1.     The first step to finding out where to cut the “fat” in your budget is discovering which things your clients value the most and which they value the least.  For example, a client may value the fact that you are able to source quality talent quickly.  Well, if you get most of your quality candidates via referrals you may want to cut back on some advertising costs, since it is not the advertising producing the most return on investment.  On the other hand, you clients may not really value the very expensive glossy marketing material you distribute.  Can you consider using a less expensive grade of paper or printer?

2.     The second step for recruiters who want to cut costs is assessing which expenses are unnecessary because new technology has made it cheaper to get the same thing done using a machine or software.  For example, some independent recruiters maintain office space despite the fact that it is perfectly acceptable to work out of your home.  Eliminating costly office space does not impact quality of service.  Even if you need to meet with a client or candidate at some point, there are office spaces available which you can rent by the hour or day.

3.     Finally, recruiters should explore how they waste time.  Since time is money, reducing your time expenditure on tasks which don’t generate income could help to reduce costs and even improve quality by delegating those tasks to someone else or using technology to complete the task in a more efficient manner.