The economy is causing many entrepreneurs to reevaluate their budget and cut costs on processes that can be altered or eliminated altogether. While reducing costs when necessary should be part of any successful strategic plan, it is important to make the right choices when budgeting. Getting rid of some essential processes needed by the business could be dangerous. Some cost-cutting errors could anger member of the client base, frustrate current employees and make the firm look less attractive to both potential employees and customers. Entrepreneurs can use the tips below for guidance when reducing costs at their enterprise.

Maintain employee benefits
One of the top reasons employees choose to stay at their employer is because of the perks provided by their company. Employees who feel more valued by the company tend to not only work harder, but also remain happier in the office. It may be fiscally reasonable to eliminate or downsize the amount of benefits given to staff, but entrepreneurs should be wary of making major benefit-cutting measures, as it will more than likely cause a drop in staff morale. By using business planning software, entrepreneurs will be able to budget for six months to a year down the road to get a better understanding of what types of benefits they can provide to their employees.

"That loyalty will resonate from the inside out," Carol Roth, a former investment banker, told Entrepreneur Magazine. "And happy employees keep your customers happy. It is all about the customer because if you don't have customers, you don't have a business."

Keep customers happy
Businesses that slack on customer service will often be the ones that fail or have trouble reporting a profit. Making customers happy allows entrepreneurs to form a better, stronger and more reliable customer base. Entrepreneurs should make sure customers are happy no matter the cost, even if it means cutting back the budget of other processes. Throughout the budgeting process, entrepreneurs need to evaluate their strategic plan to ensure customers will be treated correctly at every part of the supply chain.

"If you are cutting back in areas where your customer is going to notice, that is a mistake," Roth told the magazine. "Your best opportunity is to maintain or beef up in the areas that are going to impact the customer."

Continue marketing efforts
Every entrepreneur needs to make sure they have enough resources in their budget to bring in new customers. Marketing efforts are imperative to help expand the client base and spread the word about new products and/or services offered by the business. Even when the strength of the economy is in flux, entrepreneurs should continue their marketing efforts to remain competitive in the marketplace.

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