Running a small business can be one of the most difficult ways to make a living. In fact, only half of businesses make it past the five-year mark.
Staying in business requires consistently staying in the black, not an easy task in the modern marketplace. If you want to ensure that your company always makes a profit, you need to improve your business’s efficiency. Below are four strategies to help make your business more efficient.
1. Budget Everything
One of the biggest reasons that businesses bleed money is the lack of proper budgeting. If you don’t know all the ways your business is spending money, you won’t have the ability to get costs under control. Make sure every single expense is properly accounted for. Not only is this often required to pay taxes, but you’ll also discover ways you’re losing money. Having all that data can make a huge difference in identifying and fixing inefficiencies. It also helps to keep your employees accountable.
2. Outsource Strategically
Another way to increase efficiency in your business is to outsource strategically. Consider the core processes of your business. For example, if you own a number of ice cream parlors, obviously your core business process is serving ice cream.
However, payroll is not a key business process for an ice cream parlor. In that case, you may be able to benefit from outsourcing it to increase efficiency. Especially if you have limited hiring ability, outsourcing can ensure expert work is being done, while your employees focus on what your business does best.
3. Train Your Employees
One way to have a more efficient business is to have employees that work as a cohesive unit to create overall stronger operational efficiency. Having clear and consistent expectations for your employees can help them know what to focus on and how to accomplish the business’s goals.
Another way to accomplish this is through the completion of training programs that focus on operational efficiency. One example of this type of training program is the Lean Sigma Six Training online and in classroom courses. Check for a Lean Sigma Six consulting provider in your area to discuss the best training regiments for your employees.
4. Automate Processes
One way to increase efficiency is by implementing automation in your business processes. However, you don’t have to invest in expensive hardware. Instead, you can use cost effective software to do so.
Such software, for example, can automate your social media postings across multiple platforms. Implementing automation software can free up time and resources so they can be reallocated to where they’re better needed.
Running a business can be remarkably difficult. Business owners need as much help as they can get. If you want to stay profitable, you need to run an efficient operation.
The four tips above, rigorously budgeting, carefully outsourcing, thorough training, and automation can help you make your business far more efficient.
About the Author
Lizzie Weakley is a freelance writer from Columbus, Ohio. She went to college at The Ohio State University where she studied communications. In her free time, she enjoys playing with her Husky, Snowball, camping, and binging on Netflix. Connect with her on Twitter here: @LizzieWeakley.