October 30, 2019
To be successful in business, it is imperative to maximize profit—this is standard knowledge—but the diversity of methods that can be used to achieve this is often overlooked. It is not always about the flashy advertising or large, glamorous contract. Instead, it is about consistency in efficiency, especially when dealing with the small, mundane aspects of business.
One of these unexciting but entirely necessary elements is that of operations and maintenance. To call this sector of business a necessary evil may not be of an exaggeration. However, to the opportunistic eye, an O&M budget can be an area where money can be used effectively and efficiently, allowing for expenses to be cut and profits be increased.
What are the keys to flattening your O&M budget? There are many, but we’ve chosen our top five—read on to discover what they are.
1. FIND THE FAT
Budgets are both fickle and complex. The more expansive your business becomes, the more this fact rings true. Analyzing a budget is a must, but there is a stark difference between analyzing and understanding the analysis.
It is vital to fully grasp where money is going and what work it is doing. As such, this is an area that requires in-depth research and more time than you will probably want to spend. The potential results, however, are worth their weight in gold (or dollars).
Determining where your money is being used most efficiently not only provides insight, it also is a bit encouraging. The opposite is also true.
Uncovering waste in your budget can be eye-opening, but should be taken as a positive opportunity to trim the fat and flatten out your O&M budget.
2. TRIM THE FAT
Once you have properly analyzed your O&M budget and pinpointed where you could be saving money by reducing waste, you can implement strategies to do exactly that. This process sounds deceptively simple, but there are some key caveats to keep in mind.
You’ve located the excess in your budget. You’re ready to plug the holes in the leaky ship. This is where the hard part comes in—sometimes trimming the fat takes patience. Just like with the body, jumping into a strict diet and intense workout program might work, but it could also wreak havoc and lead to severe health issues or a quick waving of the white flag.
Strategizing and slowly cutting out unnecessary expenses ensures your business will have time to adjust and continue to operate at a high level. If you give up one source of nutrition and do not replace it with a healthier option, you leave a detrimental hole in your diet. Don’t leave holes in your O&M budget, fill them with a more appropriate replacement.
3. DO YOUR HOMEWORK
Part of your O&M budget involves allocating funds to vendors and outside business that provide services outside of your expertise or overhead. While you may not necessarily be getting “ripped off,” it is important to shop around, collect multiple quotes for the jobs you need done, and guarantee you’re selecting the best option.
This strategy extends to goods. Your sites require repairs, regular maintenance, and funds just to operate. Doing your homework and finding the best bang for your buck is an easy way to eliminate wasteful spending and flatten out your O&M budget.
4. CHOOSE QUALITY
While searching for financially-friendly deals is great, it is important to balance that desire to cut expenses with the absolute necessity of high-quality goods and services. While you may save on the front end by opting for the less expensive option, it could come back to bite you in more ways than one.
The failure of goods and services that can arise from subpar, money-saving options can be expensive to rectify. Whether it is replacing cheap equipment, repairing damages caused by shoddy maintenance, or even compensating an employee injured on the job due to corner-cutting, the repercussions of choosing cheap can be immense. Try to find the balance between a good deal and a high-quality offering.
5. KNOW WHO YOU’RE WORKING WITH
Whether it is an employee you hired or an outside vendor or contractor, knowing who you are working with can be the difference between loss and gain. There’s a reason interviews are conducted before embarking on business pursuits with someone—the same should hold true when considering your O&M budget.
You may pay more to ensure quality work and a mutuallyconducive relationship, but that trust and understanding between parties provides more than peace-of-mind, it offers long-term value. So, choose a reputable and experienced entity with which to do business.
World Wind & Solar has been providing quality work for clients across the nation for more than a decade. They have a reputation of quality and professionalism that has been earned, not given.
Office: 661-822-4877 | Cell: 858-472-3883
Email: [email protected]