REWORK

Your Competition is Your Costs

Nov 27, 2024

Discover why focusing on cost management can be more crucial than competing with others in business. Learn strategies to analyze your expenses and the value they bring. Explore the benefits of ditching a physical office space for greater flexibility and savings. Delve into the secrets of maintaining a lean workforce to boost performance. Finally, uncover hidden costs in SaaS and how reviewing them can lead to substantial savings. It's a fresh take on building a profitable business by looking inward.

29:39

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Quick takeaways

Focusing on internal cost control rather than external competition allows businesses to position themselves for sustainable success amidst industry giants.

Understanding customer segments and managing personnel costs effectively can prevent overlooked expenses from negatively impacting overall profitability.

Deep dives

Focusing on Costs Over Competition

Businesses often get caught up in worrying about their competition, when the real challenge lies within their own cost structures. Instead of fixating on rivals, it's crucial for companies to evaluate their own expenses and operational efficiency. For instance, even small companies can thrive when they control their costs effectively, as demonstrated by the example of Hey, which serves tens of thousands of paying customers successfully against giants like Gmail. By emphasizing internal financial health rather than external competition, businesses can better position themselves for sustainable success.

Intro

2min

Rethinking Competition and Cost Management

14min

Reassessing Office Value and Embracing Flexibility

5min

Navigating Company Size and Hiring Practices

2min

Uncovering Hidden Costs in SaaS

6min

Remaining profitable in business is a simple equation — sales revenue exceeding operating costs. In this episode of The REWORK Podcast, 37signals’ co-founders Jason Fried and David Heinemeier Hansson explain why controlling costs should be a bigger focus than what your competition is doing. They share some simple strategies for analyzing costs and share why operating without a formal office space might be worth considering.

Key Takeaways: