Is There Hidden Money in Your Business?
During today’s “CBS This Morning,” Dr. Toby Cosgrove, President and CEO of the Cleveland Clinic, was featured to discuss the cost of health care and how the Clinic is managing to cut frivolous spending to reduce the cost for patients. The Clinic went through a detailed inspection of every aspect of patient care. This ranged from expensive items, like the types of implants and medical devices used on patients, to minute details, like the gloves doctors wear during procedures. Dr. Cosgrove gave the example of using $5 silk sutures to close wounds rather than spending $400 on staples. All together, the Cleveland Clinic has been able to save $100 million through these spending cuts and inspections without putting the quality of care at risk. As current or potential entrepreneurs, you may be wondering how a corporation like the Cleveland Clinic may apply to you? The answer is in spending cuts. Some entrepreneurs feel that they need to have the “latest and greatest” products to successfully run their business, but that is not always the case. For example, a coffee house may spend $1,000 on seating for their establishment, but if they could find the same amount of furniture for $400 and spend $200 on refurbishing the chairs, it would save the company money that could be put towards more products in inventory. So no matter what business you are in, take a deeper look into your spending to make sure you are making the most of your money.