Cost Driver ((full)) -

If you try to manage the cost (salaries) without managing the driver (tickets), you will always be behind.

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

The culprit isn’t a villain. It’s a . If you try to manage the cost (salaries)

When you stop staring at the expense report and start staring at the activity that creates the expense, you stop being a victim of your costs. You become the manager of them. The culprit isn’t a villain

You dig into the expenses. Rent is flat. Salaries are steady. But somewhere, a line item labeled “miscellaneous operating costs” has doubled.

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.