We live in a time where expert advice is seemingly everywhere. As helpful as that can be, it can also unintentionally make things ridiculously expensive. Maybe you just started a cafe and are trying to decide on the best espresso makers to buy. You go on Reddit and end up getting twenty-six convincing comments that you need to triple your budget or don’t buy anything at all.
Reuters highlighted a survey by 12 Federal Reserve banks, which found that 77% of firms flagged rising costs as a major challenge. Moreover, almost 40% were in over $100,000 in debt.
It’s incredibly easy to let your expenses accumulate, and with a business, it can feel like money is trying its best to leave your hands. Thus, it’s imperative that you know how to save every penny. Let’s jump right in.
#1. Stop Overhiring
So many small business owners make the mistake of thinking they need to employ specialists for every need. This mistake happens because they fail to assess time cost vs. impact. If managing your Instagram page only takes 20 minutes a day and it drives 5% of your sales, hiring a manager is a bad move.
Likewise, with responsibilities like bookkeeping and general management, you really don’t need a dedicated employee. You’ll definitely want them later when you grow; however, if you’re still small, you can save the money by using free resources like spreadsheet templates and open-source expense tracking software.
This mistake of hiring too many and too early is caused by the same mindset that leads to layoffs in large companies. CNBC recently highlighted research by Challenger, Gray & Christmas that over 700,000 jobs were cut in the first five months of 2025. This is an 80% increase compared to the first five months of 2024.
#2. Don’t Waste Money on Web Development
We get it. Having a beautiful website can be an asset to any business. You read reports by McKinsey & Company about how small businesses are only 50% as productive as large companies and how tech adoption is a key differentiator. This can cause you to feel like you are justified in overspending on things like your website.
However, if you’re still small and aren’t swimming in excess funds, think twice about a high-end website. Web developers are expensive to hire, and it isn’t uncommon to spend thousands of dollars for a custom website.
As Hocoos notes, these days, there are AI services that will build websites for a fraction of the conventional cost. All you’d need to do is answer a few questions about what you want, and it does the rest.
Sure, you may not have all the bells and whistles that come from creating a website from scratch. That said, until you can afford to splurge, go for the financially responsible option. Rely on free social media pages and run a simple and cost-efficient website. Similarly, be prudent when it comes to branding-related expenses.
Businesses in this niche are clever and can be very convincing about how essential good branding is. While that’s true, it still doesn’t justify a $500 logo when your revenue stream is still unsteady. Hiring a freelancer and having them come up with something is probably going to be much more cost-efficient.
#3. Avoid Committing to Long-Term Costs
When you’re trying to save money, there’s always a temptation to find the best deals. After all, it makes perfect logical sense. You want to cut expenses, so find good deals, right? Well, it’s not so simple. Oftentimes, attractive price structures for services you need tend to be locked in long-term arrangements.
This becomes risky if you’re still trying to test out your business model. There’s a good deal of risk when committing to a 12-month SaaS contract or a 5-year office lease. Sure, the terms would be better than a month-by-month contract or a 1-year lease. However, if there were unfair terms you missed, you are now locked in.
If you signed that contract with the hope that sales would pick up and it doesn’t, you’re not in a good place. Soon, you’ll be dipping into your emergency fund, and that’s a path you don’t want to go down.
All things considered, keeping expenses low is one of the most important objectives for a small business. You’d be surprised how often the difference between staying operational can be just $100. Keep your spending modest in this growth stage, and you’ll thank yourself when you can comfortably budget for even trivial expenses.