“I know how to say NO to new things coming up, but most of our troubles are from decisions we have already made,” Byron confided.

“Each year, don’t you review your decisions about what you will and will not do, including the cost structure for each of those decisions?” I asked.

“You mean, our budget?”

I nodded. “Yes, your budget. When you look at each budget item, whether it is a direct cost or an indirect cost, you have to ask this question.

“Is this absolutely necessary?

“If the answer is NO, get rid of it, dismantle it, idle it.

“If the answer is YES, move to the next question. What is the absolute minimum necessary to perform this function to our spec.?” -TF
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This conversation with Byron is essential. By this time next year, the US will be in the thick of a downturn. There is still time to adequately plan your company’s scenario to adjust.

Note that if your industry is connected to residential housing, you are already in the thick of it.