TUESDAY CHALLENGE: ELIMINATE WASTE
Let’s start off with a definition of waste: “Waste is anything that adds to a company’s cost which is not valued by the customer.” The result of waste elimination translates to a boost in profits.
The best way to begin this process is to take an internal look at your business. Start by making a list of “waste” in your business. The following are a few examples of waste:
- Ordering more supplies than you will need. This is either a case of overestimating your need or your clients’ need for that product. This can include printed material, office supplies as well as products that you plan to sell.
- Time for a small business translates into money; thus wasted time is a waste of money. We all spent too much time waiting for a phone call, a package or????? Instead of just waiting do something productive, no matter how small.
- Excessive movement. A good example is going to the office supply store to buy notebooks, taking them back to the office and then going to meet someone in the vicinity of the office supply store. Excessive movement is also found in an office, no matter the size of the space.
- Purchasing the latest “technology” when your old one works just as well. An example is the iphone 4 that my wife uses. It does most everything that my 7 does, but she saved hundreds of dollars by not upgrading.
- Meetings with no purpose or action accountability. If a meeting cannot be translated into an income opportunity, then it becomes classified as waste. Meetings for the sake of meetings have become the norm even for small businesses. Select the right time, the right amount of time and the right person(s) to meet with to minimize waste.
I don’t advocate growing a business without investment in marketing, image creation, operational equipment and staff. Eliminating waste allows for more bottom line profits which allows for the right type of investment that can increase the bottom line in a much more dramatic fashion.
It’s always good to complete a “waste analysis”. Do your semi-annual review today.
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