Anyone that runs a small business knows that margins can be incredibly narrow in this ultra competitive world in which were living. Thus, the key component of any business is ensuring that your company is run as efficiently as possible. This involves ensuring that your key assets are operating to their full potential, but also that you take full advantage of any opportunities open to you.
The assets step every individual business holds may differ slightly. However, it is fair to say that most small business owners,key assets will include items such as cash, employees, vehicles, premises, and access to products and services. While the way such things operates are often taken for granted, the reality is that engaging in some very simple techniques and strategies Will greatly enhance deficiency with which your key assets operate. So how and how often do you check to make sure that your asses are delivering maximum efficiency for your company?
Outsource Where Possible
One of the key aspects of any small business entrepreneur is independence. After all, this is the reason that most small business founders launch the company in the first place. Thus, there is a tendency for people in this position to believe and feel instinctively that all of the companies functions and work must be carried out in-house. And, of course, this particular approach also fits the perennial need of being a thrifty as possible.
However, the reality is that outsourcing can be extremely beneficial for any business. This was probably true in any era, but in the contemporary business climate in which it is possible to both identify and hire freelancers online with great ease, this really is the ideal time to look to outsource some of your business where it is deemed appropriate and profitable.
Outsourcing business functions such as HR and bookkeeping can create real cost-saving opportunities. These can be arduous tasks that when outsourced allow a business owner the time to instead invest in attempting to make the company more profitable. There are even contemporary companies who are known to outsource the overwhelming majority of their work. The luxury floor company Harvey Maria outsource almost all of their business, and operate on a skeleton staff of just three people.
Assess Supplier Value for Money
Another aspects of businesses which every good businessman and woman learns almost from day one is that building relationships with other people is generally beneficial. It obviously makes good business sense to have reliable suppliers with whom you have a strong relationship. However, no matter how favourably you view certain suppliers, simply because it has been preferable for you to use them for a certain period of time does not mean that this will remain the case indefinitely.
New suppliers of key components and services for your business can often offer you prices which are superior to your existing suppliers. Thus, it is diligent and indeed common sense to review your suppliers regularly. Additionally, overseas trade is becoming evermore logistically viable, so this is an avenue that you may also wish to explore.
Utilise Space Efficiently
It goes without saying that property, real estate and premises are among the biggest overhead costs to any business. It cannot be emphasised enough that any company of any size benefits immensely from ensuring that the business premises that they occupy are the most cost effective possible. Research conducted by DeVono Property indicate stats on average businesses pay around 10 to 15% too much for their office space. Given the cost of premium property in urban areas, this can be a quite considerable amount of money.
Be Aware of Latest Technology Trends
Unless you’re particularly Luddite in outlook, you will already be making use of technology within your business. However, technology news extremely fast, particularly in this age of the internet in which new innovations and companies offering useful services pop up on an almost daily basis. Many small firms consider this particular area to be either A frivolous expenditure which can be kept to a bare minimum, or one in which they cannot realistically hope to compete with the big boys.
This is a deeply flawed approach. This is one area where small firms can achieve significant improvements in efficiency and productivity, starting with a move to the cloud. In the era of the cloud, it is easily possible further small enterprises to make very large savings, given the opportunity that car competing offers to cut down on expensive hardware requirements. This is just one area in which small businesses can greatly gain inefficiency, but there are many others available if one takes the time to investigate further.
Social Media isn’t for Being Social
Aside from cloud competing, one of the most compelling phenomena in modern technology has been the rise and rise of social media. Social media offers small businesses the opportunity to advertise their wares and connect with customers with totally no overhead whatsoever. But because social media can be enjoyable and engaging to participate in, there is a tendency for some business owners to be too social with the social media!
Remember that your social media platform and profile is intended to, essentially, sell things to people. Identifying and targeting the platforms and networks where your customers and potential customers are to be found is absolutely critical. There are many competing social media networks available now; aside from the well-known Facebook and Twitter, LinkedIn has become particularly popular with businesses. It is extremely important for efficiency reasons to ensure that social media is used for business purposes only and in ways that genuinely benefit the business, and also that the correct and most appropriate social media streams are recognised and exploited.