Here are cost cutting ideas you can try right now, right away, to make a difference in your bottom line.
I’ve borrowed these ideas from the book Double Your Profits in 6 Months or Less, by Bob Fifer. I keep this book nearby at all times, and you should too.
Cost Cutting Idea #1: “Every cost is up for grabs”
Cost cutting is as much about your mindset as your process.
Bob Fifer urges you to ask yourself this question: “If I eliminated this cost, would I really lose revenue or profits? How and Where? If you can’t figure out how and where, then you don’t need the cost.”
Cost Cutting Idea #2: “Cut costs first, ask questions later”
Most of us are too timid when it comes to cutting costs.
As Bob Fifer puts it, the common thinking is, “let’s not cut Cost A unless we’re sure it’s the right decision.”
Instead, Fifer says this thinking is backwards. “It should be, let’s not keep spending Cost A unless we’re sure we need that cost.”
Cost Cutting Idea #3: “You need a ‘bad guy'”
No one likes to be the bad guy. It’s human nature to want to be liked by our boss, our peers and co-workers.
However, to cut costs in a meaningful way, you need a bad guy.
This person can be an outside consultant with the appropriate authority or specially appointed ‘cost-cutting guru’ in your brewery.
Regardless of what you call it, the bad guy’s job is to set aside the emotion and eliminate costs that need to be cut.
Cost cutting isn’t easy or pleasant, but it needs to be done.
Try out these three ideas in your brewery. Your income statement will thank you.
Is cutting costs a financial challenge facing your beer business?
If so, the Beer Business Finance Association may be a profitable resource for you.
Our mission is to help your beer business improve financial results through peer to peer networking, transformational financial training and on-going support.
Learn More with a 15-Minute Call
Pick a convenient time here on my calendar.
I’d love to learn more about your business, and how the Beer Business Finance Association can transform your financial results.
Yours in Financial Training,
Kary
P.S. Watch the 2-minute video overview of the Beer Business Finance Association member benefits.
