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Cost Driver Review

So, what’s your biggest cost driver this quarter? Go find it. Then go reduce it. Enjoyed this? Share it with a founder who just asked “where did all our cash go?”

Want to lower costs? Don’t slash headcount. Reduce the driver. If purchase orders drive your accounting costs, stop creating a PO for every pack of sticky notes. Automate or batch the process. cost driver

If you don’t know what your cost drivers are, you aren’t managing your business. You’re just reacting to it. So, what’s your biggest cost driver this quarter

Traditional budgets just add 5% to last year’s numbers. Driver-based budgeting asks: “If we increase sales by 20%, how many more customer service calls will that generate?” You can now predict costs before they happen. cost driver