In business, I see a similar situation where small business owners want to cut expenses to earn a profit instead of finding solutions to increase revenues.

It’s almost as if business owners are saying “I own the business but I have no ideas how to increase sales so I will take the easy route by cutting expenses”. The profit equation is: Revenue – Expenses = Profit.

Yes. There are two ways to generate profits. You can cut expenses to make a profit. Or, you can increase revenue to earn a profit.  Guess which method to earn a profit is more difficult? You guessed correctly. Cutting expenses is the easy way to earn a profit. But cutting expenses has some damaging effects.