Often, in times such as these, many advisers and business experts suggest you cut any and all costs without regard to either short term or long-term consequences.  They often have this advice when an owner is looking for help in selling the company, reasoning that a sophisticated buyer won't notice the company is missing key pieces to produce prosperity.

Please do not make the mistake of listening to or thinking that the companies with the lowest expense rate will be the most successful.  If this were true, the sports team with the lowest payroll would always win the championship.  This almost never happens and very few people would consider this a good strategy.  Why they think they are going to defeat their competition with the least amount of resources is puzzling at the best.

The key to getting through tough times is the same as the key to success in any market; committing your resources to the strengths you need to maintain and grow your market.  All companies do this by operating successfully in three segments, either as a commodity company, growth company, or niche company (Niches do not have to be small, just well defined).

A commodity company is successful through purchasing components that anyone else can purchase, manufacturing their product in a way that many others can do, and selling it at a market price.  Companies are successful through superior manufacturing techniques, successful procurement strategies and low overhead, such as SG&A and R&D.

Growth companies on the other hand, cannot thrive without a strong R&D department, strong marketing and strong finance departments to facilitate the rapid growth.

Look at why your customers deal with you.  Is it high service, quality products, low costs, flexibility in services or product offerings?  What ever that is, make sure that your resources are always committed to that strength and do not heed calls to cut your strategic advantages in a broad brush cost savings program.

A B2B CFO can help you identify the advantages you possess and how to feed those strengths in any economic cycle.