Best Ways to Decrease Your Monthly Budget Without Decreasing Revenue
As a growing business, you understand the need for a budget that won’t hinder all the growth and expansions you want to set in motion. Especially if your business is in the early stages, you probably relate to the need to save money in whatever areas you can. Just as an individual can make changes to their life and expenses in order to save money, so can businesses follow the same general principles. But luckily, on the business side professionals can learn from the wisdom and experience of successful founders and owners who have discovered their own methods for decreasing their monthly budget. With these tips and tricks from business moguls, you will learn how to effectively decrease your business’s monthly budget without decreasing your revenue. Let’s dive into their advice!
Introduce a Referral Program for Discount Incentive
“What better way to spread news about your company than having your customers share trusted positive reviews on the products and services they loved? Research proves that people feel much more comfortable buying from a business that has real human reviews, and the trust factor increases exponentially when the referral comes from someone they know. This is why referral programs are quite effective at building your business’s customer base, and it’s a win-win situation when customers are rewarded with discounts for each successful referral,” says Ben Thompson, CEO of Hardwood Bargains.
“You can save costs you probably did not even realize had been adding up over time on printing supplies when you go fully paperless. Just think about all the paper, printing supplies, postage, and ink that goes into mailed documents. Going paperless means employees and customers receive their documents digitally rather than in the mail. Plus, this option helps create less waste and aids in saving the environment. You can either offer customers the option between paper or digital communication–and most people generally tend to be content not to receive physical mail these days–or transition your company to be fully paperless by a certain date. You can build the decision to go paperless into your company’s values if your company has an ecologically minded outlook,” says Matt Seaburn, Partner and President of Rent A Wheel.
Find the Insurance Provider With the Best Rate
“The insurance provider and coverage you choose for your business matters immensely, so don’t make a hasty decision or select the first one. I recommend you shop around a little, compare prices between options, and choose the plan best suited to your budget and needs. But remember that customer service and plan offerings are sometimes of equal value to price when it comes to choosing the insurance that will protect and work with your business to take it where it needs to go. Even if you already have an insurance plan, you might be able to save a significant amount of money if you do some market research. Make sure you’re not over paying or duplicating any coverage costs. Maybe you’ll even realize you have the best deal, in which case you can rest easy,” says Carrie Derocher, CMO of TextSanity.
Pay Off Your Business Credit Card Each Month to Avoid Paying Interest
“You can save a lot of money both in your personal life and for your company by paying off your credit card each month. When you let the balance accumulate throughout the year and pay it off at the year end, you will also be paying a huge increase in cost due to the interest you’ll have been accumulating all year. Save yourself the interest fees and pay your credit cards off monthly,” says Dr. Robert Applebaum, Owner of Applebaum MD.
Reduce Your Energy Bill Through Solar Strategies
“We showed [a company we worked with] how to use the available state and federal incentives, and they were able to install solar and energy efficient lighting. Their energy bill was reduced by over 40 percent. Not only was there no adverse impact to the product, the company was able to go to their customers and show that they were taking an environmental leadership position as an added value. The goodwill and positive PR was valuable. Businesses both small and large can implement similar strategies by installing solar, utilizing a power purchase agreement, leasing land or roof space to solar providers, installing energy-efficient appliances and lighting or having an energy audit conducted and implementing the recommendations. The best part is, if you use state and federal programs, these programs can be low to no cost,” says Michael Dinich, Founder and CEO of Your Money Geek.
“I recommend that you take full advantage of networking in order to connect with like minded professionals and businesses. There are many benefits to knowing others in your field, not the least of which is fostering relationships with people who understand your passion and heart for your business. There are wide options for finding a networking event or community these days; a fairly new app making ground is Opportunity, where professionals can be algorithmically matched to others in their area with similar expertise and goals. You might not feel the immediate financial effects of increased marketing, but eventually it might lead to a big collaboration or idea,” says Katie Lyon, Co-Founder of Allegiance Flag Supply.
Staff Your Marketing Team In-House
“Rather than onboarding someone to handle your marketing or social media management, or outsourcing these needs with a company that specializes in these areas, you can save a bundle by filling these roles in-house. There are ample training materials and free courses available online,, so you can easily pick up these skills or spread the load amongst multiple employees. As long as you have a cohesive brand voice across all platforms, you don’t need to hire one specific person to handle these tasks in a full time role if you don’t have the budget for it,” says Eric Gist, CEO of Awesome OS.
Use An Accurate Time Tracking App
“So that your employees accurately calculate their hours if your business is operating under a remote or hybrid work model, I suggest finding a reputable and easy to use time tracking app that you can implement around the “office.” I have found success with both Clockify and Toggl Track, but you can search around to find an option with all the features you like,” says Tri Nguyen, Co-Founder and CEO of Network Capital.
Skip the Office Space
“With times as they are right now–and the ease and popularity of remote work as it stands–it is a great time for small businesses who need to cut back on costs. Many companies are choosing to end the leases on their workspaces and instead of having their employees work from the office, they let them choose their work environment. If your team is already utilizing the remote or hybrid work model, you will have an easier transition. You might be surprised how much you can save when you’re not paying for an office space, as well as utilities, parking, and gas from commuting to work. Your employees will thank you for the reduction of cost that they also pay on gas and parking. Whether you are ready to give up your company’s workspace or you just want an idea of the money you’d save, do the math and see if the savings are worth it,” says Jacques-Edouard Sabatier, Co-Founder and CEO of JOW.
Utilyze Free Payment Platforms
“This method might not be for every business but it can help in a pinch for small and start up companies. Rather than investing in an account with a pricey payment transfer platform, or paying a fee per transaction, you can use free options such as Venmo, Paypal, or Google Wallet to send and receive money. Even those minimal transaction fees can add up when you’re regularly sending money through paying your employees,” says Fred Gerantabee, Chief Experience Officer of Readers.com.
Delegate Tasks to the Right Departments
“As entrepreneurs, sometimes we want to do everything ourselves because we want to have control or we want to ensure quality–from bookkeeping to recruitment to payroll—[the] tedious work that needs to be done to keep a business running. But what we don’t realize is that when certain processes take too much time away [from] jobs that add value to your service or help with sales, that process is costing your business money,” says John Jonas, Founder and Owner of OnlineJobs.
Increase Your Team’s Productivity and Engagement
“When your employees believe in the tasks they’re doing they create their best work. Not only will having a productive team aid in the efficiency and success of your company, but having productive and engaged employees helps to save the company in business expenses. You are paying your employees so you want to ensure they’re working at a streamlined pace. But rather than micromanaging your team to ensure they’re on task, you can inspire them by reminding them of the company’s values and goals, as well as engage them by asking for their opinions and by having an open door policy,” says Raul Porto, Owner and President of Porto’s Bakery.
Now that you know the best advice from successful business owners and founders on how to decrease your monthly budget but not your sales, you can begin to implement these methods of saving money into your own business’s financial strategy. Be prepared to find yourself with a lot of extra cash, but remember to use it wisely and place it into the areas that will bring about the most growth.