Are you looking to lower your costs and wondering what to cut or not cut?

We understand that as a business owner panic sets in when you are in a slump or payment slows down. So the natural tendency is to cut out any expenses you can, but cutting the wrong expenses can end up costing you!

Here are 3 cuts that will hurt you –

THESE ARE NOT EXPENSES, they are investments.

Cost Cutting - Savings

  1. Marketing and Advertising

    1. Many businesses cut this first, but if you spend some time with your marketing professional and share what you need they can help you to lower your costs without hurting your business.
    2. Do your research and know what is costing you too much, and where you can save some money.
    3. DO NOT eliminate all your advertising and marketing efforts. Sometimes it takes a little while for everything to penetrate to public and if you cut it all now you may miss out on valuable customers and essential income.

  2. Training

    1. You and your employees need to always be bettering yourselves or you will not grow. I am sure you have heard the saying If you are not moving forward you are moving backwards.
    2. Having a well-trained team can save you time and money.
    3. Training can help keep your team on track and create a positive environment that develops a stronger committed employee.

  3. Cutting Salaries

    1. When you cut your best employees’ salaries you are subtly telling them that they are not worth what you are paying them.
    2. This is the time to get them involved, not push them away. Do not waste time trying to hire a replacement when you already have someone that is worth the money.

When you put money into your staff you have happy long term employees and they produce better work and provide far better customer service. When you put money into marketing and advertising you produce more customers, higher income, and less worry about your month to month costs. As I said above these are investments, they may pay out over time and not be as noticeable in your monthly cost; but they could be the difference between being open today and closed tomorrow. Don’t cut what you need most.

Next month we will be sharing some areas that cutting costs actually can help save you money and make you a more sustainable business in the long run.

– Diane Economaki