September 2, 2008

The Biz Wiz

Our business is experiencing difficulties and we need to cut costs; what are some guidelines for doing this successfully?

Cost cutting takes discipline and skill to ensure the business isn't hurt while you're trying to save it. Here are a few strategies to consider during this trying time:

- Separate all expenses into two categories: 1) Must haves; 2) Nice-to-haves. Cut the nice-to-haves as much as contractually possible.

- 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 wouldn’t have invested in at all if you had imagined the results you’ve seen so far.

- Select activities that must be retained but can be delayed or cut back into an inactive state for a specific period of time. Can a planned maintenance or upgrade expense be delayed without hurting sales?

- Determine where money can be spent more effectively in areas that can’t be cut back.

- 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're planning for a recovery, so you want to be positioned well when it happens.

The Chamber offers five college online caliber courses in Management at our SmallBizU to help you succeed in your business. For more information go to our website at www.gainesvillechamber.com and click on “Chamber Services” and then click on SmallBizU or call Tim at 334-7105 x 323.