What is one tip for reducing costs while still growing top line revenue?
To help you reduce costs while still growing top line revenue, we asked successful small business owners and entrepreneurs this question for their best tips. From outsourcing to experts to using social media as your primary form of marketing, there are several insights that may help you grow revenue while reducing costs in the future.
Here are 14 tips for reducing costs while still growing top line revenue:
- Outsource to Experts
- Always Be Innovating
- Rent Or Lease Instead of Buying
- Utilize Commercial Bridge Loans
- Expand Your Network
- Negotiate With Suppliers
- Understand Your Brand
- Implement Risk Management Strategies
- Build a Referral Program
- Innovate With Digital Technology
- Base Yourself Fully Online
- Create Incentives for Team Cost Reductions
- Concentrate On Efficiency
- Use Social Media as Your Primary Form of Marketing
Outsource to Experts
While I understand the desire to handle everything in-house, some things are better left to others. By outsourcing certain duties, such as marketing or recruiting, you can reduce both your workload and your overhead. You can start to see the effects on your top-line revenue right away, and your bottom-line revenue will also take less of a hit.
Alisha Taylor, Alisha Taylor Interiors
Always Be Innovating
Innovation, many times, is the difference maker. When people hear innovation, many automatically think that equates to spending money, not saving it. That is simply not true. Innovation means THINKING about a task, issue, or pain point differently. Figure out a way to do something more efficiently, or faster. Both are money makers, every time.
Robert Johnson, MAC Prefab LLC
Rent Or Lease Instead of Buying
If you’re in need of certain equipment, but can’t justify the expense of purchasing it outright, you should consider leasing or renting instead of buying. That way, you only have short-term expenses rather than a long-term loan to pay off. Short-term financing, with favorable terms for rentals or leases, can save you money in the long run.
Carey Wilbur, Charter Capital
Utilize Commercial Bridge Loans
Sometimes, all you need is short-term financing to help you acquire a property or fix it up. A commercial bridge loan can work to your advantage in this scenario. Your term will be fixed, anywhere from six months to three years. You ultimately reduce your long-term expenses while granting you access to funding to help base or grow your business.
Allan J. Switalski, AVANA Capital
Expand Your Network
Networking is a wonderful way to build business relationships with others that can reduce your costs. For instance, you may find yourself in need of a newer and cheaper supplier, and by expanding your network, you can increase your chances of finding one. The more people you know, the more opportunities you have to make connections that can help you reduce expenses and grow your business.
Randall Smalley, Cruise America
Negotiate With Suppliers
Staying supplied can result in huge expenses. It’s in your best interest to talk with your suppliers to see if you can wring a better deal out of them, perhaps signing a long-term contract in exchange. You can reduce your own costs and guarantee your supplier a consistent, reliable customer for the foreseeable future. It’s a win-win for both parties.
Vanessa Molica, The Lash Professional
Understand Your Brand
The future development of your business will rely on the mission and vision set by your brand standards. If you’re unsure about what identifies your brand, how can you convince others? You need to know your own company and products well, especially in marketing, talking to your team to get their take on each product and knowing everything about it helps when you’re talking to potential customers and can lead to a sale, which will increase your top line.
Amit Raj, The Links Guy
Implement Risk Management Strategies
One way you can reduce business expenses is through implementing a strategy for risk management. With the right risk management strategy, you reduce the chance of insurance claims, and this then can reduce your monthly insurance premiums. Implementing a risk management strategy will cut down on your expenses in both the short and long-term, improving your overall profitability.
Chris Abrams, Marcan Insurance
Build a Referral Program
So much money is spent on customer acquisition, but you can make it easier on yourself by building a referral program. It helps to think of your existing customer base as a rich marketing resource. Let your satisfied customers be the ones recommending you to others, and give them an incentive for referring new customers to you. With such a referral program, you can spend less on marketing and still gain more customers. Your cost per new client will diminish significantly with each referral.
Brandon Berglund, Berglund Insurance
Innovate With Digital Technology
This is the twenty-first century, and you should be utilizing digital technology to reduce your expenses wherever possible. For example, you can automate certain customer service functions, or better use software to keep track of expenses. You can also use it to innovate your product line, ultimately providing more satisfaction to customers and patients.
Henry Babicheknko, Stomadent
Base Yourself Fully Online
Base yourself fully online if you want to save a lot of money. If circumstances permit, you can even work out of your home. Running a brick-and-mortar business is significantly more costly than an eCommerce company, especially when you consider property rental and utilities costs for your business on top of everything else. You’ll have much less to worry about, in terms of expenses, with an eCommerce business.
Nataly Vanunu, Boho Magic
Create Incentives for Team Cost Reductions
Use rewards to create a zero-waste culture that reduces cost without losing revenue-building outputs. Incentivizing expense reduction helps get every staff member on board and excited to reduce costs – a cost-based bonus system can be incredibly motivating. Whether you dole out sliding-scale bonuses, extra vacation time, or simple gift cards, poll your team to determine which perks will motivate them most. Train your team to reduce costs like pros with careful research and planning, reviewing current spending and tweaking as needed, then effectively implementing the plan.
David Aylor, David Aylor Law Offices
Concentrate On Efficiency
Concentrating on efficiency is one method to cut expenses while increasing top line income. Ascertain that you have in place mechanisms that enable you to function as effectively and efficiently as possible, and look for ways to avert expenditures. Additionally, seek strategies to increase income without raising expenses. There are several possibilities for any of this, so be inventive and thoroughly investigate all of your alternatives. By concentrating on efficiency and growing revenue while maintaining a low operating costs, you may expand your business while remaining within your budget.
Hector Ruiz, BBQ Grill Academy
Use Social Media as Your Primary Form of Marketing
In those critical early years of business, it can often be difficult to find the necessary funds to really create quality marketing campaigns to help build your audience. This is why investing in social media is a fantastic idea, as it is exceedingly more affordable than traditional marketing tactics, and leaves plenty of room for top line revenue growth. Social media marketing is also a great way to build a unique, personal relationship with your audience, which is crucial at the beginning of your entrepreneurial journey. Even if your marketing budget is next-to-nothing, social media is still accessible enough that it can give anyone a platform to begin building a brand.
Peter Robert, Expert Computer Solutions
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