If revenue falls short by 10% next year, what is your first action?

If revenue falls short by 10% next year, what is your first action?

• A. Cut ineffective programs.
• B. Increase dues immediately.
• C. Expand conferences.
• D. Hire additional staff.

Answer: (A)

When revenue is below plan, the first priority is to tighten the cost base by removing or suspending programs that aren’t delivering meaningful value. This action reduces expenses without risking essential operations, helping stabilize cash flow while you assess priorities and alternatives. Cutting ineffective programs directly improves the bottom line and preserves resources for core activities. Raising dues immediately would burden members and may reduce participation without solving the underlying shortfall. Expanding conferences or hiring more staff would add fixed costs, making the financial shortfall worse. So the sensible first step is to cut ineffective programs to align expenses with available revenue.

When revenue is below plan, the first priority is to tighten the cost base by removing or suspending programs that aren’t delivering meaningful value. This action reduces expenses without risking essential operations, helping stabilize cash flow while you assess priorities and alternatives. Cutting ineffective programs directly improves the bottom line and preserves resources for core activities.

Raising dues immediately would burden members and may reduce participation without solving the underlying shortfall. Expanding conferences or hiring more staff would add fixed costs, making the financial shortfall worse. So the sensible first step is to cut ineffective programs to align expenses with available revenue.