Your money means a lot to you. If you run a business, it means even more. You need to see that the lights stay on and that you have the potential to get bigger lights for more business in the future. That’s why smashing the piggy bank is really one of the worst things that can happen to you in business. Costs can set you back, big-time, so it’s only natural that you learn how to keep them to the essentials.
Stock and equipment
Any business that uses stock and machinery tends to run this risk. We mean wasting a lot of money by not looking after it correctly. Reckless standards for equipment result in more breakages, which means more repairs and replacements. In construction, manufacturing and otherwise, you need to schedule maintenance and inspections. In any business, you also need to consider how you protect the equipment. If it’s worth money, there’s a risk someone will want to make that money. Every bit of stock needs to have a security solution attached to it. Whether it’s an inventory system for a retail store or vehicle tracking on those very pricy fleets of yours. Don’t just leave it up to chance.
You’re not only at risk from the wrongdoings of others. You’re also at risk of your own potential wrongdoing. Negligence leads to lawsuits which result in a lot of money drifting out of your account. The first place to start making sure you’re fulfilling your legal obligations is in health and safety. Before you think it’s not a concern, remember that accidents at work are the most common form of lawsuits for a business. Then it’s about looking at your employee practices. Hiring, harassment, and termination all need to have a strict code of conduct on how you deal with them. Similarly, you should consider including an arbitration clause as part of your employment contracts. Do whatever you can to keep them out of court. Even if you win, it’s a cost you shouldn’t be wasting your money on.
A worry that’s not quite as blatant but still very real. It takes money from the pockets of businesses day-in, day-out without ever making a sound. Consider how you can change up the workflow to get rid of the inefficiencies that lose you money and materials. Lean principles were originally developed for the world of manufacturing but can easily apply to any business. For example, we’ve already mentioned the principle of maintaining your equipment. But how about rearranging it to fit the transferal of work better? Or getting rid of arbitrary equipment that doesn’t suit its purpose in its current position? Lean is all about getting rid of loss in the workplace. Start adopting it and start finding that you end up with a lot more of your money at the end of the day.
Don’t let your money be wasted on any of the stupid mistakes or oversights mentioned above. Spend your money on your employees and improving your business. Not patching holes that you could have easily avoided making in the first place. Keep that piggy bank intact.
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