what is a shortfall
However, diagnosing the nature of the shortfall is critical to prescribing a cure. A business shortfall can be related to a complete economic downturn, an industry-wide downturn or changes in an individual company's business operations. A company can use several strategies to stop the shortfall and get back on solid ground. This is often a company's first wave of response to a shortfall. To cut expenses properly, however, business managers must analyze the causes of the shortfall. Often, employees are the first to be cut as they represent a large expense, but without employees, a company cannot serve its customers.