Top 7 Things Not To Do To Manage Cost Saving
By Kate Marsden
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Nearly every business I know says they "run a tight ship" in terms of costs, but actually many of the costs have not been reviewed for years. Cost control might be dull and uninteresting (unless you are in finance) but it can make a huge difference in your profit. Just make sure you donít fall into these traps.
- Donít be Short Term
Never do something short term that will cost you more in the long term. Believe in yourself and your business and make cost decisions that are right long term.
- Donít follow competitors
Never spend on things because all your competitors do Ė if you do, youíll get the low margins they have.
- Donít compromise service
Never cut costs that compromise your service or delivery to the customer. This is an exercise in improving profit not destroying your business.
- Donít wait for a crisis
Donít wait until you are in a crisis Ė or you will not have time to do what you need. Doing this now will stop you needing to take such drastic actions in the future
- Donít expect your team to volunteer savings
If you want to cut budgets and costs, the last people to ask are the ones that own those budgets. They will, of course, tell you they have the best deals Ė and that there are no slush funds left!
- Donít hide behind purchasing
If you want to cut your costs, use experts to help you get the best deals Ė but donít hide behind them and blame them for how your business behaves. You have to know the deals that are being done Ė and the impact of those on your business.
- Donít take too long
There is nothing worse than a business that needs to cut costs dragging it out. Cut fast and deep Ė and then get on with running your business.
Want help improving your profits? FREE reports to help Small Business Owners stop falling for the myths and start understanding the real rules of profits. Download instantly for fast profit results! Kate Marsden is The Profit Mechanic and gives resources, tools and support to Small Business Owners to improve their profits. Read more about The Profit Mechanic here.
Article Submitted On: May 15, 2012