There's a time to frugal, and a time not to be.
In my personal life, I go out of my way to keep my expenses low, low, low. I mean, how many people do you know that unplug their refrigerator and freezer when they go out of town to save electricity? In business, there are some costs that can be minimized and others that can't.
- If the expense doesn't contribute to our core focus, it can be cut. For example, I have to figure out how we will be doing payroll. I plan to choose the absolute best value package. That doesn't necessarily mean the cheapest package. What it does mean is I'll be driving the Chevy, not the Cadillac.
- For costs that can help us increase our revenues, I'll make the necessary investment. For example, happy employees will treat customers better. I'm not looking to cut costs by treating my employees like they can be replaced at any time. I plan to pay my employees a fair wage, and incentivize them with spot bonuses when they do a great job, and quarterly bonuses when the company does well, among other things.
- Another cost I'm not looking to cut is quality. Our product will be the best it can be - no shortcuts.
Being a frugal miser means cutting out all the fat. You never slice into the muscle - that would hurt!