Top 7 Things Not To Do To Manage Cost Saving

Nearly every business I know says they "run a tight ship" in terms of costs, but actually many of the costs have not been reviewed for years. Cost control might be dull and uninteresting (unless you are in finance) but it can make a huge difference in your profit. Just make sure you don’t fall into these traps.

1. Don’t be Short Term
   
   Never do something short term that will cost you more in the long term. Believe in yourself and your business and make cost decisions that are right long term.
   
2. Don’t follow competitors
   
   Never spend on things because all your competitors do – if you do, you’ll get the low margins they have.
   
3. Don’t compromise service
   
   Never cut costs that compromise your service or delivery to the customer. This is an exercise in improving profit not destroying your business.
   
4. Don’t wait for a crisis
   
   Don’t wait until you are in a crisis – or you will not have time to do what you need. Doing this now will stop you needing to take such drastic actions in the future
   
5. Don’t expect your team to volunteer savings
   
   If you want to cut budgets and costs, the last people to ask are the ones that own those budgets. They will, of course, tell you they have the best deals – and that there are no slush funds left!
   
6. Don’t hide behind purchasing
   
   If you want to cut your costs, use experts to help you get the best deals – but don’t hide behind them and blame them for how your business behaves. You have to know the deals that are being done – and the impact of those on your business.
   
7. Don’t take too long
   
   There is nothing worse than a business that needs to cut costs dragging it out. Cut fast and deep – and then get on with running your business.