Cost Cutting In The Right Place
Cost-cutting is a healthy business practice that should be routinely performed, even when your business is doing well.
When your business is in good shape, cost-cutting is relatively straightforward.
On the other hand, when your business is in trouble, and your financial crisis is growing, you begin to lose focus and start cutting every penny in every corner. With this approach, a lot of managers cut the costs in the wrong areas, sometimes even cutting the business lifeblood. They start cutting advertising and marketing costs, and guess what?
They cut their own throat and killed the resource that could bring their business out of its crisis.
Instead of cutting marketing and advertising costs, an effective plan would be to increase your budget in those areas by shifting the funds from other places where you can cut costs.
How is this possible? What do you do? Well, you’re in crisis mode. Step back, take a breath, and use the following as an example.
1) Figure out the problem that is causing your financial crisis and focus on solutions to eliminate the problem.
2) Change the approach.
3) Set up a campaign to implement this new approach that will draw in more business to increase revenue.