Cutting costs without hurting growth

Cost cutting works best when it is targeted, not across the board.

Where to look first

• Subscriptions and software no one uses any more.
• Supplier contracts that haven't been renegotiated in years.
• Rent and space you don't fully use.
• Rework and errors — the cost of doing things twice.
• Late-payment fines and penalties that good processes would avoid.

A simple method

1. 1List all expenses for the last 12 months by supplier.
2. 2Sort them from largest to smallest.
3. 3For the top 20, ask: do we need it, at this price, from this supplier?

Cuts that often backfire

• Stopping all marketing — sales fall a few months later.
• Cutting the people who serve your best customers.
• Delaying maintenance until equipment breaks.

Protect what drives growth

Separate costs that keep the lights on from those that bring in revenue. Cut the first carefully; invest in the second wisely.

Our process optimization and internal audit services often uncover savings that pay for themselves.