Be careful reducing costs

Managers love to reduce costs. It’s a way to save money and to increase profitability.

The thing to be aware of is, if not done carefully, reducing costs can prove to be fatal to your organization.

You can reduce costs by getting rid of marketing and sales. Costs go down but long term, so does all revenue.

You can reduce costs by getting rid of research and development. Costs go down but be prepared for no future improvements.

You can reduce costs many ways but make sure the savings short term aren’t offset by failure long term

Have a great day!

Lawrence

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