Under"2. Cash: Make targeted cost cuts and shore up cash flow."
"The key word here is “targeted” – indiscriminate cost cutting can affect your current customer base, de-motivate staff and conflict with medium to long-term goals."
The challenge is to get the balance right between short-term crisis management of your cash-flow and damaging the medium-term.
An example would be a retailer who cut staff costs in the run up to Christmas, their most profitable period. Sure, it saves the costs in November and December, but kills the business profit-line in January and February, not to mention the longer-term goodwill lost when customers cannot find what they want to purchase or get served at the checkouts during the busy period.
Of course, employ flexibly when business is under threat, but save money where your business is least vulnerable.
ICF Accredited Personal & Business Coach
Management Trainer & Business Consultant
Super Successful Manager-Home
Gloucester, United Kingdom
8th December 2008 From United Kingdom , Leeds