2015-02-03 00:00:00 Profit & Loss English Is growth hacking a viable option for your startup? Abbas Alidina of Crowdbabble shares his insights. https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/10/Two-Coworkers-Brainstorming-Growth-Hack.jpg https://quickbooks.intuit.com/ca/resources/profit-loss/growth-hacking-your-way-to-profitability/ Growth Hacking Techniques for Small Business Profitability

Growth Hacking Techniques for Small Business Profitability

3 min read

As a small business owner, you’re used to doing more with less. Maybe you need to boost your media exposure, but you don’t have the budget to hire a public relations agency. Or you need to increase your number of customers, but your marketing department is either small or doesn’t exist. Your option is getting creative and making the best use of the resources you have by growth hacking.

Growth Hacking Techniques

You might want to use growth hacking techniques as an approach to marketing. Growth hacking ideas can help grow your business and improve your critical Profit and Loss statement. Your goal is finding techniques that have a direct impact on your bottom line. Growth hackers use creative, low-cost alternatives to traditional marketing techniques, such as social media or mobile marketing instead of traditional channels like TV or newspapers.

Who Uses Growth Hacking Solutions?

Many companies have growth hacked their way to business profitability successfully, including Facebook, Airbnb, Dropbox, and Uber. Airbnb, the startup alternative to hotels, has one of the most notorious growth hacking stories: the Craigslist hack. The service-oriented startup created a cross-platform integration with Craigslist by harvesting emails from posters on Craigslist and convincing them to list their short-term rentals on Airbnb. At the same time, Airbnb’s founders made it easy for their users to do a one-click post of their listings through Airbnb to Craigslist.

Uber’s Growth Hacking Techniques

Uber got started when its founders, Garrett Camp and Travis Kalanick, couldn’t get a cab while attending a tech conference in Paris. To start their enterprise with growth hacking techniques, the Uber duo cold-called drivers of black cars in their local area. A few agreed to accept an hourly rate to give the platform a trial run. Then the startup founders offered free rides to a San Francisco tech community. Folks loved the service and spread the word about Uber rides by old-fashioned word-of-mouth while at places such as restaurants, barber shops, and parties.

Experimenting With Growth Hacking Solutions

To figure out what growth hacking solutions would work best for your enterprise, you might want to experiment. In the early days at Crowdbabble, founder and CEO Abbas Alidina experimented with several growth hacking techniques when trying to get more users. Using social media, email marketing, search engine optimization, content marketing, and online advertising, the startup focused on finding out which channels worked best for attracting the most customers.

The company learned that online advertising on Facebook and Google was profitable, because the amount of revenue the new customers generated was higher than the cost of the ads they purchased to acquire those customers. Alidina and his team put that knowledge to work, leveraging the startup’s online advertising as much as possible. As they generated revenue from customers, they reinvested most of it back into online advertising. The results proved successful against Crowdbabble competitors at the time.

Growth Hacking Keeps You on Your Toes

What’s a key point about growth hacking? Growth hacking techniques usually become less effective over time because of the many variables in play. Your competitors can catch on to your growth hacking initiatives and copy your techniques, or customer behaviour could change. Whatever the reason, as time passes you may notice your growth hacking solutions are losing steam.

When to Switch Growth Hacking Techniques

Once you realize one of your growth hacking techniques isn’t working as well as before, it’s a good idea to evaluate your situation and shift gears. If online advertising isn’t cost effective any more, you might want to do what Crowdbabble did. The company scaled back on online advertising investment and turned its focus to content marketing and search engine optimization. If you keep experimenting and looking for new and profitable growth hacking methods, you have a better chance of staying ahead of your competition.

As a startup, you have advantages of speed and flexibility over your larger, slower competitors. Making the most of your ability to identify new opportunities and adapt immediately makes growth hacking a valuable way to achieve profitability in your enterprise. Using an accounting system, such as QuickBooks Online, you can generate a Profit and Loss statement automatically. Learn how today.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles

Growth Hacking Your Business in 2019: 6 Strategies to Try

There’s one word that belongs at the top of the priority list…

Read more

2021's Fastest Growing Industries in Canada [Survey]

Despite a tumultuous year, 76% of Canadian employees and business owners say…

Read more

Inventory Management Techniques for Small Businesses

There are almost as many ways to manage inventory as there are…

Read more