One of the biggest ways companies can improve cash flow as well as the bottom line is to cut costs. Yet cutting costs without impeding growth can be a delicate balancing act. In order to navigate the tight-rope here are our top 5 tips for effective cost cutting:
Engage employees
If you keep a dialog open, employees are on the front lines and can point to some of the best cost cutting measures.
Focus on variable costs
Make a list of which costs absolutely must stay so that you don't end up cutting something you need, which could cost you more in the long run.
Don't cut valued perks
While taking away those unnecessary perks may seem like good decision-making, it can adversely affect morale and decrease productivity.
Utilize free ad mediums
Advertising is an important way to attract new business and it doesn't have to cost an arm and a leg. Look into opportunities for free advertising in order to complement your current ad campaigns, but make sure they don't compromise the integrity of your brand or appear in places you find questionable.
Value Experience and Talent
Cutting out costly employees might seem like a quick way to fix the budget, but this often entails spending time on choosing and training new hires that don't have the same experience and talent.
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