Business efficiency means making the most out of what you
have; a fundamental discipline of running any company. As a small business
owner, your key assets will include things like cash, employees, vehicles,
premises, and access to products and services, but how often do you check to
make sure they are delivering maximum efficiency for your business?
Outsource for efficiency
Outsourcing business functions such as HR and bookkeeping
can create real cost-saving opportunities by freeing up a business owner's time
that could be better spent on finding ways to improve the company's prospects.
Richard Contreas and Mark Findlay, founders of luxury floor
company Harvey Maria, outsource almost all their business processes to operate
with a team of just three full-time staff. Using an online portal to outsource
their accounting, CRM, e-commerce, warehouse, and stock level processes has
enabled them to focus on growing the business and boost turnover by 50% year on
year.
Time to switch suppliers?
While it makes good business sense to have reliable
incumbent suppliers, over time they will be looking to increase their prices
for the products you buy from them, so they should be reviewed on a regular
basis. You may find cheaper prices from fresh suppliers you haven't used
before, while improved overseas trade could make an international supplier more
viable and cost efficient today than previously.
Similar principles should be applied to business utilities,
such as telecommunications and energy. Christian Nellemann, CEO of business
services firm XLN Telecom, says: "Since the government did away with
monopoly providers in favour of central regulation, a number of smaller
suppliers have emerged to offer exactly the same products but at a lower cost."
