6 Cutthroat Strategies for Making More Money in 2025, According to Business Leaders Six business leaders share their most effective solutions for cutting costs and making the most of margins.
By Frances Dodds Edited by Frances Dodds
This story appears in the January 2025 issue of Entrepreneur. Subscribe »
These days, everyone is feeling the squeeze. Marketing budgets are getting slashed, prices are being reassessed, and anything superfluous has to go. How do you walk the line between maintaining quality and cutting costs? Here, we talked to six business leaders on their top strategies for making a profit in these tough economic times.
1. Find pricing options for everyone
"Our challenge is finding the right balance between our daily customers, who might get a cold brew every afternoon, and those who view us as a 'treat' — coming in for our boba or jelly sips. For everyday visitors, we're very mindful of keeping costs reasonable. For those treating themselves, we have premium offerings like Stuffed Sips, which come at a higher price point due to extra ingredients and customization. So far, this approach has helped us navigate rising costs while still offering value." — Andrew Moger, founder, Cool Sips
2. Cut underperforming products loose
"Given rising costs across the board, we've taken a hard look at our product mix and the inventory turn and margin for every item we carry. It's hard to say goodbye to products you've invested time, energy, and enthusiasm in creating, but if it isn't selling fast enough, it can't stay. That frees up the cash and keeps our remaining assortment fast-turning, productive, and fresh. It also frees up the working capital to keep dreaming up and building innovative new items." — Kate Lubenesky, former president, W&P
Related: 8 Unconventional Ways to Cut Costs in Your Business
3. Diversify and optimize your supply chain
"Over the past 18 months, we've seen the costs of essential materials rise by 15% to 20%. Our solution is diversification in sourcing, seeking out local and national suppliers. This helps us reduce dependency on any single supplier. Internally, we've also conducted a thorough review of our operations to identify where we can cut costs without sacrificing quality. This included optimizing packaging and processes in our distribution centers, and investing in technology that improves supply-chain visibility." — Donna Letier, cofounder and CEO, Gardenuity
4. Make strategic hiring decisions
"Payroll is our most significant investment, and it's critical that this spending drives direct revenue growth. We've enhanced the productivity of our sales and support teams through targeted training and technological improvements, minimizing time spent on nonessential tasks. Strategic hiring ensures that every new team member contributes significantly to our sales or customer satisfaction." — Chad Stark, CEO, Stark
Related: Have Great Ideas? Here's Why the Best Thing You Can Do Is Give Them Away.
5. Offer creators what big businesses can't
"Consumer businesses are increasingly shifting their ad spend toward creator partnerships. But the rising costs of these collaborations make it nearly impossible for early-stage startups like ours to compete with the massive ad budgets of larger companies. We've addressed this by structuring some of our partnerships to include equity, and winning over creators with a product they're genuinely excited to use. A great example is our partnership with comedian Trey Kennedy, now our 'Chief Dad Officer.'" — Kevin Lavelle, cofounder and CEO, Harbor
6. Lean into profitable business models
"Customer acquisition costs on platforms like Meta are increasing, while channels like influencers and affiliates are becoming more saturated. So we've leaned into a subscription-first approach that concentrates our marketing spend during peak months and reduces it during slower periods. This helped improve our average order value and cost of goods sold, which enabled us to diversify our marketing channels and launch new products that cater to different dietary preferences and lifestyles." — ISMAIL SAlhi, cofounder, Wildgrain
Related: 12 Cost-Cutting Strategies to Help You Thrive in a Slow Economy
