How many times have you purchased something on impulse and later on realized it was a waste of money? We’ve all probably been there a time or two in our lives. While you can very well do as you please with your own finances, when it comes to managing company finances, impulsive, haphazard purchases could ultimately lead to financial demise.
Yes, it’s true you have to spend money to make money and invest in the business for it to grow, but if you don’t think the purchase through carefully you’re putting the future of your business on the line. Below are a few steps you can take to make more efficient purchasing decisions:
Define the Need
The first thing you need to do before making a decision is define the need of the company. What is it that needs to be accomplished? What void needs to be filled? In order to ascertain the real needs of the company you may need to converse with management. Talking with supervisors or human resource staff can give you an in-depth understanding of where the needs are in the company.
For example, the owner of a manufacturing company may not be aware that the production process is wasting a lot of time and resources. However, the production manager would be able to provide this information. The manager would be able to provide suggestions on feasible solutions, such as MPS software (Master Production Scheduling software) that would allow for the production team to stay on task and access pertinent work order information.
Establish a List of Criteria
Once you’ve determined that there is in fact a real need within the company, the next step is to determine what criteria you need the product or resource to have in order to fulfill the need. Using the example above, if it is agreed that scheduling software is needed to maximize the production process, what features does this software need to encompass? Do you only need scheduling? Would you like features that allow staff to access work order information? Would you prefer an application that is cloud based?
Again, working with management or even the workers on this list of criteria will ensure that you’re making a purchase that is not only necessary, but that will actually benefit those who will be utilizing or benefiting from the product. Creating a list of “must haves” and “would like to have” can help you in finding the best solutions for the business.
Check the Budget
Now that you know there is a need and know exactly what type of resource you need to invest in, can you afford it? Though you may have a need for something, if purchasing it is going to put you in the red, you may need to look at other solutions. Review your budget to see what you have available to spend. To determine if you have enough, it may be necessary to do a bit of research to determine the going rate for what you’re looking to buy. If you have an accountant, this would be a good time to consult with them to evaluate your budget and determine what you can spend.
Research Your Options
After you’ve determined what you have to spend on your purchase, you’re ready to begin research. You don’t just want to purchase the first product that comes your way, but the Internet can be resourceful in helping you compare features and costs. As you review various suppliers review the features and compare them to your “must haves” list and your budget. Try to narrow it down to at least two or three choices and then bring the options back to your management team to discern which the best option is.
Making a purchase for your company is a lot like making a purchase for your household. The only real difference is that the funds you’re utilizing are not simply your own, these funds are necessary for maintaining and operating your business and as such impulsive purchases could result in poor finances. By utilizing the above mentioned steps in your decision making process you are sure to have a much simpler time making a purchase that will benefit your business now and in the future.
A Good Look At How Homes Will Become More Energy Efficient Soon
Everyone always talks about ways they can save energy at home, but the tactics are old school. They’re only tweaking the way they do things at the moment. Sealing holes in your home isn’t exactly the next scientific breakthrough we’ve been waiting for.
There is some good news because technology is progressing quickly. Some tactics might not be brand new, but they’re becoming more popular. Here are a few things you should expect to see in homes all around the country within a few years.
1. The Rise Of Smart Windows
When you look at a window right now it’s just a pane of glass. In the future they’ll be controlled by microprocessors and sensors. They’ll change depending on the specific weather conditions directly outside.
If the sun disappears the shade will automatically adjust to let in more light. The exact opposite will happen when it’s sunny. These energy efficient windows will save everyone a huge amount of money.
2. A Better Way To Cool Roofs
If you wanted to cool a roof down today you would coat it with a material full of specialized pigments. This would allow roofs to deflect the sun and they’d absorb less heat in the process too.
Soon we’ll see the same thing being done, but it will be four times more effective. Roofs will never get too hot again. Anyone with a large roof is going to see a sharp decrease in their energy bills.
3. Low-E Windows Taking Over
It’s a mystery why these aren’t already extremely popular, but things are starting to change. Read low-E window replacement reviews and you’ll see everyone loves them because they’re extremely effective.
They’ll keep heat outside in summer or inside in winter. People don’t even have to buy new windows to enjoy the technology. All they’ll need is a low-E film to place over their current ones.
4. Magnets Will Cool Fridges
Refrigerators haven’t changed much in a very long time. They’re still using a vapor compression process that wastes energy while harming the environment. It won’t be long until they’ll be cooled using magnets instead.
The magnetocaloric effect is going to revolutionize cold food storage. The fluid these fridges are going to use will be water-based, which means the environment can rest easy and energy bills will drop.
5. Improving Our Current LEDs
Everyone who spent a lot of money on energy must have been very happy when LEDs became mainstream. Incandescent light bulbs belong in museums today because the new tech cut costs by up to 85 percent.
That doesn’t mean someone isn’t always trying to improve on an already great invention. The amount of lumens LEDs produce per watt isn’t great, but we’ve already found a way to increase it by 25 percent.
Maybe Homes Will Look Different Too
Do you think we’ll come up with new styles of homes that will take off? Surely it’s not out of the question. Everything inside homes seems to be changing for the better with each passing year. It’s going to continue doing so thanks to amazing inventors.
ShutterStock – Stock photo ID: 613912244
IEMA Urge Government’s Industrial Strategy Skills Overhaul To Adopt A “Long View Approach”
IEMA, in response to the launch of the Government’s Industrial Strategy Green Paper, have welcomed the focus on technical skills and education to boost “competence and capability” of tomorrow’s workforce.
Policy experts at the world’s leading professional association of Environment and Sustainability professionals has today welcomed Prime Minister Teresa May’s confirmation that an overhaul of technical education and skills will form a central part of the Plan for Britain – but warns the strategy must be one for the long term.
Martin Baxter, Chief Policy Advisor at IEMA said this morning that the approach and predicted investment in building a stronger technical skills portfolio to boost the UK’s productivity and economic resilience is positive, and presents an opportunity to drive the UK’s skills profile and commitment to sustainability outside of the EU.
Commenting on the launch of the Government’s Industrial Strategy Green Paper, Baxter said today:
“Government must use the Industrial Strategy as an opportunity to accelerate the UK’s transition to a low-carbon, resource efficient economy – one that is flexible and agile and which gives a progressive outlook for the UK’s future outside the EU.
We welcome the focus on skills and education, as it is vital that tomorrow’s workforce has the competence and capability to innovate and compete globally in high-value manufacturing and leading technology.
There is a real opportunity with the Industrial Strategy, and forthcoming 25 year Environment Plan and Carbon Emissions Reduction Plan, to set long-term economic and environmental outcomes which set the conditions to unlock investment, enhance natural capital and provide employment and export opportunities for UK business.
We will ensure that the Environment and Sustainability profession makes a positive contribution in responding to the Green Paper.”