Great Ways for Business Owners to Save Money

By Michael D. Rubin, CEO & Founder · Updated September 2026 · 726 words

The savings that matter are the ones that last: supplier terms renegotiated, software and subscriptions you no longer use canceled, work moved in-house or outsourced where it is genuinely cheaper, and waste removed in a way you can prove. For an owner who may sell, each dollar of lasting savings is worth several dollars, because buyers price a company as a multiple of its earnings.

As an illustration only: if buyers value a company at three to seven times adjusted EBITDA, the range MDR & Associates most often sees for companies with $3 million to $100 million in revenue, then a permanent $50,000 reduction in annual costs could add roughly $150,000 to $350,000 to the price, all else being equal. Adjusted EBITDA is the company's operating earnings before interest, taxes, depreciation and amortization, restated to remove owner-specific and one-time costs. The word permanent is doing the work in that sentence.

Audit the costs that renew automatically

• Software and subscriptions. List every tool the company pays for, who uses it and how often. Cancel duplicates and unused seats, and watch for price increases at renewal.
• Insurance. Have your agent shop the coverage at each renewal and check whether your limits still fit the business.
• Banking and card processing. Merchant fees and account charges creep up quietly; ask for a review.
• Telecom and utilities. Old phone lines, unused data plans and outdated contracts are common leftovers.
• Vehicles and fuel. Track usage per vehicle; an idle truck still costs insurance, registration and maintenance.
• Rent and space. If you have more space than you use, a sublease or a smaller footprint at renewal may help.

Use digital tools where they save real time

Invoicing, scheduling, payroll, timekeeping and inventory tracking can often be automated, saving staff hours and reducing errors. Test a tool with a small team before rolling it out, and check the total cost after the introductory price ends. Be careful where the customer is involved: replacing a person who answers the phone well with an automated menu can save a salary and lose sales. Measure the effect, not just the saving.

Negotiate, and use the free help available

Ask your main suppliers for better terms at least once a year. Consolidating purchases with fewer vendors, committing to a volume, paying faster in exchange for a discount or simply getting a competing quote often lowers prices. The answer is sometimes no, but asking costs nothing. The SBA, local banks and business groups also run free or low-cost training on finance, hiring and operations, which can replace some of what an owner might otherwise pay a consultant for.

Outsource or keep in-house: decide role by role

Bookkeeping, payroll processing, IT support and some marketing tasks are commonly outsourced by companies that do not need a full-time person. Work that holds your customer relationships, your technical know-how or your quality standards is usually better kept inside. Buyers look closely here: they want to know that the people who make the business run are employees who plan to stay after the sale, not contractors who could leave with the knowledge.

Revisit these choices every year or two. A job worth outsourcing at one size may be worth bringing in-house as the company grows.

Cuts that quietly lower your sale price

Some savings look good on this year's profit and cost you more when you sell. Buyers and their accountants are trained to spot them:

• Deferring equipment repairs and replacement, which a buyer will simply subtract from the price.
• Holding key employees' pay below market until they leave, often at the worst moment.
• Cutting the marketing or sales effort that fills next year's pipeline.
• One-time cuts made just before a sale, which a buyer will reverse when normalizing earnings.
• Savings that depend on the owner doing unpaid work a buyer would have to hire someone to do.

How savings show up in a valuation

When MDR & Associates recasts a company's financials for buyers, it separates lasting savings from one-time items and owner-specific costs. The difference matters, and our answer on how add-backs affect a private company's value explains how buyers judge those adjustments. A formal business valuation shows which costs are pulling value down, and pre-exit consulting gives you time to fix them and show a full year of results. To start with a quick range, request a free valuation snapshot.

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Questions owners ask next

How long do savings need to show in the numbers before a buyer credits them?

Buyers trust what they can see in the monthly results. Savings in place for a full year are easy to accept; savings made a few months before a sale will be questioned and may be discounted. Keep the contracts and invoices that prove the change is permanent.

Should I cut staff to raise profit before selling?

Only if the role is truly unnecessary. If the work still has to be done, by you or by overloaded employees, a buyer will add the cost back when valuing the company, and turnover or slipping service can cost more than the saving. Cuts that weaken the team usually lower the price.