Strategies for Reducing Project Costs

𝗩𝗲𝗻𝗱𝗼𝗿 𝗖𝗼𝘀𝘁, 𝗤𝘂𝗮𝗹𝗶𝘁𝘆, 𝗮𝗻𝗱 𝗧𝗶𝗺𝗲... 𝗖𝗮𝗻 𝘄𝗲 𝗵𝗮𝘃𝗲 𝗶𝘁 𝗮𝗹𝗹??? Ever heard of the Iron Triangle? (I'll give you a hint, it's not Bermuda's neighbor in the Atlantic Ocean!) Project Managment folks may be familiar with the Iron Triangle concept. Procurement peeps, we can also apply this to vendor contract negotiations. Envision a triangle with each corner representing cost, quality, and time. Changes to one corner usually impacts the others. Having flexibility in one corner, though, can strengthen the others. Use historical data for negotiation planning, making informed choices that balance the triangle based on your business needs. 𝗖𝗼𝗺𝗺𝗼𝗻 𝗻𝗲𝗴𝗼𝘁𝗶𝗮𝘁𝗶𝗼𝗻 𝗹𝗲𝘃𝗲𝗿𝘀 𝗳𝗼𝗿 𝗜𝗿𝗼𝗻 𝗧𝗿𝗶𝗮𝗻𝗴𝗹𝗲 𝗼𝗽𝘁𝗶𝗺𝗶𝘇𝗮𝘁𝗶𝗼𝗻: ➜ Tiered pricing models for greater flexibility. ➜ SLAs with penalties/ incentives to encourage vendors to exceed performance targets, minimal cost, maximum impact. ➜ Paying early to secure discounts. ➜ Efficiency gain clauses, typically requiring YOY gains for the duration of the contract. ➜ Right to audit clause to ensure compliance w/ minimal cost (if any). ➜ Flexible termination language & transition support. Ensures your pocketbook and operations don't suffer if things go south. 𝗔𝗻𝗱 𝘁𝘄𝗼 𝗯𝗼𝗻𝘂𝘀 𝘁𝗶𝗽𝘀: 1. If you're constantly spinning your wheels with subpar vendor quality, rework costs are likely eating into your expected ROI. Keep a close eye on total cost of ownership, the vendor may be costing you more headache than it's worth. 2. Investing in vendor relationships is key. Strong partnerships foster flexibility and innovation, translating to better quality at reduced costs. Win\ win all around! --------------------- What other strategies do you use to balance cost vs quality? Let me know in the comments! 👇

Layoffs aren’t the only way to save money. Most companies are sitting on six figures of hidden waste—and they don’t even know it. According to Gartner, companies waste an average of 20% - 30% of their expenses due to inefficiencies, redundant systems, and poorly managed processes. Before you think about cutting people, fix the systems first. Here’s a smarter way to cut costs: Think in 5Cs. 1 - 𝐂𝐚𝐧𝐜𝐞𝐥 Audit all the tools, subscriptions, and services you're barely using. If it doesn't bring clear results, it's time to pull the plug. 2 - 𝐂𝐨𝐧𝐬𝐨𝐥𝐢𝐝𝐚𝐭𝐞 Find overlaps in your tech stack, vendors, and processes. One tool, one platform, one bill—less chaos, lower costs. 3 - 𝐂𝐨𝐧𝐭𝐫𝐨𝐥 Put simple limits in place. Set thresholds for spending approvals and track anything over $500 before it snowballs. 4 - 𝐂𝐨𝐥𝐥𝐚𝐛𝐨𝐫𝐚𝐭𝐞 Bring in fractional experts instead of hiring full-time for specialized needs. Pay for outcomes, not hours. 5 - 𝐂𝐨𝐧𝐭𝐢𝐧𝐮𝐨𝐮𝐬 𝐈𝐦𝐩𝐫𝐨𝐯𝐞𝐦𝐞𝐧𝐭 Set a quarterly reminder to review expenses, renegotiate contracts, and audit your processes. Cost-cutting isn't a one-time thing—it’s a habit. 𝐐𝐮𝐢𝐜𝐤 𝐰𝐢𝐧𝐬 𝐭𝐨 𝐬𝐭𝐚𝐫𝐭 𝐬𝐚𝐯𝐢𝐧𝐠: → Audit subscription creep → Renegotiate vendor terms → Rethink your office space needs → Streamline your software stack → Review marketing ROI closely → Extend payment deadlines → Automate where you can → Hire a fractional instead of a full-time → Strengthen expense approval rules → Double down on high-impact projects If you optimize systems, you can save big, without losing your best people. Agree? What’s one cost-saving move you think every company should prioritize but often overlooks? ♻️ Share this with a founder who needs to hear it. ➕ Follow Donny Mashiach for more insights on scaling and financial growth.

Cost-cutting has a bad reputation. Most leaders think layoffs are the answer. But $100K+ in savings is hiding in plain sight. I’ve led dozens of cost-reduction projects and saved companies millions. Here’s what I’ve learned: You don’t need layoffs to cut costs. The proof? Companies waste 30% of their budget long before even looking at headcount. Here’s the cost-cutting framework that saves big—without layoffs: The 4Cs of Strategic Cost Reduction: 1/ Cancel: ↳ Audit unused tools, licenses, and low-ROI expenses. ↳ Cut what doesn't deliver 2/ Consolidate: ↳ Merge overlapping tools, processes, or contracts. ↳ One tool, one vendor, one contract 3/ Control: ↳ Create spending guardrails: limits, approvals, and audits. ↳ Track expenses over $500 to stop leaks early. 4/ Collaborate: ↳ Use fractional experts or outsourcing for specialized work. ↳ Pay for outcomes, not hours. 10 Proven Tactics to Cut Costs and Save Big: 1/ Audit Quarterly Subscriptions 2/ Renegotiate Vendor Contracts 3/ Reimagine Office Space 4/ Simplify Tech Stack 5/ Audit Marketing Spend 6/ Extend Payment Terms 7/ Automate Manual Tasks 8/ Use Fractional Experts 9/ Tighten Expense Policies 10/ Focus on High-Impact Areas The truth about strategic cost-cutting? You can save more by optimizing systems than By cutting your greatest asset—your people. What’s your favorite tactic—or what would you add? ♻️Share to help other leaders And follow Mariya Valeva for more