Wastage in business – time and resources
You probably waste more than you think in business; time and resources mostly. Most business people are strict about their spending. They watch their books closely. However, if you are just starting entrepreneurship, you might want to be more efficient in your processes and avoid activities that will make you waste money and time. Since you are just getting started, I believe you don’t have money or time to waste.
When it comes to business or life; generally, some people tend to be spendthrift, whereas others are economical in their lifestyle.
Your friends might be wasting a lot of time in life and business. That is one type of wastage people don’t know they are doing. They can be wasting your resources when they want freebies and services. And they don’t even realize they are doing this.
When Arsene Wenger was the Arsenal coach, many Arsenal fans would say that he didn’t put so much money in buying players during transfer seasons. He preferred developing the talent he had as opposed to putting big figures on the established players who were on the market. He holds a degree in economics, and many assumed that he is economical. He preferred another means of creating talent. He would be the one doing the selling as opposed to buying most of the time.
A businessman is a seller and not really a buyer. We the ordinary citizens, are the ones who do most of the buying. And therefore you want to be the one selling. However, there will be little expenditure you incur to keep the business running.
To avoid wastage in your business, check out the following:
No freebies…Avoid giving free services to avoid wastage
It is common for friends and family to want things from you on low cost than the set price or even ask for free things. I would strongly advise you not to do this. It will sink your business. Even if you like helping, it will drain you with time. If you are just starting out, they ought to be the one buying and supporting your business to keep things going. And not asking for free offers, that leads to wastage.
This is common in freelancing. If your friends know that you design some good party and birthday cards, they would want it done at a lower cost most of the time. You might consider a lower price for them but don’t let it be a constant thing. You have to minimize waste at all times.
Why would you give away things you use time and resources to create? Of what value do you get back..the only time you can do this is when you have offers or promotions.
Negotiate for better deals to avoid wastage in business
This is key. Look for the best offers for whatever you need to run the business. If you need human resources or goods to stock your shop, look for the best prices. It is called the best value for money. Avoid spending so much on things that you can easily get at a fair price. You want a lean process that eliminates waste.
There is always a cheaper option with equal value to whatever is overpriced. And negotiation is one important skill that every business person needs to avoid getting into bad contracts. And apparently, not many business people are good at negotiating fair deals.
This is where a lot of wastage happens in business. One way you will get into bad deals is by using a broker to get goods. Brokers will always want a cut, and thus they will give you things at a higher price than what is set by a manufacturer. If you can buy directly from the manufacturer, you will definitely get better deals. This will help you avoid wastage in your business.
Most business people don’t have direct contact with manufacturers and would rather use middlemen to get supplies. If you can establish a relationship with manufacturers, you will avoid the cost of middlemen. It is thus of great importance to get the right contacts early in your business so that whenever you need new stock, you will have a trustable source of supply. Apart from hiking prices, brokers are known to sell counterfeit too and are thus rather kept at bay.
Purchase efficient machines to avoid wastage of time in business
If you need machines like cars for your business, I would advise you to purchase efficient ones that don’t break down easily. In Kenya, if you are running a farming business and supplying potatoes or vegetables to grocery vendors in Nairobi, the best car for such a business would be a Probox. Or a pickup. These cars have enough space and good speed that will enable you to reach your destination with no breakages. They are low maintenance and high efficiency.
If you have a taxi business, you can buy a Vitz. They are low in maintenance and good in service.
If you are hiring people for your business, you can get the best workers who can perform and deliver services to your customers in good time. Employers are equally a big part of efficiency. If they are not efficient, they will be wasting time in the business place.
Business is not the only thing you are doing with your life, and thus you need in place a process that runs things smoothly without issues.
Avoid wasting time in business
This happens when you set business meetings all the time and have less time to work on your actual products and services. If you are to set meetings, they should be adding value to the company and not useless meetings that consume unnecessary time. This happens a lot in companies when they are on projects, and you find people consuming more time in meetings than in the actual business of the company.
If you can avoid long meetings, I would strongly advise you just to do that. There is no need for a meeting to be longer than 60 minutes. Or after that, you will start making bad decisions. This is very true. There is no need for having three meetings in a day talking about the same thing. You can put all your issues in one meeting and clear them all to avoid wasting time.
Time is a resource in your business that you don’t have as much as you think. You don’t have to be wasting your precious time in meetings for things that can be discussed through emails and phone calls. If you can find easier ways of communication, then you are better off using them.
Wastage in business can come in many forms; some of which you didn’t see coming like long meetings and giving away your services for free to your friends. Hiring the wrong talent can also slow you down, and thus you need to be keen on what you bring to your business. However, bad deals and inefficient processes are the big ones that you should keep an eye on.