📄ONE-PAGE LESSON 6
Key Points You’ll Learn
✂️ Learn how to identify and reduce unnecessary costs
🔍 Understand the balance between cutting expenses and maintaining growth
✅ Apply efficiency strategies to improve profitability without harming operations
Why This Matters
Every dollar saved goes straight to your bottom line. Yet many businesses either ignore cost control or cut recklessly, harming growth.
Smart cost management isn’t about slashing expenses — it’s about spending wisely, eliminating waste, and making your resources work harder.
Efficient businesses are more competitive, more resilient, and more profitable.
Core Insights
- Fixed vs. Variable Costs – Know which costs are essential (rent, salaries) and which scale with activity (supplies, marketing). Focus adjustments on variable costs first.
- Eliminate Waste – Look for recurring expenses that don’t create value (unused subscriptions, excess office space, overstocked inventory).
- Improve Processes – Streamline operations: automate repetitive tasks, digitize paperwork, and standardize procedures. Efficiency cuts costs without layoffs.
- Invest in Efficiency – Sometimes spending reduces long-term costs (e.g., upgrading to energy-efficient equipment, better software, or staff training).
- Measure & Monitor – Use simple KPIs like cost per unit, labor productivity, or overhead percentage to track efficiency gains.
Quick Exercise
1) List your top 10 monthly expenses.
2) Circle any that do not directly contribute to revenue or customer satisfaction.
3) Identify one recurring cost you can reduce or eliminate this month.
4) Identify one process you could streamline with technology or better workflow.
Call to Action
Cost control isn’t about being cheap — it’s about being smart. The more efficient your business, the more profit you keep and the stronger your competitive edge becomes.
Face it. Cut waste. Build strength.