Reducing the impact of inefficiency in small businesses
Small business owners don’t have money to waste; that is a given, but according to IDC Research, that is precisely what some businesses are doing due to inefficient work. Inefficiencies in business are thought to cost up to 20-30% in revenue over a year, and when profit margins are tight, this figure can really stretch your finances. With mounting business costs benign, a worry for nearly 90% of business owners getting this under control should be a top priority.
So your business is inefficient; now what? Firstly, you need to step back and look at all aspects of your operations and find out exactly where money, time, and resources are being wasted. Are people spending too much time waiting for authorisation to go ahead with a task or get sign-offs? Are your employees wasting work hours (recent surveys indicate workers can waste up to 3 hours of their working day)? Where and how are they wasting time? Or do you have poor quality control checks, meaning you waste time and materials due to ineffective or damaged end products that are unfit for purpose? Whatever the reason, find out where you are going wrong.
Make the changes
Once you have identified all areas of waste, you need to get organised. Making change is vital to support reducing waste and improving the bottom line. Working with your team can help you put workable measles in place that benefits the majority of your workforce, even if that workforce is just you. Using field service management software can help you to assign jobs for those working in the field easier and keep on track of all activities and costs relating to this and get to where you need to be faster; updating old software and equipment can eliminate downtime or time wasted trying to get the job is done and even looking at how you authorise work and the delays it puts on a project can all be considerations to look at changing to make your working day more productive.
Assess and learn
It isn’t enough to make the changes and leave it at that. With a quarter of billable working hours being wasted with ineffective chores, you need to be making sure you don’t slip back into old habits that are costing you money or putting new methods into action that do address the issue at hand. Keep on top of what is happening, check everything is running as it needs to be, and always be on the lookout for how to make appropriate changes that benefit you. Being proactive can help you avoid the pitfalls of inefficiency and ensure you maximise your time, resources, and finances in the best possible ways.
Inefficiency can cost you more than just money; however, when finances are being stretched to it, this is more important than ever. It is about ensuring you deliver the best possible service, products, and experience across the board to ensure you remain in good standing within your industry, remain competitive, and provide outstanding results at all times.