How to Grow Your Business- For Entrepreneurs

Chapter Eleven

Cut your outgoings

He who does not economise will have to agonise.

Confucius

Profit not thrift

There are two ways to increase your profits: sell more or spend less. While ideally you will do both, it should be noted before we go any further with this chapter that cost-cutting is very rarely the way to grow a company. Indeed, it can often produce the opposite result.

As we have seen throughout this book, growth requires investment. Investment in yourself, in your staff and in sales and marketing. Cutting back in any of those areas is likely to reduce the growth of your company.

This is not to say that you can’t spend your money ...