Efficiency is one of those elusive buzzwords in business circles that everyone understands, but few people know how to pursue. You’re likely aware that a more efficient set of business operations will create a more productive workforce, using your resources optimally so that you’re able to generate higher profits. But when you actually set about searching for areas to make more efficient, you can often end up at a loss. That’s why we’ve compiled this quick guide – to help you work out which areas of your business are best placed to be made more efficient.
There are structures and processes that your business will operate with that you may be unaware of. You’ll be less aware of them because you’ll think, “this is how it’s always been done”. But the truth is that structural issues and weaknesses in your processes are likely to be the single biggest source of your business’ inefficiencies. As such, it’s worth taking a macro view of your business, working out where time and money are wasted along your value chain, not by human error, but by the systems you’ve built to process that value chain. Once you’ve located an inefficiency, it should be relatively easy to find a solution to.
Dovetailing with improving your work processes is the technology that might be able to help you streamline systems and get your staff firing on all cylinders. Here, you’re looking for the software packages that businesses like yours at the cutting edge of the market are using. The better technology you have at your disposal, the more likely you are to be able to build a team that works in unison towards common goals. Managed IT services firms can help you tackle your technology in a smart way if you’re not sure where to start with your current tech stack.
Invest in People
There are two main ways in which you can invest in the human resources that support your business. One is to hire new employees. That’s because more employees tend to get more work done collectively, and if you hire smart, experienced workers, they’ll bring a new energy and knowledge to your team. The second way to invest in your staff is to train them. Make sure you’re continually getting the most out of your staff by making them better workers – it’ll help them become more productive in their roles.
Finally, it’s your finances that will often dictate in real terms how efficient your firm is. You’ll be able to see, on your balance sheets, how much you’re spending on labor and other overheads, and how much you’re generating in sales. What tends to happen when you’re making your firm more efficient is you’ll see your margins grow: your overheads will go down, and your sales and profits will rise. Use this as a measure to observe the success of your efficiency savings so that you know when you’re on the right track with your interventions.
Make your firm more efficient and productive with this short guide, which was designed to help small businesses thrive.