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Vinu: Manu, I want to control expenses, but I’m worried it might slow down my business growth. How do I balance this?
Manu: Good concern, Vinu. The goal is not to cut costs blindly—it’s to control waste without affecting value creation.
Vinu: How do I identify which expenses to cut?
Manu: Divide expenses into three categories—
Essential, Growth, and Waste.
Manu: Sure.
Salaries ₹4 lakh and rent ₹80,000 → essential.
Marketing ₹2 lakh → growth expense.
Unplanned travel ₹70,000 or unused subscriptions ₹30,000 → waste.
Manu: First priority, yes. Then optimise essential costs and evaluate growth spends based on returns.
Vinu: What do you mean by optimising essential costs?
For example, renegotiating rent from ₹80,000 to ₹70,000 or improving staff productivity.
Vinu: And growth expenses like marketing?
Manu: Track returns.
If you spend ₹2 lakh on marketing and generate only ₹1.50 lakh additional contribution, it’s inefficient.
Vinu: Many times, expenses increase as business grows. Is that normal?
Manu: Yes, but they should grow slower than revenue.
If sales increase by 20% but expenses rise by 35%, profitability will fall.
Manu: Either overspending in the name of growth or over-cutting and damaging future potential.
Vinu: Any simple control method?
Manu: Fix a monthly expense budget—say ₹15 lakh.
Any expense beyond that should need a strong justification.
Vinu: Final takeaway?
Manu: Smart businesses don’t just grow—they grow efficiently, by controlling costs without compromising future opportunities.
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