Contents

Make Confident Decisions

How to Find Cost Savings in Your Direct and Admin Costs

3 min read

You'll have a list of specific cost changes and what they add to your yearly cash flow, tested on a copy before you cancel anything.

Before You Start

  • Where it is: "Plays" in the navbar, then "Start New". Two Plays cover costs:
    • "Direct Cost Optimization": the costs of delivering your work, from your Direct Costs step.
    • "Admin Optimization": overhead such as insurance, software and office costs, from your Administration step.
  • What you need: those steps filled in My Business, and Plays unlocked by ending the Score Card's tour.
  • Plan: a paid tier. Each run costs 1 credit, so both Plays cost 2. On the free plan, cut costs by hand with a Custom Scenario.

Steps

  1. Open the Play. On the Plays page, click "Start New". In "Start a New Play", pick "Direct Cost Optimization" or "Admin Optimization". The steps are the same for both.
  2. Mark what stays put. "Items to keep as-is" lists every cost with its category and amount. Tick the ones that aren't up for change: a signed lease, insurance you must carry, a crew you won't cut. Screenshot to come: Direct Cost Optimization intro listing direct costs under Items to keep as-is (cost-play-intro.png)
  3. Add context. In "Additional context for Occam", note what the numbers can't show, such as a supplier contract that renews in March.
  4. Click "Run Play". It costs 1 credit, charged only if the run succeeds.
  5. Read the recommendations. Each cost shows a badge (Reducing, Eliminating, Adding, Increasing or Keeping), the old and new amount, and the reasoning. The top of the page shows "Direct Cost Savings" or "Admin Savings" and "Cash Flow Impact". Screenshot to come: Direct Cost Optimization results with Direct Cost Savings and per-cost Reducing badges (cost-play-results.png)
  6. Check the cash and the plan. The "Cash Flow Impact" tab compares Current, Change and Scenario line by line. "Implementation Plan" turns the cuts into tasks.
  7. Run the other Play if you want both sides covered. Each compares against your current business, not against the first Play.

Tips

  • Start where the dollars are. At the hypothetical Steadyroot Wellness, direct costs are $3,543 a year and admin costs $7,500, so admin is the bigger target: 10% off admin saves $750, 10% off direct costs $354.
  • To adjust a recommendation, click "Duplicate & Customize". The copy opens on an "Edits" tab where you change amounts yourself and click "Save Changes".

Common Questions

Will the Play cancel anything or change my books?
No. It works on a copy of your business. My Business stays as it is until you change it yourself.

How do I stop it from cutting something I need?
Tick it in "Items to keep as-is" before you click "Run Play", and say why in the notes.

Can I cut costs on the free plan?
By hand, yes. Start a Custom Scenario, tick "Direct Costs" and "Administrative Expenses", and lower the amounts yourself. It uses no credit.