tm logo

Resources

Business

Cost Saving Ideas For Businesses

8 Cost Savings Ideas From Business Owners for Businesses in 2024

Joshua Julien Brouard

Joshua Julien Brouard

05 January 20247 min read

share this blog

8 Cost Savings Ideas From Business Owners for Businesses in 2024

With the reality of the rising cost of living in the US, it's to be expected that businesses may be looking for ways to continue operating without having to raise the price of their goods or services.

In this article, I explore eight unique cost-saving ideas for businesses from business owners who have learned that frugality doesn't have to come at the cost of their success.

Let's get started!

(1) Kolyanne, founder of Pinch of Attitude, understands the value of the global freelancer market

Image of the founder of Pinch of Attitude

Kolyanne SK, the innovative founder of Pinch of Attitude, shares her strategy for harnessing the global freelancer market to save costs in 2024:

"If you want to save money on your business this 2024 without having to sacrifice the quality of the services you provide, I suggest hiring freelancers for routine/easy tasks such as scheduling your meetings or reaching out to potential buyers via various marketing efforts instead of opting for onsite employees.

There are lots of trusted freelancers you can hire online through reliable platforms (like Upwork), and the best thing is that you can slash your salary expenses by almost half when compared to hiring onsite employees. The reason is simple - since these freelancers are already experienced in the field, you can save on training costs, 13th-month fees, medical benefits, and even expenses for paid leaves.

You can also hire freelancers to work on your business for as low as $5/hour, and your employment contract depends on how long you will be needing their services. The freelance market usually doesn't offer separation pay, so once the project you have assigned to them is done, you can easily part ways and just contact them in case you need their help again in the near future."

(2) Geoff, founder of Don't Do It Yourself, utilizes the art of frugality

Geoff Cudd, leading the charge at Don't Do It Yourself, reveals his company's success in adopting frugal yet effective strategies like a lean software stack and remote-first policies:

"At DDIY, we've mastered the art of frugality while successfully growing by adopting a 'lean software stack' approach. Instead of investing in expensive, all-in-one solutions, we carefully select and integrate specific tools that address our unique needs.

For instance, we use open-source platforms for development, which significantly cuts down costs while allowing customization. We also negotiate and buy annual plans for essential services to take advantage of discounts, reducing our operational costs by up to 30%.

Another innovative strategy we've implemented is a 'remote-first' policy. By not maintaining a physical office, we save on rent, utilities, and commuting costs. This policy also allows us to hire talent globally, often at more competitive rates.

To maintain productivity and team cohesion, we invest in efficient communication tools and regular team-building virtual events. These strategies have not only saved us money but also contributed to a happier, more productive team.

For 2024, I recommend businesses look into 'service swapping' with other companies. This involves exchanging services you need with services you offer but without the monetary transaction.

It's a powerful way to save money, build business relationships, and leverage each other's strengths."

(3) Guillaume, founder of Or & Zon, recommends sustainable procurement & digital transformation

Inage of the founder of Or & Zon

Guillaume Drew from Or & Zon advocates for integrating sustainability and digital transformation into business practices to reduce costs and improve operational efficiency:

"For 2024, my top advice would be to lean heavily into sustainability and ethical procurement. We've found incredible cost savings by utilizing direct sourcing methods from global artisans, eliminating intermediaries and multiple markup stages.

This practice has enhanced our sustainability credentials and fortified our brand value. Investing in technology and digital transformation for greater business efficiency is indispensable. At Or & Zon, we operate our website on Shopify, which has been cost-effective and scalable, enabling us to reach our consumers worldwide directly without needing physical stores.

Lastly, creating a culture of continual learning among our team to stay ahead of the curve, rather than hiring external consultants, has contributed enormously to our bottom line. Embedded in our business model, these strategies have supported our growth while maintaining frugality."

(4) Kanyarat, founder of Ling, sees the value of remote work and developing your own applications

Kanyarat Nuchangpuek, the visionary behind Ling, emphasizes the financial and operational advantages of remote work and developing custom tech solutions:

"For 2024, my top tip would be to leverage the power of remote work, as we do at Ling. A successful hybrid structure saves on office space and utility costs and opens up a global talent pool, reducing recruiting and salary expenses. For instance, we employ professionals from various continents, significantly saving costs.

Developing our proprietary tools and solutions instead of depending on expensive industry standard tools was another valuable route we took. We built our user behavior tracking system rather than using an expensive third-party service. This move saved us thousands of dollars monthly while providing valuable insights into our users' behavior. 

Businesses assessing their tech needs and creating appropriate solutions will set themselves up for sustainability and success."

(5) Lisa, creator of The Candida Diet, vouches for cloud-based storage and its cost-saving benefits

Lisa Richards, the creative force of The Candida Diet, endorses cloud-based storage solutions as a transformative step for slashing costs and enhancing business agility:

"I can vouch for the significant cost reductions brought about by cloud-based storage solutions: no longer do we depend on costly physical servers and data centers—demanding substantial initial investment and continual maintenance; these expenses formerly encompassed hardware upgrades, energy usage, and salaries for IT staff tasked with managing and securing our data infrastructure.

We've cut a swath through our expenses by transitioning to cloud storage—streamlining our budget considerably. No longer do we earmark funds for hardware acquisition and replacement; moreover, data management costs have plummeted. 

The provider's economies of scale afford us the luxury of paying solely for what we consume—an agility that has slashed up to 15% from our tech expenditures.

Switching to cloud-based storage not only offers direct financial benefits; it also amplifies indirect cost savings: downtime plummets owing to the reliability and redundancy of cloud services—this minimizes potential revenue losses and productivity drops. 

Moreover, the cloud's scalability permits on-demand adjustment of our storage needs, ensuring we never overpay for unused resources.

Cloud services integration has fostered a more collaborative and agile work environment; this shift, indirectly boosting our overall efficiency and output, represents not merely a cost-saving measure—it signifies a transformative step for our business model that positions us for sustainable growth in 2024 and beyond."

(6) Joe, Founder of Elevated Digital Marketing, emphasizes the importance of SEO content over paid advertising

Image of the founder of Elevated Digital Marketing

Joe Amaral, founder of Elevated Digital Marketing, champions the power of SEO and content strategy as cost-effective alternatives to traditional advertising:

"I believe one yet often overlooked method for saving money in 2024 is investing in a sound content strategy and focusing on organic search engine optimization (SEO).

A robust content strategy enables a business to generate qualified leads without extravagant spending on advertising. It's an approach that can yield long-term benefits while keeping expenses minimal. 

For example, at Elevated Marketing Experts, we have a service dedicated to creating keyword-optimized content and securing high domain authority backlinks. This strategy has played a significant role in boosting organic traffic to our website and securing high-ranking positions on search engine results pages.

Moreover, we also focus on local SEO to target specific geographic areas and cater to local customers. This strategy is not only cost-effective but also enhances a business's visibility to the local audience who are most likely to avail its products or services, thereby generating higher returns on the investment.

For a small business or a startup looking to save money, investing in such strategies can drastically reduce advertising costs while improving visibility and customer reach. Embracing SEO and a content-focused approach can be a game-changer for businesses in 2024, saving substantial resources while facilitating sustainable growth."

(7) Andy, co-founder of "Sell My House Fast," suggests reassessing your technology and telecommunications cost

Image of the founder of Sell My House Fast

Andy Kolodgie, a co-founder of "Sell My House Fast," highlights the importance of regularly reassessing technology and telecommunication use to cut costs:

"Another major way to save money is the assessment of your telecommunication and technological costs. Evaluate the costs associated with your phone and internet service. To get better deals, compare plans, bargain with suppliers, and think about bundling services.

Choose VoIP solutions instead of traditional phone systems, as they can be more affordable. Make routine audits of your technology spending. Analyze the costs of cloud services, software subscriptions, and other technology-related expenses. Get rid of unnecessary or redundant tools and look into more affordable options."

(8) Chris, founder of Nationwide United Auto Transport, advocates for renewable energy sources

Chris Estrada, CEO of Nationwide United Auto Transport, discusses switching to renewable energy sources like solar power as a cost reduction strategy:

"Utilizing renewable energy sources to power businesses could become increasingly lucrative by 2024. We're considering solar panel installation for our offices, a move that can reduce operational costs and double up as accountability toward sustainability."

Empowering your business: innovative cost saving ideas for 2024

In conclusion, the diverse insights shared by these forward-thinking business leaders offer a rich tapestry of cost-reduction strategies and cost-saving ideas vital for any business looking to thrive in 2024.

Embracing cost-cutting measures, these entrepreneurs have demonstrated how assessing and reducing overhead costs can lead to significant improvements in a company's financial health.

From rethinking business costs through innovative approaches like leveraging the global freelancer market to cut costs to adopting remote work policies to minimize business expenses, each strategy serves as a key lesson in fiscal prudence.

Furthermore, these narratives underscore the importance of a holistic approach to saving costs, where cost reduction isn't just about slashing budgets but also about investing smartly in areas that yield long-term benefits.

Whether it's through sustainable procurement, digital transformation, or exploring renewable energy sources, these leaders show that thoughtful cost reduction can drive not just savings but also sustainable growth and competitiveness in the market.

In essence, these cost-saving ideas aren't just methods to survive challenging economic times; they're transformative strategies that prepare businesses for a future where efficiency and innovation go hand in hand.


FAQs

How do you minimize cost and maximize profit?

To minimize costs and maximize profits, businesses can adopt strategies such as hiring freelancers for routine tasks, utilizing a lean software stack, implementing remote work policies, and focusing on sustainable procurement.

Other methods include developing proprietary tools, using cloud-based storage solutions, investing in SEO over paid advertising, reassessing technology and telecommunications costs, and considering renewable energy sources. These approaches can reduce operational expenses while maintaining or enhancing the quality of services and products offered.

How can a business save on costs?

Businesses can save on costs in several ways, as suggested by various business owners. These include:

  • Hiring freelancers for cost-effective and flexible staffing solutions.
  • Adopting a "lean software stack" approach, using open-source platforms, and negotiating annual plans for essential services.
  • Implementing a remote-first policy to save on physical office space and utilities.
  • Leaning into sustainability and ethical procurement, like direct sourcing from global artisans.
  • Developing in-house tools and solutions instead of relying on expensive third-party services.
  • Transitioning to cloud-based storage to reduce the need for physical servers and data centers.
  • Focusing on organic SEO and content strategy rather than spending heavily on advertising.
  • Regularly reassessing telecommunications and technology expenses, and considering VoIP solutions.
  • Exploring renewable energy sources like solar panels to cut down on energy costs.

What is an example of cost savings?

An example of cost savings is the adoption of cloud-based storage solutions, as vouched for by Lisa, the creator of the Candida Diet. This strategy eliminates the need for costly physical servers and data centers, reducing expenses related to hardware upgrades, energy usage, and IT staff salaries.

Cloud storage offers the advantage of paying only for the required storage space, leading to direct financial benefits like a reduction of up to 15% in tech expenditures. Additionally, it indirectly saves costs by reducing downtime and allowing scalable storage solutions, contributing to a more efficient and productive work environment.

share this blog

Joshua J. Brouard brings a rich and varied background to his writing endeavors. With a bachelor of commerce degree and a major in law, he possesses an affinity for tackling business-related challenges. His first writing position at a startup proved instrumental in cultivating his robust business acumen, given his integral role in steering the company's expansion. Complementing this is his extensive track record of producing content across diverse domains for various digital marketing agencies.