Making decisions on cutting costs
Updated: Apr 20, 2020
One of the biggest considerations many business owners have at the moment is where to cut costs, and how deep to cut. ✂️
Map out your organisation and the size of overhead you need to survive at reduced turnover. Do you have the work pipeline and/or cash buffer to survive like this for prolonged periods? 🗺 Can you deliver your service with 6 people not 8? Can the team deliver the same level of service?
What intelligence have you picked up on your competitors? Might it actually be a good time to go on attack (not defence)? Pick up good people they have let go? ⚔️
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Balance this new org chart with your plans for the future and your future superstars. Like a home haircut, once you’ve cut the damage is done so make sure you don’t ruin your longer term plans for a short term saving.
Consider outsourcing too. You might be able to get the service you need (covering everything from sales, strategy, marketing or management) for a fraction of what it’s currently costing you in overhead. ✅ Re-quote your existing service provider and compare this against new options ✅
Deciding on the best options to choose is a difficult process. Collect all of the information you can, write it down, and then make an informed balanced decision.