A lot of first-time entrepreneurs believe that the issue of efficiency is something that cannot be improved without further resource investment and they couldn’t be more wrong. Sure, new purchases, hires and innovation can make a massive difference in productivity, yet, sometimes all you have to do is make a mild adjustment to your company’s infrastructure.
With a couple of inexpensive innovations and mild rearrangement of your business model, you could achieve a massive boost in productivity in just several weeks. Here are some of these tips.
1. Outsource non-core tasks
One of the simplest ways to boost the efficiency of your business is to focus on a single task and outsource everything else. You see, the truth is that your small business simply can’t hire enough experts in order to peak in all aspects of a business.
A person in charge of a team in a specialized company (in the fields of IT, HR or digital marketing) will always perform this task better than your own people. So, why even bother with this while your company is still in its early stages. Instead, focus on sales, production or services that you provide and leave all of these logistical tasks to someone else. As your company grows, you might decide to start handling these tasks in-house, even though this is definitely not mandatory.
2. Keep the cash flow in focus
Cash flow is vital both for your day-to-day operations and to any change you may intend to make in the future. This is why you need to ensure that it’s sufficient for both of these tasks at all times. So, you need to A) introduce a tad more frugal spending policy and B) look for means to provide your business with a capital injection whenever it is required. The latter may simply be getting a loan, selling equity in your company, the probability of finding a partner or even selling invoices to a factoring company. Keep in mind that you need an answer to this question long before it actually becomes an issue.
3. Utilize technology
Perhaps the most straightforward way to save money and increase efficiency is to properly leverage technology. An outstanding HR platform can allow a single HR representative to do a job of an entire department. Same goes for virtually any field of your business.
Furthermore, a proper use of digital marketing to promote your business can yield a far greater ROI than any traditional marketing technique. These are just some of many examples on how, with the help of the latest tech trend, you can boost the productivity of your brand as a whole. As for the tools and gadgets, it’s pretty obvious how smart technology saves both time and effort.
4. Keep your eye on relevant metrics
Another thing you need to learn how to do is to differentiate between relevant and irrelevant business metrics. Now, before we start a heated argument about the fact that no metrics are ever, truly irrelevant, it’s also important to understand that, for the time being, you need to set your priorities straight. Therefore, your primary focus should be your sales revenue, your net profit margin, your sales growth (even though week-to-week reports may not be as revealing) and customer loyalty (retention). In this way, when there’s a problem, you’ll be able to narrow down its symptoms, which will make it much easier to find the cure.
5. Set milestones
Setting goals is a practice that every entrepreneur does, as soon as they start their business. However, in order to realize these goals, you sometimes have to wait for years, which is longer than most companies have. Aside from this, if you set a five-year plan and set no milestones along the way, you’ll miss out on an opportunity to steer your business back in the right direction once it starts going astray.
This is why these milestones are so incredibly important. You see, even the best plan can’t predict all the circumstances that will occur over the longer period of time. Therefore, adaptability is the trait necessary for success.
As we promised, techniques like setting milestones, juggling your cash flow and tracking relevant metrics ask only for a bit more of your time, whereas outsourcing and investing in technology even stand to save you money in the long-run. In other words, all of these hacks are not only logical but it is also hard to find a single reason not to pursue all of them. Most importantly, due to the fact that they give immediate results, you’ll also get a short-term incentive to carry on with these positive practices.
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