I know what you are thinking. You think that every business needs to take efficiency seriously regardless of their size. And you are right to a degree. But, the truth is that your small startup needs to take efficiency more seriously than the rest of the competition. As a small firm, the odds are firmly not in your favor. To balance them, you need to make smart business decisions that help you stay level or in front of the competition. Efficiency is a great tool in your armory, and it doesn’t cost a fortune to incorporate it into your company. All you have to do is follow the dos and don’ts to land on your feet.
Do: Create A Business Plan
It is amazing how many small firms start life without a plan. In simple terms, it is career suicide because you lack the framework of success. A plan will give you an idea of how you should operate as a business, which will affect your success. Plus, it starts you on the right track instead of floundering around trying to find your identity. Always draw up a plan even if you think you have a cover for every base.
Don’t: Have A Short-Term Vision
Business owners only tend to think about the short-term because the short-term is concrete. You can see your short-term future unfolding before your eyes, and it is a nice sight. Plus, we live in a society that only thinks about the short-term as opposed to the long-term. Don’t do that with regards to efficiency. Your efficiency levels need to stay high all year around. When they drop, so does your advantage over your rivals. And, it takes more work and unnecessary cash flow to get them back to where they were before.
Do: Use Effective Methods
Okay, this one sounds like common sense. But, just like with the business plan, business owners choose the wrong methods that don’t encourage efficiency. The best example is 5S method. The 5S method is a lean process management technique that utilizes everything in your business. The logic is that the business doesn’t waste anything, no matter how insignificant it seems. Waste is the enemy of efficiency because you can’t have efficiency if you have waste. The 5S program is proven to maximize efficiency and profit. If you want to learn more about it, follow the link above.
Don’t: Forget The Accountant
If you want to run a business with no waste, you can’t afford to waste your money. As a small firm, you won’t have money to waste in the first place. Thankfully, you don’t have to if you hire a good accountant. Accountants are professionals with money if there is such a thing. They know when to pay, when not to pay, and when to save. They also know how to cut costs so that the cost of running your business is cheaper. If you don’t have one already, it is a big mistake. They might cost a bit of money, but they will save you more.
Do: Embrace Technology
Technology is your diamond in the rough. The right tech will do the job of a handful of people, and to a higher standard. Better yet, it is cheaper than employing a new member of staff. Of course, you need staff to monitor the software because it isn’t able to do it alone. But, that staff member is one person as opposed to five or six. Also, technology improves your understanding of your business. It gives you all the relevant data and information at the touch of a button. With that info, you can make informed decisions that maximize the firm’s efficiency at the touch of a button.
Don’t: Rely On One Customer
There are firms that sell the majority of their products to one customer. But, what happens if this customer jumps ship? And, what happens when you have a disagreement? In both cases, you will find yourself in an uncomfortable position. The trick is to sell to a variety of customers so that you can keep the supply chain running. If one client does leave or you have a disagreement, you don’t have to bother too much. Of course, you want to keep their custom, yet they should never hold you to ransom. If they know they are your only major client, they will take you for a ride.
Your efficiency levels are a big deal, and you need to take them seriously. If you follow the dos and don’ts above, you will cover most bases.