Spend Money to Cut Costs

Setting a Budget (1)The most unexpected advice related to cost overruns is that you can’t be afraid to spend money. Penny pinching isn’t always the answer. Spending more money may help to “stop the bleeding” related to certain cost overruns. Don’t simply approach a cost overrun situation from the viewpoint of how to cut costs. Think outside the box and approach the problem from the viewpoint of, “What if we spent more in x in order to avoid repeated cost overruns in y?”

On a related note, don’t be afraid to spend money on the right employees. A resourceful employee can be well worth their salary. Potential employees can be brought in both to make money and also to manage costs. In the case of a cost overrun, a financial analyst may be helpful to come in and fully analyze your cost structure to see the real problem area.

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