Increase profit by cutting costs from "summary" of Profit First by Mike Michalowicz
To increase profit, many business owners believe they need to cut costs. In theory, this makes sense. If you spend less money, you end up with more money in your pocket, right? But there is a flaw in this logic. Cutting costs does not guarantee an increase in profit. In fact, it can often have the opposite effect. When you focus solely on cutting costs, you are not addressing the root cause of your profit problem. You may be sacrificing the quality of your products or services, which could lead to a decrease in sales. You may also be cutting costs in areas that are essential to the growth and sustainability of your business. This short-term thinking can have long-term consequences. Instead of cutti...
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