How to Cut Advertising, Sales and Travel Budgets

When the economy is slow, businesses have to cut back on budget items.

Cutbacks are common when the economy gets tough. A company may cut costs in one area to allow it more money to spend in another. You can reduce expenses and trim dollars off your company's budget in the areas of advertising, sales and travel. When sales are down, even large companies need to be more frugal. Keith McFarland, author of "The Breakthrough Company," advises companies to cut any expenses that are not involved in the 20 percent of the business activities that produce 80 percent of the revenues from its operations.

Instructions

Advertising

1. Discontinue the types of advertising media that aren't bringing in the customers, but continue to advertise consistently. To stay on budget, you may have to reduce the number of days per week or weeks per month that you advertise. Negotiate lower pricing in return for the promise of running regular ads. Even if you cut back, you may still get a discount if you contract for a certain amount of advertising.

2. Choose the media type that is most likely to reach your target market. Consider whether that particular form of advertising is the best to attract potential customers to your business. Advertise items that tend to be popular with your customers.

3. Take advantage of advertising discounts that some types of media offer. You may also get a discount if you are willing to pay for your advertising in cash.

4. Use social media as part of your marketing strategy. A vast number of potential consumers use social media networks. Social media are universally accessible, presenting you with additional opportunities to increase awareness of your company and the products or services you offer. Creating a profile on most leading social networking sites is free.

Sales

1. Focus on retaining your current customer base. This can be cheaper than looking for new business. Advertising campaigns directed at reaching more people may not necessarily bring you more customers. Consider rewarding loyal customers with discounts.

2. Look for low-cost suppliers or try to negotiate better terms with current suppliers. Get regular quotes from several different distributors. A current supplier's competitor may offer you a better deal.

3. Keep inventory to a minimum. Buy only as much as you can afford. You can always reorder an item or purchase a different product to sell. Refrain from taking loans with interest to buy excess inventory.

Travel

1. Booking connecting flights can often be less expensive than flying direct, although it will take you longer to make the trip. Another option is to book a cheaper flight to a city near your destination. Travel the remainder of the trip by public transportation. Find a bus line that charges reasonable rates for travel between major cities. Most bus companies offer free Internet access, allowing you to work while en route.

2. Save on cab costs by using free shuttle services. Most large airports provide free shuttle service to and from the hotel where you are staying.

3. Make the most of free refreshments, snacks and social events available during the breaks at conferences. If the hotel where you are staying offers a free continental breakfast, fill up before you start your day.

References

• "Inc."; Seven Smart Ways to Trim Your Company's Budget; February 2009
• "Inc.": Advertising Budget
• C and M Marketing and Communications; Top 4 Budget-Cutting-Edge Advertising Tips; Lisa Moscarelli
• Wisdom Talks: Five Tips to Be a Winner During Recession
• Vesta Digital; How to Cut Your Marketing Budget and Increase Sales; Andrea Watts; March 2011
• Open Forum; Eight Ways to Cut Business Travel Costs; Mike Michalowicz; April 2011