Calculated Cost-Cutting to Maximize Profit Without Sacrificing Performance
Introduction: In our last Business Bite, we explained 5 Strategies to Drive Revenue Growth, and now you’re going to learn 5 Strategies to Cut Costs. Let’s begin by explaining the difference between strategic costs and non-strategic costs. Strategic costs clearly bring in business and improve bottom line, such as salespeople, advertising that works, and commercializable R&D. Non-strategic costs are all the other costs, such as admin, managers, rent, software subscriptions, consultants, lawyers, accountants, computers, office supplies, etc. Great organizations will outspend competitors on strategic costs (as % of revenue) in good times and bad times. This requires intelligence and judgment.
