You Can't Cut Your Way to the Bottom Line
by Rick Leibowitz With all the talk about the economic slowdown in the news, businesses are scrambling to find the best strategies to deal with the challenges of increases operating costs (mostly due to inflation in the energy & commodities markets) and anticipated decreases in consumer spending. Business articles talk about how now is a good time for small business owners to tighten their belts and watch their discretionary spending. I’ve personally read a number of articles that suggest cutting advertising budgets and hours of operation as a means to cost savings. However, I caution all small business owners to think carefully about the consequences of cost cutting before you take action. Developing a contingency to deal with the economic slowdown is a very smart strategy for every small business owner, but the key to a good plan is to dedicate time to forecast the expected results of each decision. Another thing to keep in mind is that it is highly unlikely that your business ca