As I continue developing relationships with more and more business clients, I learn a lot about the successes and failures of each of those companies. More specifically, I have learned that being proactive with your cost management can help you maintain expenses before they get out of control.
One thing most of my successful business clients share in common is that they understand how to manage costs before they start cutting corners. They understand the value of the services they pay for by conducting a cost-benefit analysis (CBA) to determine if they are maximizing the benefit against the cost. However, for those services that don’t hold a lot of weight (value) they understand how to control that cost by replacing it with something better. They also understand the importance of marketing, and how to effectively create a marketing budget & campaign to generate a return on investment (ROI). Understanding how to manage costs, they also understand that time management is even more important, so they delegate tasks to qualified individuals/solutions to help free their time and focus on what pays them the highest return on what they do best (also known as the 80-20 rule)
DON’T BE REACTIVE:
On the other hand, most of my unsuccessful clients start by cutting costs, and the first thing they cut is usually their marketing budget. They also tend to overwork themselves by wearing all the hats in their business such as owner, manager, business development officer, sales rep, book-keeper, payroll manager, legal officer, director, marketer, banker,…and the list goes on. By wearing all the hats, time passes quick, and the end of day results are not satisfying.
Whether you are currently proactive or reactive in cost or time management, it is understandable that is it easier said than done, especially when cash flow is tight. However, there are ways cost management can be better managed freeing up more time to do high priority tasks. I have helped many of my own clients find better ways to:
- Manage their spending habits,
- Shop for financial services that offer better value & save time,
- Tailor specific solutions to meet their cost & time management needs,
- Connect them to resources, networks, and contacts to help their business move forward.
I have shared some links below that can help you expand on this topic further. If you want to learn more about how I can help you as I have helped others, please contact me directly.
Business Banker, Business Coach & Consultant
(Riverside & San Bernardino County)
Connect on LinkedIn
Helpful Links For More Information:
- Cut? Contain? Taking a “management” approach to costs
- The culture of strategic cost management
- Apply the 80/20 Rule to Everything
- 5 Ways To Control Costs
- Cost-Benefit Analysis