How I saved £114,748 in 52 minutes, and still made money!

I am an advocate for a healthy lifestyle and the importance of using exercise and hobbies as a way of zoning out of stressful business issues and recharging your body and brain. Nevertheless, often zoning out means you can focus on solutions, and I thought it would be good to show you how I saved £114,748 in 52 minutes.

It was an extremely windy day one spring morning and I was trying to find an excuse to avoid my 10k run. Luckily, my run was temporarily halted while I eagerly answered a phone call from a colleague, which set my mind racing.

The challenge set during that phone call was to save the organisation some money, or it would close. Creating 25 job losses, and a whole range of services lost to people in need. I had to achieve this challenge, but how?

Thinking time was required, and as much as I try to find excuses for avoiding my run, I am a runner, and I knew it was time to run, time to think.

After achieving an Ok time of 52 minutes on my 10k run, I had the answers.
These were my suggestions (the calculations were completed later);

1. Cancel all subscriptions to magazines – with ipad and Kindles people can now read a whole host of magazines online, many e-zines and some journals are free. Make the most of them.

Saving £210 per annum.

2. Review and change phone contracts – 22 of the mobile phone contracts had not been reviewed for 4 years and they were paying outdated prices.

Saving £223 per annum.

3. Assess job roles, outsourcing and ask about voluntary redundancy – although this is always a last resort because no CEO wants to worry their staff and focus attention away from the business, the relationships between CEO, his PA and the staff were excellent which meant they were able to identify who wanted to work part time, who had additional skills and who was ready for redundancy.

Saving £27,212 per annum.

4. Send everyone home! Yes! Homeworking is now possible if it suits the work you do. In this case all staff were outreach with the exception of the CEO and his PA, yet the company was paying for 3 offices! The CEO starting working from home 3 days a week and shared an office his office with another organisation for 2 days a week, where the PA was based.

Saving £87,103 per annum, and 22.5 jobs, also gaining an income from the tenant and creating partnership opportunities with further income potential.

At the time it was difficult to know how the suggestions would be taken, and I did have some further ideas but they were not taken on board for this organisation. Not every idea works for every organisation and it takes discussion and negotiation to get it right.

My area of business is to help organisations develop and grow by sourcing income and establishing an effective long term strategy, which usually includes becoming more efficient.

Although I had every intention of avoiding my run on that cold windy day, I was brave enough to use the business issues as an excuse to zone out of the weather and focus, with the added bonus of reducing my 10k time by 2 minutes.

Thankfully my thinking is faster than my running!

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