customers and continue to provide personalized customer service.


Embrace Personalized Marketing: Providing a custom message is a great way to make your customers feel special. Even a larger company can deliver personalized touches, like a letter from the owner when something goes wrong or gift packs for ER nurses who post how much they love your product. A good marketing agency will be able manage these kinds of tasks.


Share Customer Content:  Another way to keep it personal is to showcase testimonials and reviews. Start sending customized emails designed to offer relevant information or deals on the products they already know and love.


Posting photos of thank you notes, reposting customers’ social media posts showing your product, and sharing other types of customer content are other great ways to maintain a reputation for customer service. Agencies can also handle these kinds of tasks.

Cup O Content Is Here to Help You Overcome Your Fear of Growing!

We love helping small businesses pursue their full potential. We help clients understand and address concerns by developing marketing strategies that alleviate these fears and create a roadmap for sustainable growth. Small businesses can overcome their growth anxiety and embrace expansion opportunities by highlighting cost-effective solutions, emphasizing scalability, and maintaining a personalized approach. Want to talk more? Contact us today to set up a free consultation.

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