Be intelligent about where you cut costs - You might feel like you need to cut costs to the bone when debt looms over you, but sometimes it can be counter-productive. For example, consider the global economy. Some countries chose austerity because of excessive debt – yet they suffered with more sluggish economies than those that tried government stimulus exercises (at least in the short term). There are different schools of economic thought about this, but dont assume cutting costs will automatically save you money. Its where and how you cut costs that matters. For example, if you slash your marketing budget you might save a lot of money in the short term, but you will lose potential new clients. Cut your shop floor space and youll save rent, but reduce the range of stock you can display to customers. Make some of your staff redundant, and you wont be able to handle any larger contracts that come your way. “Its where and how you cut costs that matters. Cut when you need to, but do it sensibly. Before you start, use accounting software to forecast the financial impacts of different cost-cutting options. Trim the fat out of your business, not the muscle. boss5606
Posted on: Wed, 23 Jul 2014 21:10:29 +0000
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