In an economy like this, it’s prudent for all managed service providers to look at your expenses to determine where you can cut – even if you aren’t in any sort of financial trouble. It’s much more fun to be proactive about this rather than being forced to be reactive!
But cutting expenses needs to be done thoughtfully and strategically, otherwise you risk “cutting to the bone” as they say, and starving your company of the resources it needs to be successful.
How to do this? I read a newsletter article from the folks at the E-Myth today and thought is perfectly captured the key questions you need to ask yourself before cutting an expense:
- Will you reduce your ability to compete effectively?
- Will you reduce the quality of your product?
- Will you reduce your client’s experience with your company?
- Will you reduce the good will you have worked so hard to create?
If the answer to all of these questions is NO, then you can probably cut the expense and feel good about it. If the answer to any of these questions is YES, you’d better be very careful.
You can read the full article here.
Mike Cooch
PS -Anyone that has spent any time with me talking about business knows that I’m a huge fan of the E-Myth. If you haven’t read it yet, pick up a copy today – The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It
