But sometimes managers and owners lose sight of the long-term and become fearful of spending money on important facets of the business. The first area that some owners and managers look to in tightening the belt is marketing. Why? Because many of the expenses associated with marketing are discretionary and can be quickly cut. In most cases, this is the last place companies should be cutting expenses unless they are spending money on tools and activities that provide little or no return. A focused, well constructed marketing effort is critical to the success of most businesses. To isolate promotional and sales costs and cut them in the interest of saving money will very often do long-term damage to the business. It can also cause short-term problems. There are other areas where cutting expenses often does more harm than good. Customer service is key to the success of a business. To make cuts that negatively impact customer service is often a mistake. There are other areas where cutting expenses can have a detrimental impact on a business. Before making cuts, carefully study the potential impact of your decisions.
