When Should You Start Cost Cutting In Your Business

Craft Maker Pro » When Should You Start Cost Cutting In Your Business

Is your business struggling? Or do you just want to see options where you can lessen your costs without sacrificing the quality of your work or laying off an employee?

When Should You Start Cost Cutting In Your BusinessWhat can we learn from the colossal amount of failure with small business that we can apply to our own business aspirations?

According to Bloomberg, 80% small businesses fail within the first 18 months. While most small business owners focus on increasing sales, lowering expenses is also vital when trying to achieve or maintain profitability.

So what is ‘Cost Cutting’?
Cost cutting is the measure implemented by a business to lessen its expenses and improve profitability. Cost cutting measures may include laying off employees, reducing employee pay, closing facilities, streamlining the supply chain, downsizing to a smaller office or moving to a less expensive building or area, reducing or eliminating outside professional services such as product photographers and seo specialists, etc.

However, cost cutting is not just about firing employees and getting cheaper materials. It’s different if you are in the handmade business world since majority in this niche are composed with small and home businesses.

For instance, you need to review your suppliers.

Review your suppliers at least once a year. Don’t forget the golden rule of purchasing: Get three quotes for anything you buy. That’s enough to give you a feel for the market without getting caught up talking to lots of suppliers. Some of the most rewarding savings can come from reviewing products or services you purchase monthly.

You can review these areas by setting some time aside once every few months. Alternatively, find someone who can investigate for you. I know one handmade artist who offers her younger sister a percentage if she could find a better deal for her business.

Check this video from Neil Patel to see Where (and When) To Cut Costs When Your Business is Struggling:


Now, what have you learned with this post? Do you feel the need to cut costs in your business? What are you planning to do? Please let us know in the comments below.

Gary Capps
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