Approximate annual savings
Real Case Study | ATV / A Toda Velocidad
Q130,000 in Annual Savings Without Reducing Staff: Operational Efficiency at ATV.
How financial analysis, cost renegotiation, and operational redesign improved the sustainability of BPO and Software business units without affecting service quality.
Operational and sales cost reduction
Rent eliminated, plus parking and internet
Staff reduction
This case took place at ATV / A Toda Velocidad, during Guillermo's role as Regional Manager.
The company operated two main business units: BPO and Software. Both operated with a small combined team of under 10 people, but faced a structural problem: the service margin did not consistently cover sales costs, and in many cases, it did not cover operational costs either.
Problem
The cost structure meant that selling did not necessarily make the operation profitable.
ATV had administrative, operational, and sales costs that were out of alignment with the actual size of the operation. There was high rent for a space that was too large, associated expenses for electricity, parking, and internet, as well as license, server, equipment, and tool costs that squeezed the margin.
Additionally, some partnership negotiations drove up sales costs, including Odoo licenses and servers. The operation also carried over liabilities inherited from the previous administration, linked to strategic decisions that affected monthly sustainability.
Two business units reviewed under the same cost structure
People across both business units
Annual billing target that demanded greater sustainability
Partnership renegotiated to improve costs and rebates
Operational migration to eliminate unnecessary rent
Audit and prioritization of inherited obligations
The cost structure meant that selling did not necessarily make the operation profitable.
Diagnosis
The analysis started by comparing expected outcomes against the actual cost structure.
Guillermo reviewed financial statements, profit and loss statements, accounting reports, ROI analysis, liabilities, administrative costs, operational costs, and sales costs.
The diagnosis was clear: the BPO and Software units were not sustainable under that structure. The margin generated by services was insufficient to cover operations adequately, and selling more under those conditions could increase activity without converting it into margin.
Strategy
Reducing unnecessary costs without destroying operational capacity.
The strategy was not about cutting just to cut. The focus was on eliminating expenses that did not add value, renegotiating sales costs, organizing liabilities, and redesigning processes so the team could operate with greater efficiency.
Protecting the staff was the priority. Reducing the team would have been counterproductive because the company needed that capacity to deliver the BPO and Software services, retain clients, and secure new business.
Before
- High rent for an oversized space.
- Small team of fewer than 10 people.
- Misaligned administrative, operational, and sales costs.
- Poorly negotiated licenses, servers, and partnerships.
- Inherited liabilities with no clear prioritization.
- Insufficient margin per service.
- BPO and Software unsustainable under that structure.
After
- Home office model implemented.
- US$1,400 monthly eliminated in rent, plus parking and internet.
- Odoo partnership renegotiated.
- Better costs and rebates per project.
- Liabilities audited and prioritized.
- Work processes redesigned.
- Q130,000 in annual savings without staff reduction.
Execution
The first decision was to eliminate rent and migrate to home office.
This decision eliminated an expense of US$1,400 per month, plus parking and internet. The operation retained its delivery capacity because the team and processes could function without maintaining an oversized physical space.
The partnership level with Odoo was also renegotiated, improving costs and increasing the rebate obtained on projects. This improvement reduced sales costs and opened the door to new business.
In parallel, the status of liabilities was audited and the liquidation of the most urgent ones was prioritized with subsequent projects. The work required coordination with the Board of Directors, management, operations, accounting, and sales.
1
Review of expected outcomes
2
Financial and accounting analysis
3
Identification of unnecessary costs
4
Rent elimination and home office migration
5
Renegotiation of Odoo partnership
6
Liability audit and prioritization
7
Work process redesign
8
Annual savings and sustainability improvement
Result
20% cost reduction and Q130,000 in annual savings without reducing staff.
The operation achieved a 20% reduction in operational and sales costs, equivalent to an approximate annual savings of Q130,000. The savings are not presented as net profit: it was an annualized reduction in costs that brought ATV closer to its annual billing goal of Q500,000 and improved the ratio between revenue, costs, and margin.
The result was achieved by eliminating unnecessary costs, renegotiating sales costs, organizing liabilities, and redesigning processes to improve efficiency. There was no staff reduction.
Guillermo's Role
Connecting financial analysis, operations, commercial, accounting, and leadership.
Guillermo led the financial and operational analysis, the identification of unnecessary or poorly negotiated costs, the elimination of rent, the migration to home office, the renegotiation of the Odoo partnership, the liability audit, the prioritization of urgent payments, and the redesign of work processes.
His role was to coordinate decisions with the Board of Directors, management, operations, accounting, and sales to improve sustainability without sacrificing delivery capacity.
Leadership Insight
Profitability is also built by correcting the structure that converts revenue into margin.
Efficiency is not about cutting costs at random. It consists of eliminating costs that do not add value, renegotiating what affects margins, and protecting the capacity that sustains delivery to the client.
In this case, reducing staff would have been a misunderstood savings. Without the team, ATV could not deliver its services, retain clients, or open new business.