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Is cutting costs in other areas rather than payroll really the best choice for all? Everyone has an important function, even if they’re not directly employed by you. This CFO for hire has a different perspective on what is really best.
I often hear business owners looking to cut costs, but they don’t want to cut payroll. They try to protect their employees for fear of being a “bad business owner that lays off employees.” So they cut other costs. Now don’t get me wrong, it’s great to see a business team working together toward a common goal and trying to stick together through ups and downs. But if you think you are doing a good deed by cutting “vendor expenses” instead of your employees, I’d suggest reevaluating that way of thinking. When you cut any expense, while YOUR employee may not be affected, someone else’s employee is affected.
EVERYTHING you pay for is paying for SOMEONE to do SOMETHING.
Examples of typical expenses – ultimately they are all paying someone to do something:
By cutting costs, you are going to affect someone’s job one way or another. But cutting costs is a necessity in business, and puts pressure on the economic system to get things done better and less expensive. So simply focus on cutting costs in areas where the money you are spending isn’t wise spending.
While laying off an employee may be painful for both you and the employee, it frequently allows the employee to reflect on his / her next endeavor and find one that he / she will flourish at. And if we are all in positions where we flourish, everyone is better off!
Download the free ebook to find out the 10 best ways to reduce small business costs.
Confused about what a CFO for hire is, check out this link for more details. http://blog.barbacfo.com/cfo-for-hire-what-the-heck-is-that-and-why-should-you-care
