Did you know that waste can eat up as much as 30% of your operating costs? That’s a huge chunk of your budget! And yet, many businesses just accept it as part of doing business—focusing on increasing sales instead of fixing inefficiencies. But here’s the thing: why push more sales through a system that’s not running smoothly?

That’s where the Five-Step Waste Reduction Process comes in. It’s a straightforward way to spot waste, eliminate it, and make your business more profitable and efficient.

Here’s how it works:

1. Audit: First, take a close look at where waste is happening in your operations. A simple waste audit can reveal surprising opportunities to cut costs and run more smoothly.

2. Prioritise: Once you’ve identified the issues, don’t try to fix everything at once. Use a tool like a Project Ranking Matrix to narrow your focus. Pick the top 2–3 issues that are easy to fix and will make the biggest impact.

3. Build a Team: Get the right people involved. Form a team with a mix of skills, give them the training they need, and choose a strong leader to keep things moving forward.

4. Track Progress: Set clear, measurable goals—Key Performance Indicators (KPIs)—so you can see what’s working. For example, aim to cancel unused software licenses or cut IT costs by a specific date. It’s all about being transparent and staying on track.

5. Make It a Habit: Don’t treat this as a one-time fix. Make waste reduction part of your company culture. Do a new audit each year to find fresh opportunities to improve.

Why This Matters

Cutting waste isn’t just about saving money—it’s about building a smarter, more capable business. You’ll free up resources, serve your customers better, and deliver more value to your stakeholders. Plus, it creates a culture where continuous improvement becomes second nature.

Ready to Get Started?

Kick things off with a waste audit. Ask yourself: where are we losing time or money? Then use this five-step approach to take action, involve your team, and measure your progress. Remember, this is about more than just trimming the fat—it’s about setting your business up for long-term success.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help with your Waste Audit, please get in touch with us for assistance. Take our free 5 minute profit/efficiency health check to pinpoint the top areas for improvement here.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Based on content from Mindshop, a trusted resource for business advisors worldwide. Liability Limited by a scheme approved under Professional Standards Legislation.