Need to cut your budget? 10 ways to start

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When you need to cut costs for your business, it’s hard to know where to start, especially if you have employees who rely on the success of your business. However, there are a few great ways to start getting your business finances back on track.

To help you choose the best path, 10 members of the Young Entrepreneur Council (YEC) are looking at the following question:

“When you’re faced with a situation where budget cuts are needed, what’s the first place you typically look to cut costs, and why?”

Here’s where they recommend you look and what you can do to get started.



1. Eliminate Process Errors

“Inefficient and error-prone processes cost businesses tons of money. If errors in a process lead to bad service or defects in your products, each time that process is performed, you lose money because you have to spend money to fix those errors. If your teams understand how to optimize these processes to eliminate errors, the monetary benefits will far outweigh traditional ideas of budget reduction. ~ Karlo Tanjuakio, Kure

2. Negotiate with suppliers

“One way to reduce costs without negatively affecting your business is to negotiate with your suppliers. Many companies you work with will likely prefer to negotiate a lower rate for you than risk losing your business to a competing offer. ~ Bryce Welker, the CPA exam guy

3. Phasing out redundant technology

“We first try to find redundant costs in technology and services. Do you really need a cool service or technology? If that’s not enough, you can often renegotiate more expensive services with providers. ~ Peter Boyd, PaperStreet web design

4. Rethink marketing strategies

“Reduce marketing without affecting its overall results. There are probably many areas that you can reduce or remove and replace with a bigger social media presence, which is largely a free marketing strategy. This budget line is usually where you can identify areas of overspending to reduce without affecting the ability to meet your goals. ~ Andrew Schrage, Money Crashers Personal Finance

5. Reduce paid advertising costs

“If budget cuts were necessary, I would reduce our paid advertising budget and opt for cheaper alternatives. For example, we can create referral programs to get referrals. We can create rigorous social media marketing campaigns and encourage all our employees to participate to increase their visibility. A good email marketing strategy can also help create inexpensive promotions. ~ Thomas Griffin, Optin Monster

6. Compare short and long term goals

“When we cut costs, we do so by looking at the long-term goals of an expense. For example, when we started, the bins we wanted to use for our stock were very expensive, but the alternatives would have been less efficient in the fulfillment process, so we decided to spend the money on them anyway, and bought plastic folding tables. and chairs for staff instead of getting fancier furniture. ~ Vanessa Nornberg, Metal Mafia

7. Look at overhead

“We will (quarterly) audit all expenses in the organization to see where we can cut our overhead and reduce unnecessary expenses. Often we subscribe to technology tools that we don’t use that cost tens of thousands of dollars a year, so those are the first things that get cut. ~Kristin Kimberly Marquet, Marquet Media, LLC

8. Cut subscriptions

“You sign up for so many programs that you think you’ll use. When you’re able to check bank statements, you’ll see programs you haven’t used in months. Cut them first, then dig deeper into your current platforms and research whether you are currently on the most profitable plan for your business or not. ~Mary Harcourt, Cosmo Glo

9. Reduce networking and event memberships

“If you have multiple networking group memberships or are planning to attend an event, consider cutting your budget in these areas. grow your following, like cold emails and advertisements. However, you can put an end to expensive networking tasks, especially when they can cost thousands of dollars. ~ Syed Balkhi, WPBeginner

10. Use AI

“If you want to reduce your costs, you should consider adding AI to your business model. We use AI for certain customer support functions and as a way to track data and security on our site. You might have to pay a little more upfront, but this technology will pay for itself in a few months, and before long you’ll start saving money with this seemingly minor change.~ John Turner, SeedProd LLC

Image: Depositphotos


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