5 Ways to Be Generous While Still Being a Frugal Business Owner You can be charitable and considerate without breaking the bank.
By John Rampton Edited by Mark Klekas
Opinions expressed by BIZ Experiences contributors are their own.
Businesses of all sizes can benefit from cutting costs. But if they are not carefully considered, they can prove disastrous. After all, to grow, companies must increase sales, not cut costs. When essential business systems are denied capital in order to cut expenses, stagnant growth or negative cash flow can result.
At the same time, if you don't spend money on a critical business system, you might end up with unintended consequences. In reality, many BIZ Experiencess are being cheap when they think they're being frugal. The problem is that being cheap leads to problems, while being frugal leads to efficiency.
As a frugal business owner, you might wonder how to appear generous without spending a fortune. Remember, you've got to make sure your business is profitable. It's still okay to be generous despite that.
With that said, these five ways will make your business appear generous even if you're frugal.
1. Offer your time and expertise.
Being generous means offering your time and expertise to others. Among the things you could do are volunteer for a local charity, mentor a new business owner, or speak at a community event.
Time is your most precious asset, so giving time and expertise without expecting anything in return is a gift. Even if it doesn't directly benefit you, it shows you're willing to help others.
If your company has a new hire, you could offer to mentor them. As a result, they would be able to learn from your experience and grow their skills. For existing team members, schedule regular one-on-one meetings. One-on-ones may enable you to check in with them or obtain feedback from them.
Alternatively, you might consider speaking at a local business event or community college. This way, you can share your knowledge with others and contribute to the community.
Related: Why I Give Away My Knowledge for Free — and How That Helps Me Drive Sales
2. Offer great deals.
Discounts and promotions can also help you appear generous to your customers. It's a great way to express your gratitude and encourage them to continue to do business with you.
Among the many ways to offer discounts and promotions are:
- Promoting your products and services with a percentage off.
- Free shipping.
- Free trials, like Netflix or Amazon Prime.
- Giveaways.
- A buy-one-get-one-free offer.
- Providing exclusive discounts to your loyal customers or customers who refer others to your business.
- Freemium models offer essential services free of charge but charge for additional premium features that enhance the user experience.
As another example, you could offer free consultations to new customers. As a result, they could learn more about your products or services and determine if they are right for them.
You demonstrate your value and willingness to go the extra mile to satisfy your customers by giving away your products or services. By doing this, you can build goodwill and loyalty. In addition, this is a great way to thank them for their business and encourage them to keep doing business with you.
Moreover, Dan Ariely explains in his book Predictably Irrational — that people change their behavior when they get something for free. Free isn't just about price. It's an emotional trigger that's hard to resist.
3. Partner with other businesses.
Partnering with other businesses is another way to be generous. It could be as simple as offering discounts to each other's customers, promoting each other's products or services, or collaborating on joint ventures.
Whenever you partner with another business, your success is mutual. As such, it is a win-win situation for everyone. This is why many big brands establish co-branding partnerships, like the Nike+iPod Sports Kit.
For example, you might partner with a local restaurant to offer your customers a discount. Your customers would be encouraged to try the restaurant and vice versa.
Consider partnering with a local non-profit organization to donate some of your profits. As a result, you'd be showing your customers that you support your community.
4. Donate your products or services.
In addition to donating your products or services, you can also give to a good cause. For example, you might donate to a local food bank or shelter for the homeless. If you have products or services that you would like to donate to a charity auction or raffle, consider doing so.
You might donate meals to a soup kitchen if you own a restaurant or food truck. Your web designer skills could be put to work building a website for a local community center, school, or non-profit organization.
Related: 3 Creative Ways Small Businesses Can Give Back To Society Without Donating Money
5. Be helpful and supportive to your employees.
Finally, be sure to take care of your employees. As your business's backbone, you must acknowledge their efforts.
You can give back to your employees in many ways, including;
- Ensure they are paid fairly.
- Provide them with paid time off, bonuses, or other perks.
- Provide a clean and safe work environment.
- Flexibility in work schedules.
- Help them develop their careers, such as paying for them to attend industry conferences or workshops.
- Allow them to network with other professionals in their field.
- Show your employees you value them by supporting them during difficult times.
- Provide employees with opportunities to bond and relax outside of the office, such as retreats or holiday parties.
Taking care of your team isn't just the right thing to do. Your bottom line will also benefit. Ultimately, when employees feel valued, they are more productive, engaged, and loyal to the company.
Related: Why Gratitude Makes Leaders More Effective
Generosity doesn't have to be expensive. In fact, without breaking the bank, you can be generous in many ways. Using the tips above, you can appear generous but still run a frugal business.
