Waste Not, Want Not?
The old saying, “waste not, want not” isn’t heard a lot. But when it comes to business it can be a good reminder. Let me explain. A local business that I like is Rising Tide Brewing. Brewing beer requires grains and hops. At the end of the process the spent grain is a waist product that needs to be disposed of. The brewery needs to get rid of it. They could spend money to haul it away, but is that necessary?
No, Rising Tide, like many other breweries, has found someone to take it away for free to be used for livestock feed. Basically they take an expense (getting rid of the spent grain) and give it to someone who can use it – and eliminate an expense.
An even better example is in wood products. Years ago the mills were happy to let you take as much of the bark waste as you wanted. Now bark mulch is much in demand. the last time I looked it was selling for over $30 per cubic yard. They’ve turned a waste product into an income steam.
Do these things work for everyone? Is there something you can do to cut down on expenses, or better still generate income? Have you looked?