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 that the business is not hurt by the attempts 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 programs -- cut these areas sharply or eliminate them all together. These are areas you probably would not have invested in at all if you had imagined the results you have 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 cannot 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 occurs.

The Chamber offers five college-caliber online courses in Management as part of our SmallBizU to help you succeed in your business. For more information, please visit our Web site at www.gainesvillechamber.com and click on “Chamber Services,” "SmallBizU" or call Tim Ledvina at 352.334.7105 x323.