As you reflect on the recent holiday season and look
to the months ahead, it’s easy to lose your bearings. Cutting costs is without
a doubt one of the best ways for your business to make it through these
challenging times, but a slash-and-burn approach could do more harm than good.
In Entrepreneur.com’s “Recession Cost-Cutting No-Nos”, experts discuss the measures to avoid.
Some
cost-cutting strategies to ensure your store thrives:
Don’t
Scapegoat Marketing: While many businesses look at marketing
as the best place to cut back, Ann Handley, chief content officer at
MarketingProfs, disagrees. “If business is slow and you’re reigning in your
plan to get your name out there, it means fewer leads, less business and,
ultimately, less income,” she says.
Use
the scalpel, Not the Ax: Virgin Money USA CEO Asheesh
Advani says business owners are likely to ask if they should cut marketing,
overhead or staff. He says the answer is a little of all three, but be careful
not to cut what will protect you on the downside. Cost savings shouldn’t come
at the expense of executing a long-term vision.
Communicate
With Staff: Penny Morey, a human resources
consultant, says poor communication can lead to employees panicking, talking
about the bad news and looking elsewhere for jobs. She suggests regular
meetings to keep staff focused on what they need to do to help the company
succeed. She notes that even if the circumstances are bad -- like having to cut
back on staff or freezing compensation levels -- forthright communications are
the best method of damage control.
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