5 Proven Ways to Cut Expenses and Increase Business Growth

Any business owner is always looking for the perfect budget sheet. You’re never going over the proposed budget; there’s no red in sight, and expenses are down.

While you may not go to bed at night with thoughts of budgetary forms and numbers dancing through your head, looking at your bottom line and seeing increased growth and lessened expenses will surely make you smile.

But how can business owners take these steps? They can always cut expenses, but that may not increase growth. They can also inject more money into the business, but that only increases expenses.

So, how do you find that magic line?

1. Advertise Differently
2. Outsource Away
3. Bring Some Zen to the Office
4. Don’t Buy Everything
5. Go For Intelligence, Not Experience

Advertise Differently

• Why it works: Traditional advertising methods like print or TV can be expensive. Switching to digital marketing strategies can reduce costs while increasing visibility and engagement with your target audience.
• How to do it: Leverage social media platforms, SEO, and content marketing to reach a broader audience at a lower cost. Consider influencer partnerships, email marketing, and running targeted ads on platforms like Google or Facebook for more precise and cost-effective campaigns.

Many people grew up in the very traditional forms of advertising: print, radio, and television. These methods are still out there, but the traditional ways are often the most expensive. Where do you turn to?

Take your first step with social media. Creating an account is completely free, and with around two billion active users on social media, your business will be in front of lots of eyeballs.

Promoting your business via social media is much cheaper than the traditional routes. You won’t be shelling out the big bucks for a TV spot or ad in the paper.

You should also consider endorsements, content updates, and video usage on social media. These are ways to reach various audiences without spending hundreds or thousands of dollars.

Outsource Away

• Why it works: Outsourcing allows you to delegate non-core tasks to experts at a fraction of the cost of hiring full-time staff. It frees up internal resources to focus on key business functions.
• How to do it: Outsource functions like IT support, customer service, content creation, or even HR to specialized firms or freelancers. Platforms like Upwork or Fiverr make it easy to find professionals who can handle specific tasks efficiently and affordably.

While it could be great to always have X employees on call, waiting to be beckoned to your office, that becomes costly over time.

That’s why many companies outsource different projects to various firms, people, or consultants. Not only will you save money by not having to pay a full salary, but it’s also always great to bring someone into your office with a different viewpoint on how things are run.

Having an outside opinion can help you all break out of a potential echo chamber and generate fresh ideas.

Bring Some Zen to the Office

• Why it works: A healthy, stress-free work environment increases employee productivity and reduces turnover, cutting recruitment and training costs. Happy employees are more engaged and motivated, which leads to better output and business growth.
• How to do it: Encourage work-life balance, provide flexible work arrangements, and create a positive work culture. Incorporate mindfulness practices, wellness programs, and even simple office perks like ergonomic furniture to keep the team focused and energized.

No, this doesn’t mean you should have a weekly meditation hour for all your employees (although that would be great!). But you should make sure your office is a well-organized and comfortable place.

Clutter is OK for some, but only for some. Make sure you are taking advantage of your space and being as organized as possible. See how to better arrange your floor plan or put the printer in a more central location.

Look at what you’re not using regularly and get rid of it. This could include anything from physical office items to software.

How will this increase growth? Happier employees mean better work efficiency, which means better output. You won’t have to worry about tripping over that stupid plant anymore.

Don’t Buy Everything

• Why it works: Avoiding unnecessary purchases can significantly reduce overhead costs. Businesses often buy equipment, software, or office supplies that aren't essential, which can eat into profits.
• How to do it: Evaluate what you genuinely need versus what you can rent, lease, or share. For example, rent equipment when needed instead of purchasing outright or use the software on a subscription basis instead of buying licenses. Additionally, consider joining a coworking space rather than investing in expensive office infrastructure.

Well, obviously. But this more refers to the fact that you don’t have to buy everything you could need for your office or business. Consider long-term rentals, for example.

Consider renting vehicles, equipment, or items instead of spending much money upfront on a big purchase. You can give something a test run before you start using it to make sure it is essential.

By managing these costs more efficiently, you can invest more time and money in other parts of your business, achieving the best return possible.

Go For Intelligence, Not Experience

• Why it works: Hiring based solely on years of experience can be costly, and experience doesn’t always equate to better performance. Hiring smart, adaptable, and quick learners with a growth mindset can bring fresh perspectives and ideas, while keeping salary costs lower.
• How to do it: Focus on hiring for problem-solving skills, creativity, and adaptability rather than just experience. Encourage continuous learning and development within your team so that they can grow with your business while remaining budget-conscious.

When it comes to hiring new people, hiring those with more experience is going to be more expensive. Someone with multiple years of experience in the field will be more valuable than someone fresh out of college.

But, a way to cut down your expenses is by hiring smart, motivated people who may need more experience. This isn’t to say you should stock your office with many rookies, but having those new, driven employees is a way to increase your growth. No one wants to take a new job and just sit back, doing nothing.

Intelligent people will quickly pick up on the nuances of the job. They don’t have to have years of experience to be effective.