March 3, 2009
Cost cutting takes discipline and skill to ensure that the business is not hurt during your efforts. Here are a few strategies to consider during this trying time: 1) Separate all expenses into two categories: 1) Must-haves and 2) Nice-to-haves. Cut the nice-to-haves as much as contractually possible. 2) Further focus on areas where cost cutting will not stop recovery or affect critical current programs. Cut these sharply or eliminate them entirely. These are areas you probably would not have invested in at all if you had imagined your current results. 3) Select activities that must be retained but can be delayed or postponed in an inactive state for a specific period of time. Can a planned maintenance or upgrade expense be delayed without hurting sales? 4) Determine where money can be spent more effectively in the areas that cannot be eliminated. 5) Consider investing in new or existing projects that can benefit the cost-control program and be of continuing value in a recovery. After all, you are planning for a recovery, so you want to be positioned well when it occurs. 6) Your Chamber membership is a must-have! As your source for business news, networking opportunities and educational programming, the Chamber is positioned to help you weather tough times as economically as possible.The Chamber offers five online college-caliber courses in Management as part of SmallBizU in an effort to help you succeed in your business. For more information, please visit our Web site at www.gainesvillechamber.com, “Chamber Services,” "SmallBizU" or call Tim Ledvina at 352.334.7105 x323.