“Cost of doing business” is a dangerous phrase. Simply put, cost of doing business is the cost a business must incur to function—nothing more, nothing less. Unfortunately, people often justify the wasteful spending of unwarranted luxury as a cost of doing business.

You hear it all the time:

We all drove to the meeting separately. Now, we get gas mileage. All’s well, just another cost of doing business.

I fly business class. It’s just a cost of doing business.

Instead of tossing the cost to the gods of doing business and bathing in the pool of wasteful spending, employees should ask a few simple questions:

1. Is this the lowest cost?
2. Is the expense really necessary?
3. Would I do this if I owned the business?

1. Is this the lowest cost?

If there is a way to lower the cost, then take it. Any chance to lower costs is a bump to your business, bump to your career, and bump to your survival. This is where business analysis shines. Identify the lowest cost and attack with vigilance.

2. Is the expense really necessary?

If the expense is not absolutely, live or die necessary, then throw it out with the trash. There is no room for wasteful spending. For instance, is a Business Class ticket necessary for business travel? No, it is not. Business Class should be renamed Vacation Class and only used for vacations; otherwise, it is a wasteful expense of luxury and untold amounts of businesses fall prey every year. Though these decisions are typically the purview of business management or are part of the business process, it is still the duty of all employees to eliminate unnecessary expense.

3. Would I do this if I owned the business?

All employees should act like owners. And as the owner, would you approve this expense for an employee, unit, division, etc.?

If you cannot answer the above questions with a resounding YES, then stop and rethink your decision before you fall victim to danger of “cost of doing business.”