Spending = Strategy
(For anyone just tuning in, this email is part of a multi-day series we're doing on Cost-Cutting. Check out the first post if you want to start from the beginning!)
Strategy is a fluffy word that gets tossed around a lot.
But here's a tactical way to think about being strategic:
What will you over-invest in?
You cannot spend minimally everywhere if you want your business to win.
Cash and time are the fuel of your business.
To win, you need to do more with that fuel than your competition.
You need to use your resources more smartly;
Spending generously where it matters and saving as much as you can where it doesn’t.
Your thesis on, “Where it matters,”
Is your strategy.
For example,
If you’re a services business that’s raking it in because you employ the rarest, most talented folks in the biz, spend generously on salaries and benefits.
If the key to your startup thriving is unbeatable foot traffic to your stores, never move to a sub-prime location to save a buck on rent.
If your tech product is winning because it’s the fastest in the market, pour everything you can into staying fast.
Your cost-cutting homework for today:
Look at your goals and values from yesterday. What are the 1-3 most important things that your business needs to maintain or achieve in order to win in your market?
How will you spend generously (in money or in time!) to gain or retain your advantage in these areas?
Once you've picked your areas of focus, hit Reply and let me know your spending strategy!
Tomorrow is the Friday Finance Break! So, we'll pick up the next segment of our cost-cutting course on Monday.
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