Related: 8 Unconventional Ways to Cut Costs in Your Business
Don’t cut where it counts
Most businesses will go wrong by cutting investments that actually support long-term growth, like marketing, client delivery support or team culture, when they start feeling the financial pinch.
It’s critical to examine the ROI of each cost instead of panic-cost cutting. If your assistant is saving you 10 hours a week and you’re using that time to close deals, that has its own return. If your operations manager is helping you retain key clients, that’s a return. Make your best estimate of what that return is to help guide you in making that comparison. For your assistant, count the value of the deals they helped you close. For your manager, consider how many key clients they’ve helped re-sign.
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