A Cunning Cost Cutting System for the Busy Business Owner

Smart small business owners are finding ways of cost cutting in their businesses. You don’t have to be struggling to think cost cutting is a good idea in this recession. If you want to thrive not just survive, here’s a system for cutting costs with just a little time.

These days it’s cool to be a cost cutter. Profitable business owners are cutting costs as prevention against possible decreases in sales so they can preserve cash. Struggling business owners, already seeing sales decreases, are cutting costs to keep going. Either way, here’s an easy, foolproof system.

Spend just 10 minutes a day and contribute thousands to your bottom line.

  1. Create an excel spreadsheet of all known recurring and expected one-time costs. Separate out monthly, quarterly/yearly, and emergency spending expectations. Don’t try t make it a budget; just write down recurring items and their approximate monthly cost.
  2. Write a goal. Here’s an example. “I want to cut $2,000 a month from my operating costs by Jan 31.”
  3. Think of 3 specific items you believe have immediate cost cutting potential. Write them down on ‘My Cost Cutting Success List’. This will be your focus list. Write them as an action verb and cost cutting target amount. Example: “Install thermostatic timers in warehouse to save $150/month. “
  4. Create a list of 10 items you are thinking about cutting after your initial focus list. Do not number or prioritize this list, just put down your ideas.
  5. Post your ‘My Cost Cutting Success List’ where you’ll see it every day. Put it on your desktop, on your refrigerator, in your day timer.
  6. Put time on your calendar to make it happen. Schedule yourself a half-hour twice a week to take action.
  7. Work on one item on your focus list at a time. Make the phone calls, research lower cost alternatives, make a decision. Drive an item to completion.
  8. Delegate where you can. Maybe an employee can research alternative credit card processors and send you the links or make a file. Perhaps a spouse can call and cancel an ineffective advertising service.
  9. If you get stalled, work on the second item. Sometimes you have to send in something by mail or wait a week for a response. Don’t get stalled; that’s why there are 3 items on your focus list.
  10. When you finish an item, put a checkmark next to your completed item. Update the amount saved if different from your initial projection.
  11. Relish the accomplishment for a day or more. Don’t take the item off the list for a little while. Reward yourself with a feeling of accomplishment by seeing your success the next few times you look at your list.
  12. After a few days, Move the Completed cost cutting item down to the Cost Cutting Success List. This is important; you’ll see your efforts pile up so your small efforts will result in big results.
  13. Pull an item from your wish list that you think has the biggest, easiest to implement cost cutter. Write it on your focus list.
  14. Add items to your wish list as you read, talk to friends, think about your cost cutting progress. Now that you are in action on cost cutting, you’ll have ideas showing up in your life. Just jot them down on your ‘My Cost Cutting Success List.’
  15. Get a partner. Most exercise programs are more successful with a partner. Find someone to bounce ideas with, share your success, and get inspiration. Call them and share a success or get encouragement.

In just 10 minutes a day, you can cut your business costs by thousands of dollars. This system is foolproof! Call me if you want help getting started or for a copy of your ‘My Cost Cutting Success List’ Worksheet.

 Merra Lee Moffitt, AWMA, CMFC, CFP® spends all day, everyday helping business owners reach their financial dreams and goals by capturing business profits. She can be found at, 888-920-2030 or by email at merralee@captureprofits.com.

This entry was posted on Saturday, November 22nd, 2008 at 8:34 am and is filed under Collect Cash. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “A Cunning Cost Cutting System for the Busy Business Owner”

  1. 11 Ways Small Businesses Conserve Cash in a Recession - Capture Business Profits Says:

    [...] a cost cutting program with a top 3 list.  For a simple system, see A Cunning Cost Cutting System for the Busy Business Owner.  This way you’ll consistently cut costs without losing focus on building your customer base and [...]

  2. Raising Service Prices in a Recession - Capture Business Profits Says:

    [...] several recent blogs I’ve written on that subject. If you haven’t read them, check out: A Cunning Cost Cutting System for the Busy Business Owner  or Cutting Costs Now: 9 Hot Areas for Creative Small Business [...]

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