← The Cash Flow Contractor4 Jun · 37 min
301 - TIMWOODS for Contractors: The 8 Types of Waste Hiding in Your Business
<p>$1 saved in waste is worth $2.86 in sales at a 35% margin. That's why getting efficient pays better than getting bigger.</p><p><br></p><p>In this episode, Martin and Khalil walk through TIMWOODS, the lean manufacturing acronym for the 8 types of waste: Transportation, Inventory, Motion, Waiting, Overproduction, Overprocessing, Defects, and Skills. They translate each one for contracting and service businesses, with examples from the back office, the shop, and the job site.</p><p><br></p><p>Plus the Toyota Way forces underneath (Muri, Mura, Muda), and a 1% P&L exercise that surfaces the highest-impact fix before you chase new sales.</p><p><br></p><p><strong>Key Topics & Timestamps</strong></p><ul><li>00:51 - Episode Intro</li><li>03:40 - Profit Math and 1% Fixes</li><li>09:30 - Transportation </li><li>11:44 - Inventory</li><li>14:49 - Motion</li><li>17:08 - Waiting</li><li>19:04 - Overproduction </li><li>20:50 - Overprocessing</li><li>25:56 - Defects</li><li>29:45 - Skills</li></ul><p><br></p><p><strong>Memorable Quotes</strong></p><ul><li>"Waste really is where your opportunity is." — Martin</li><li>"Efficiency really is the elimination of waste in a process." — Martin</li><li>"The more you can think about your business like a machine, the more success you're gonna have." — Khalil</li><li>"Reality is it's either the system or it's you." — Khalil</li><li>"Having the courage to delegate and trust people to get it done is absolutely necessary." — Martin</li></ul><p><br></p><p><strong>Key Takeaways</strong></p><ol><li>Doubling sales doesn't pay the bills. At a thin margin, doubling the top line without fixing waste can sink the business faster than slow growth.</li><li>A $1 of waste saved is worth far more in sales. At a 35% margin, $1 equals $2.86 in sales you don't have to chase to keep the same profit.</li><li>Walk TIMWOODS through your business: Transportation, Inventory, Motion, Waiting, Overproduction, Overprocessing, Defects, and Skills. Every category has waste hiding somewhere.</li><li>Run a 1% sensitivity exercise on every line of your P&L. Whichever line moves profit the most when improved by 1% is the line worth attacking first.</li><li>Mental context-switching is motion waste. Daily huddles, focused production meetings, and clear handoffs cut the brain-jumping that exhausts your team.</li><li>Skills waste is on the owner. If your team has no way to surface what they see on site, you're paying for talent and ignoring it.</li><li>Defects almost always trace back to the system or the owner. Before blaming an employee, ask whether the delegation was clear and the process is hard to do wrong.</li></ol><p><br></p><p><strong>Resources</strong></p><ul><li><a href="https://offer.growth-kits.com/24-things-book-a-roadblock-call?hs_preview=ormlyTeJ-182223989023">24 Things Guide</a></li><li><a href="https://growthkits.com/schedule-a-call">15-Min Roadblock Call</a></li><li><a href="https://www.quo.com">Quo</a></li><li>Build a business that runs without you. Explore our <a href="https://growthkits.com">GrowthKits</a></li><li>Need marketing help? We recommend <a href="https://www.benali.com">Benali</a></li><li>Need help with podcast production? We recommend <a href="https://www.demandcast.co">Demandcast</a></li><p><br></p></ul><p><strong>More from Martin Holland</strong></p><ul><li><a href="https://bit.ly/The-Profit-Problem">theprofitproblem.com</a></li></ul><ul><li><a href="https://bit.ly/Anneal-Business-Coaching">annealbc.com</a> </li></ul><ul><li><a href="mailto:martin@anealbc.com">Email Martin</a></li></ul><ul><li><a href="https://bit.ly/Meet-With-Martin">Meet With Martin</a></li></ul><ul><li><a href="https://bit.ly/Martin-Holland-LinkedIn">
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