As a small business owner, you are always looking for ways to improve your profitability. After all, being profitable means that those things which are important to you can be done and enjoyed. A home, college tuition, a cottage, boat or other “toys.” Right now you may easily have 7% or more of your sales that could become instant profit.
This isn’t smoke and mirrors, it isn’t an overactive imagination. These are real dollars that you are already spending that you shouldn’t have to spend…if you can improve some of your processes with the goal of seriously reducing or eliminating the waste of this money, you turn it into profit.
So where is this money hiding? Like many things, it is right there in front of you. It is the money spent on error and waste. Error is a mistake. Mistakes cost time and materials. Time and materials are money. Examples of error are: