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A checklist for strategic cost cutting

Looking for smart ways to trim spending at your business? Here’s advice on how to get started.

Q: What are some key ways to cut costs for my small business?

A: When a business owner asks this question, my first response is, “Is this what’s most important right now?”

To figure out the answer, I’ll want to know if there’s been an in-depth analysis of the company’s financial statements and key performance indicators, and the relative profitability of products or product groups, along with customers or customer groups, salespeople or sales channels. I ask for this information because the need – as opposed to a measured and rational desire – to cut costs is an indication that something’s not working with the business model.

Don’t get me wrong, though – reducing the amount of money flying out the door is a good strategy, and once I’m sure that slicing the fat from a budget makes sound business sense, I’ll use the following checklist to start tackling costs.

…to read this article in full, visit leading US entrepreneurial resource, Entrepreneur.com

Entrepreneur.com

Entrepreneur.com

Entrepreneur Magazine has been inspiring, informing and celebrating entrepreneurs since 1973. Entrepreneur.com offers real solutions to the challenges faced by entrepreneurs, including tips, tools and insider news to help build – and grow – businesses.

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