A trend I have noticed is those who cut all costs necessary to operate their businesses are financially in worse shape than those who have methodically evaluated where to focus cost cutting.
I call these “knee-jerk” blanket cost cutting decisions Emotional Management and will suggest that everyone be wary of it. Are you cutting costs because of a fear of the unknown – the length of the recession, the direction of the economy, the ability for you to make a sale next month? Or are you cutting costs because you are determining which costs are necessary for survival, which are necessary for growth, and which costs are “lifestyle costs? Food for thought.
By Adam Peterson