Smart Ways To Cut Costs Without Cutting Corners

Keeping a business afloat often comes down to managing costs wisely. The ICSC Small Business Center has highlighted entrepreneurs and experts who have been through economic ups and downs, and they all emphasize that cutting costs doesn’t just mean slashing expenses. Rather, it’s about making smarter choices, negotiating better deals and finding new revenue opportunities — without sacrificing quality or customer experience.

Negotiate Everything

“At the end of the day, everything is negotiable — you just have to ask,” pointed out Ambro Blackwell, a commercial financing expert and author of the book Small Business Loans Made Simple: Revealing Secrets and Strategies for Established Businesses. “Many vendors offer discounts or flexible terms, but they won’t always advertise them upfront. If you don’t ask, you’re leaving money on the table.”

Building a strong business that attracts multiple suppliers is key, Blackwell said. “If both Company A and Company B offer the products or services you need, that’s great. But if Companies C, D and E also want your business, you have real leverage. Negotiation isn’t just about lowering costs — it’s about securing better terms that work in your favor. And remember there’s no downside to asking. Even if a vendor says no today, they might be willing to negotiate when business slows down or their priorities shift.”

MORE FROM BLACKWELL: Demystifying Small Business Loans

Find New Revenue Streams

In 2008, Lindsay Fork purchase La Jeune Mariee, an 800-square-foot special-order bridal boutique in suburban Columbus. As new styles arrived every season, Fork found herself overwhelmed by sample inventory. Despite holding flash sales and organizing a massive sample sale with other local bridal stores, “I found that the inventory just piled up. I couldn’t get rid of it fast enough,” she said.

“I needed a store that was essentially a sample sale all the time. At the time La Jeune Mariee didn’t have as wide of a price range as we do today. It was really focused on the $3,000 to $5,000 price point. Not everyone could afford that, so I knew there was a market and demographic for off-the-rack dresses at a lower price point.” So Fork conceived of a new store that sold sample dresses year-round at much lower prices and in 2011 opened the first Luxe Redux Bridal, in the same building as La Jeune Mariee. The network she’d built in the bridal industry proved invaluable for inventory. “My friends were seeing what I was doing with Luxe, and they were like: ‘I have a bunch of extra stock and inventory, too. Can I send you my dresses?’ I knew I would figure it out because it meant diversifying our inventory and getting new designers. That’s kind of where everything started snowballing.”

Use AI To Save Time and Money

The term “AI” conjures images of science fiction robots for some, but at its core, AI “is the science of making machines smart,” said Marketing AI Institute chief content officer Mike Kaput. AI tools, which use vast amounts of existing data like texts, videos and codes — can produce original, tailored content. “If I were a small business owner or leader, I’d start by listing everything I do daily, weekly, monthly and quarterly. Then, I’d estimate how much time each task takes. Once I have that breakdown, I’d ask myself: ‘Can this be done more efficiently?’ If the answer is yes, it’s time to explore AI tools that could save time.

Here are three questions that can help you evaluate whether a task can be improved or made more efficient using AI tools:

Is it data-driven?
If a task relies on data, like generating weekly reports, AI can streamline the process.
Is it repetitive?
If you follow the same steps repeatedly, AI can automate and optimize those workflows.
Is it predictive?
Many business decisions involve forecasting outcomes, such as selecting the most engaging article headline. AI can analyze patterns and improve predictions.

Build Strong Vendor Relationships

Since co-founding Silver Diner in Rockville, Maryland, in 1989, chef Ype Von Hengst has helped redefine the classic American diner. Alongside his business partner, Bob Giaimo, Von Hengst set out to create a space that balanced nostalgia with innovation, serving high-quality food in a welcoming, family-friendly environment. He attributes much of his success to the relationships he has cultivated. “Over the past 14 to 15 years, the biggest thing we’ve done is work closely with local farmers and purveyors to source meat and other resources,” Von Hengst said. “All of our meat is antibiotic-free and because I buy in bulk I can get it at a very reasonable price. Over my 35 years in business, I’ve set up personal relationships with all my vendors. They know they might have smaller profit margins on my orders, but the trade-off is consistency. This collaboration has been key to making it all work.”

Streamline for Efficiency and Savings

Restaurant advisor Kyle Inserra works with entrepreneurs and restauranteurs who are thinking of starting or expanding their restaurant concepts. Among his many tips, the vice president of real estate at Pivotal Growth Partners suggests paring things down to keep expenses in check. “For restaurants right now, I think [owners] have to try to be as cost sensitive as they can. While passion for their cuisine is important, the ability to cross-utilize their ingredients should be top of mind. We’re seeing so many concepts, even dessert focused ones, trim down their menus for that reason.”