Cost Management typically comes into focus as a strategy only when it is an absolute necessity, unfortunately. Do not let that happen to your business.

Stringent Cost Management is an activity that every successful Business Owner partakes in on a constant basis. It is just as important as monitoring your revenues. After all, the difference between the two is what you get to take home at the end of the day.

Small Businesses do not have the luxury of big bank accounts, and generous
investors. The only way you will realize your true wealth potential is by carefully monitoring what comes in, and what goes out.

 

 

When you decide to start cutting costs in your business, you need to also undertake a Cost Management Strategy. Here is how you do it.

 

1 …  Start by getting an understanding of where your money is going.

2 … When you have a clear idea of what your expenses are, identify areas for cost cutting.

3 …  Create a budget to manage both fixed and variable costs.

4 … Establish clear protocols amongst your staff so that spending is tightly managed.

5 … Consistently identify cost management opportunities each time you review your finances. Revisit your banking and financing packages.

 

Continuously monitor the cost of goods and services: your suppliers and vendors.

Change your hours of operation to maximize existing costs.

Evaluate the structure you have set up for staff wages and compensation.

Lower rent or lease expenses by evaluating your location.

Ditch amenities that you and your staff do not notice or care about.

Decrease advertising costs or switch to lower cost strategies.

Look to lower your utility costs – and help the environment.

 

 

Cost Management is an ongoing responsibility for all Small Business Owners and Managers.

 

 

PS: This is a short overview of the things I discuss, look at, and reveal to clients, as a Business Coach … The “details” I have left out, would have you reading for an hour … So, I spared you on that … 🙂 …