Instead of reducing yourcompany’s overall budget by incremental amounts, try a new approach to costcutting, one that is more expansive in nature. Reduce the budget to anextremely low level all at once and require all of your employees to stick toit.
Theoretically, this willforce your staff to find creative ways to operate within a set budget. It mayeven provoke them to look for entirely new ways of doing certain things, ratherthan just cutting back a little to meet a smaller budget cut.
This strategy can help toeliminate waste and redundancies in any business operation. When cash flows aredown, this approach can help boost them.
One caution, though: Choosewisely where to make your cuts. Don’t cut where it really hurts – in quality orcustomer service – just to save a few dollars. You’ll lose a lot more in thelong term.
– Source: Tire ReviewBusiness Toolbox