Washington, DC, January 07, 2014 --(PR.com
)-- According to Donna Marie Thompson, CEO of Expert Profit Solutions in the Huffington Post, “When is a good time to start cutting costs? It is time to explore four cost-cutting strategies that are being deployed by companies all around the world, small businesses, and your competitors. As a small business owner you can follow their lead to boost your profits as well. There is no one-size-fits-all approach. But one of the key themes in this research is to not wait until the ship is sinking before plugging your profit leaks.”
In her small business blog, Donna Marie Thompson explained: “The first Cost-cutting Strategy is by Expense Category. This is the most common method small business owners use to cut their excess costs. It's simple, the information is generally readily available, and the cost-cutting options are easily found. Common areas for expense category cuts are: space, telecom, vehicles, utilities, and printing; they might be different in your business. The analysis begins with your current expenses and a view toward a more suitable level for those expenses.”
Dr. Thompson continued: “The second Cost-cutting Strategy is by Product. The second strategy focuses cost-cutting attention on a specific product or division. In this approach, all related expenses are on the table for consideration. The European company BASF recently underwent a major analysis to reduce fixed costs at its specialty chemicals business even as sales and profits increased in other areas. A small business owner could explore: purchasing, materials, design, production, and delivery, among other areas tied to a product.”
“No matter how profitable your small business is there are ways for you to cut excess costs and boost profits to your bottom line. Excess costs exist in 99% of small businesses. Select one of these areas to begin your own cost-cutting exercise in your business right away,” concluded Dr. Thompson.
Check out the blog for all four strategies and leave a comment at http://www.huffingtonpost.com/donna-marie-thompson/4-winning-cost-cutting-st_b_4182296.html
Donna Marie Thompson, PhD is an acclaimed platform and cruise ship speaker, a two-time best-selling author, and a former Director at PricewaterhouseCoopers Consulting. She is a small business profitability specialist who created The Profit PyramidTM and runs 4-week mastermind training programs for successful small business owners and entrepreneurs. Apply now to be considered if you run a profitable small business under $5 million in revenues.
Check out for Donna Marie Thompson's new book: Peak Profit Potential on amazon at: http://www.amazon.com/Peak-Profit-Potential-Program-Business/dp/1936621053/ref=sr_1_3?s=books&ie=UTF8&qid=1387047705&sr=1-3&keywords=donna+marie+thompson
And get your own copy of the free Special Report "3 Profit Pitfalls and How to Avoid Them" at http://www.ExpertProfitSolutions.com