Share
Tweet
Share
Share
How Can Businesses Streamline Operations to Achieve Significant Cost Savings?
In the quest for leaner operations and substantial cost savings, we’ve gathered insights from seasoned professionals including Managing Directors and CEOs. They share their top tips, from embracing automation and cloud infrastructure to establishing a unified operating model, drawing on instances where their strategies have driven remarkable financial efficiency. Here are the seventeen expert strategies that have proven to make a significant difference.
- Embrace Automation and Cloud Infrastructure
- Conduct Quarterly Audits for Savings
- Automate Payroll for Cost Reduction
- Cross-Train Teams for Efficiency
- Centralize With Project Management Tools
- Automate Reporting for Cost Efficiency
- Negotiate Fixed-Price Contracts
- Digitize Patient Intake for Savings
- Centralize Communication to Reduce Hand-Offs
- Outsource Non-Core Functions
- Optimize Approval Workflows
- Centralize Inventory Management
- Create Manuals for Repetitive Tasks
- Use AI for Real-Time Data Monitoring
- Automate for Lead Generation Efficiency
- Leverage Technology for Cost Savings
- Establish a Unified Operating Model
Embrace Automation and Cloud Infrastructure
My top tip for streamlining business operations to achieve significant cost savings is to embrace automation and cloud-based infrastructure. By automating repetitive tasks and migrating to scalable cloud solutions, businesses can reduce manual errors, lower operational costs, and optimize resource usage.
One example of this was a project we undertook for a client in the ticketing industry. They faced challenges with on-premise infrastructure, which was costly and inefficient to maintain. By migrating their systems to AWS and automating key processes, we not only improved their system’s scalability but also reduced their overall infrastructure costs by 30%. This allowed the client to reallocate resources toward innovation and customer experience improvements, resulting in both operational efficiency and business growth.
Sergiy Fitsak, Managing Director, Fintech Expert, Softjourn
Conduct Quarterly Audits for Savings
One of the most effective ways to streamline business operations for cost savings is by conducting quarterly audits of all our tools and services. We often find that we’re subscribed to a higher tier than necessary, especially with project management tools. For example, after years of using a particular PM tool, we realized we could downgrade to a lower tier, cutting our costs nearly in half.
Additionally, many services offer “win-back” deals, giving discounts (like 30% off) when you consider canceling—Adobe is a good example. It’s crucial to optimize your tools and look for consolidation opportunities, such as reducing the number of messaging apps your team uses. This can significantly cut costs while ensuring you invest in the right infrastructure for long-term success.
Mike Zima, Chief Marketing Officer, Zima Media
Automate Payroll for Cost Reduction
Automation is the best way to achieve significant cost savings. This process leverages technology such as AI to perform tasks that are repetitive and minimizes the costs spent to compensate human labor, which would otherwise be doing the repetitive tasks. Activities such as invoicing, inventory management, customer relationship management (CRM), and employee onboarding processes can be effectively automated in a company.
I have worked for a company that automated its payroll system to reduce the cost of operation. This helped the company save on the costs that they would have been spending to compensate three people to do the same work. Not only is this automation cheaper, but it also enhances productivity since the machine does not take breaks like humans during work hours.
Shamsul Duha, CTO & Digital Marketing Expert, Carrier Bag Shop
Cross-Train Teams for Efficiency
Let’s talk about optimizing workflows by leveraging cross-training within your team. Cross-training involves teaching employees skills beyond their primary roles so they can perform multiple functions. This strategy can lead to significant cost savings and operational efficiency.
For example, we identified that several tasks were repetitive and siloed within departments. We decided to cross-train employees across different functions—sales staff learned basic customer service skills, and customer service reps were trained in sales processes.
The impact was notable. With employees capable of handling multiple roles, we were able to better manage peak times and reduce the need for additional hires. This flexibility led to a 15% reduction in labor costs because we could allocate staff where they were needed most without incurring overtime or hiring temporary workers.
It also improved team collaboration and morale, as employees gained a broader understanding of the business. It also ensured that critical tasks were covered even when team members were absent.
Tim Woda, Founder, White Peak
Centralize With Project Management Tools
My top tip for streamlining business operations to achieve significant cost savings is implementing a unified project management system that integrates with all core business functions. For example, transitioning to a comprehensive tool like ClickUp allowed us to centralize task management, communication, and reporting. This integration eliminated redundant software subscriptions, reduced manual data-entry errors, and improved team collaboration.
This was particularly effective during our recent campaign launch. Using ClickUp, we streamlined our workflow, consolidated project updates, and tracked progress in real-time. This led to a 25% reduction in project turnaround time and saved us approximately 15% in operational costs by reducing the need for additional administrative support. The visibility and efficiency gained were instrumental in delivering high-quality results within budget.
Marcus Clarke, Owner, Searchant
Automate Reporting for Cost Efficiency
Implementing automated reporting systems has been a game-changer for us. We’ve seen labor costs drop by 30% while improving the accuracy and timeliness of client reports. This approach has not only streamlined our operations but also enhanced our ability to provide transparent, up-to-date financial insights to our clients, which is crucial in managing over $1.2 billion in assets.
Jonathan Gerber, President, RVW Wealth
Negotiate Fixed-Price Contracts
As the owner of a general contracting firm, optimizing costs is critical. Early on, I negotiated fixed-price contracts with trade partners, locking in rates that saved over 15% on labor. We analyzed job processes and moved entirely to digital plans, cutting print costs by $12,000 annually.
Our biggest win was renegotiating terms with suppliers. By bundling orders and paying on tighter terms, we cut materials costs by 22% while still receiving volume discounts. We scrutinize all contracts regularly, renegotiating or switching vendors when better terms are available.
For our commercial clients, we bundle as many trade services as possible under our general contract. This simplifies project management for clients and allows us to negotiate the best rates, saving them 12-18% on total buildout costs. On a recent retail buildout, bundling security, IT, and A/V saved the client over $75,000. Regular reviews of service contracts and fees are well worth the effort.
Streamlining operations isn’t a one-time event but an ongoing process. It requires diligent monitoring of costs, fees, and internal processes to yield the biggest, sustainable savings. With open communication and a willingness to change, any business can achieve significant cost reductions.
Brayden Montgomery, Owner, Vantage Builders
Digitize Patient Intake for Savings
Implementing an advanced Electronic Health Record (EHR) system with integrated patient intake forms can save time and reduce administrative costs.
For instance, by transitioning to a digital intake process, patients can complete forms online before their visit, which reduces the time staff spend on data entry and minimizes errors. This system also facilitates quicker access to patient information, allowing for more efficient appointment scheduling and follow-up care.
We’ve found this strategy to be particularly effective. By automating and digitizing patient intake, we not only cut down on paper use but also significantly improved the accuracy and efficiency of our data management. This resulted in faster processing times, fewer administrative errors, and ultimately, a better patient experience. The operational efficiencies gained through this approach helped us reduce costs and improve overall practice performance.
Dr. Thierry Hufnagel, Board Certified Ophthalmologist & Owner, Stahl Eyecare Experts
Centralize Communication to Reduce Hand-Offs
Take a look at hand-offs if you want to streamline your operations and lower your costs. You see, hand-offs are where work goes to die. The “telephone effect”—something enters one end of a process and emerges on the other end completely garbled—is just the beginning.
The real problem, and a much larger efficiency gap killer, is what happens to all of these handovers across possibly many stages of a business process. Here is a simple example: let’s say you have a field sales campaign across the Product, Marketing, Sales, and Customer Support teams.
Product starts the ball rolling by passing the campaign to Marketing on a Trello board. Then, Marketing makes some tweaks to the campaign and passes it to Field Sales, but they switch the communication mode, from Trello to email and Slack. They also switch the format, from structured cards to PDF documents for all the details.
Finally, Customer Support reaches out to respond to questions from customers about the campaign. Where should they go to get information? The email thread? Or are the messages in Slack? Or perhaps the Trello board has all the data?
In my case, a time when hand-offs were especially impactful was at a rebranding launch at my company, where all of the miscommunication was slowing us down in a chaotic way. Once we centralized our communication and used one tool for project management across the teams, we made miscommunication less frequent and enabled all the teams to spend much less time chasing information, which sped up processes, cut stress and frustration among team members, and made operations more cost-effective.
Thomas Franklin, CEO, Swapped ApS
Outsource Non-Core Functions
One suggestion for streamlining business operations and reducing operational costs is outsourcing non-core functions. This approach allows you to lower payroll expenses while keeping your organization lean over time.
For example, our team struggled with IT support in our startup. We had a small in-house team, but the costs were eating into our budget.
By outsourcing our IT support, we not only saved on salaries but also gained access to a broader range of expertise. The outsourced provider handled everything from routine maintenance to troubleshooting, which freed our team to focus on product development and customer acquisition.
As a result, we were able to reduce operational costs by 30% and redirect those savings into growth initiatives. Outsourcing tasks like IT support, tax preparation, customer service, and marketing can positively impact efficiency and allow businesses to concentrate on what truly drives revenue.
Vidya Jaiswar, Operations Manager, TapWell
Optimize Approval Workflows
My suggestion for streamlining business operations is to optimize approval processes. By transforming complex, time-consuming approvals into structured, efficient workflows, companies can reduce bottlenecks and accelerate decision-making.
In our tech startup, this approach was particularly effective—where we implemented a digital approval system for candidate screening and hiring processes.
Previously, candidate approvals required multiple email exchanges and manual tracking, often causing delays in the hiring process. By implementing an automated workflow with clear approval stages and mobile accessibility, our HR team reduced approval times by 25% and eliminated costly hiring bottlenecks.
This streamlined process not only saved direct costs in recruiter hours but also improved overall operational efficiency, leading to faster candidate placements and increased client satisfaction.
Andrei Goraș, Marketing Director, Index
Centralize Inventory Management
One of the most effective ways to streamline business operations and save costs is to centralize your inventory management. We adopted an advanced inventory management system that consolidated data from various sources into a single platform. This allowed us to track stock levels in real-time, reduce overstocking and understocking issues, and manage reorder points more efficiently.
A great example of its impact was during one of our peak wedding seasons. With the centralized system, we could quickly identify which products were in high demand and adjust production and procurement accordingly. This not only minimized wastage but also ensured we were not left with excess stock that could become outdated.
As a result, we saved significantly on storage costs and reduced the amount of capital tied up in unsold inventory. This approach also helped us make data-driven decisions that improved overall workflow, eliminating bottlenecks and increasing our operational efficiency.
Jean Chen, COO & Co-Founder, Mondressy
Create Manuals for Repetitive Tasks
My top tip for cutting costs and streamlining operations is to create manuals for all the processes you repeat regularly. Write down every step clearly and follow these manuals exactly as they are. This will help you spot any inefficiencies in the processes and in the manuals themselves. After you find these issues, fix the processes and update the manuals. Keep repeating this cycle of checking and refining. It’s a straightforward approach that can lead to significant cost savings over time.
Andrei Mincov, Founder & CEO, Trademark Factory®
Use AI for Real-Time Data Monitoring
Leveraging AI to monitor data in real-time is my top recommendation for streamlining operations and achieving significant cost savings. AI can process vast amounts of data quickly and accurately, providing instantaneous feedback on various aspects of the business. We applied this approach effectively by restructuring our performance dashboards using AI-assisted SQL queries and tools like Looker Studio. These dashboards allowed us to track performance metrics such as inbound/outbound leads and cost per hire in real-time.
With these real-time insights, we were able to identify inefficiencies immediately. This allowed us to make informed decisions about where we were overspending and where we could optimize. For example, we saw that certain marketing channels were underperforming relative to their cost. Adjusting those channels promptly helped reduce unnecessary expenses and better allocate our marketing budget. As a result, we saw a notable improvement in our Return on Ad Spend (ROAS).
Shannon Smith O’Connell, Operations Director, Reclaim247
Automate for Lead Generation Efficiency
Implementing strategic automation has been our top cost-saving measure, particularly in client service and lead generation. By identifying repetitive tasks and automating them, we’ve significantly improved efficiency and reduced costs.
We developed an AI-powered chatbot for our website that handles routine client inquiries and captures lead information 24/7. This system not only improved our response times but also qualified leads automatically. For instance, the chatbot asks targeted questions about budget and project scope, routing high-potential leads directly to our sales team.
The results were impressive: our lead response time dropped from hours to minutes, and we saw a 40% increase in qualified leads. Meanwhile, our support team now focuses on complex issues that truly require human expertise. This dual approach of automating client concerns and lead generation has allowed us to scale our operations without proportionally increasing costs.
My tip when automating client interactions is to ensure there’s always an easy option to reach a human. The goal is to enhance, not replace, the personal touch that builds strong client relationships.
Aaron Whittaker, VP of Demand Generation & Marketing, Thrive Digital Marketing Agency
Leverage Technology for Cost Savings
One of my top tips for optimizing business operations for cost savings is adopting and leveraging innovative technology. This approach significantly reduces manual processes, increases efficiency, and ultimately drives down costs. A prime example from my own experience is when we employed Virtual Try-On technology on our website.
This innovative tool allowed customers to try on eyeglasses virtually, eliminating the need for physical retail spaces, reducing overhead, and leading to significant cost savings. Alongside this, it improved customer experience by letting them try on various models from the comfort of their homes, thus increasing customer satisfaction and retention.
Mark Agnew, CEO and Founder, Eyeglasses.com
Establish a Unified Operating Model
My top tip for streamlining business operations to achieve significant cost savings is to establish a clear and unified Target Operating Model (TOM). The TOM acts as a blueprint for the organization’s processes, technology, people, and data, ensuring they are all aligned and optimized towards the business strategy. By creating this unified model, you can identify inefficiencies, eliminate redundancies, and streamline operations to drive cost savings and improve overall performance.
A particularly effective example of this approach was during my work with the Ministry of Justice (MOJ) on their National Compliance & Enforcement (NCES) project. As the lead Business Architect, I guided the development of a comprehensive TOM that rationalized the existing real estate and IT estate. This included reducing 53 physical locations to just three central contact centers and achieving a 75% reduction in FTE headcount.
Through streamlining processes and retiring the legacy finance system in favor of a new, single online case management system (ERP/CRM) and a modern telephony system, we not only enhanced the user experience and transparency but also significantly increased fine collection. This project showcased how a well-defined TOM can drive substantial cost savings by reducing overheads, optimizing resource allocation, and improving service delivery.
The key to success in such initiatives is to have a clear vision and strategy that guides the development of the TOM, ensuring that every change made is in service of the broader business objectives and contributes to measurable cost savings.
Heath Gascoigne, Founder & CEO, HOBA Tech
Related Articles
