How to cut costs

Cost cutting is much more than just slashing costs.

You need to sort out your core expenses from your non core expenses. Core expenses are items like rent, wages, electricity etc anything that is an absolute necessity to running your business.

Non core expenses are things like marketing, sponsorship, events,etc anything that are not a necessity.

So when looking at cutting cost, your first port of call should be your non core items. When you have reviewed them and slashed, slashed,slashed you can then move on to review your core expenses.

The simple aim is to review your core expenses. By rights there should be no where to cut cost here as you should already have the best deals possible in these areas.

Now the art of cutting costs is to not go over the fine line. There is a fine line that your business needs to break even or make a profit and if you cut too far you will cut your profit.

The art of cutting costs is to first to find out which cost you can reduce that won’t effect the operations of your business. This is the fine line.

Remember to first look to non core expense that you can cut first and and then look to reduce other expenses and core expenses. Be careful not to go over that fine line.

If you need help you should contact us for guidance and help.