In an era where small mistakes can be quite costly and efficiency is the watchword of nearly every business, large or small, it's essential to know how to eliminate waste and do things the right way. Some entrepreneurs struggle for years and just stay afloat. Others seem to hit on the magic formula right away. What's the distinguishing factor that sets the two camps apart?
In nearly every case, one organization is efficient and the other is not. But, are there really secrets to using your human and material resources while minimizing waste and maximizing profits? Whether each of the following nine techniques is a secret or not depends on whether you've ever heard of it before.
Some of the approaches are better-known than others, and at least a few are often unknown to first-time owners of startups. Consider evaluating each suggestion to see how relevant it is for your particular entity.
Navigation of Contents
1. Invest in Production Equipment
It's hard to part with precious financial resources, especially during the first year or two of operations when you want to keep the powder dry and ready for a potential emergency. However, it's vital to open up the wallet and purchase high-quality production equipment, machinery, and supplies. Those three things are the most relevant components of long-term financial success.
If you can't afford to buy, consider leasing for the first year. But, in the vast majority of situations it makes sense to purchase what you can. With warranties, service problems can be mitigated, and as long as monthly payments are affordable, you're good to go. Don't ignore lease-to-buy programs that offer real value and give you the chance to get on your financial feet before buying a large piece of equipment.
2. Leverage the Power of Technology
The wise use of technology can propel even a mediocre company to great heights. But if an efficient use of time and money is at the core of your values, learning to leverage the right technology, at the right time, can be the perfect solution. In the transport industry, fleet management providers offer long-term answers to age-old problems.
Not only can fleet management software, systems, and programs serve as the most efficient solution for routing, in-cab coaching, vehicle tracking, maintenance alerts, and much more, but the value per dollar spend it incredibly high. If the field is still new to you, review a comprehensive online guide that explains how fleet management is one of the true problem solvers of today's transport sector.
3. Chop Travel Costs to the Minimum
One of the largest money pits in any company is related to the time and money wasted on travel. Perhaps that's why so many organizations are reducing physical travel to a bare minimum. Virtual, online options are almost always a smarter option.
4. Learn When and How to Outsource
Outsourcing is part art and part science. It's up to you as an entrepreneur and owner to decide what chores to delegate outside the organization, when to do so, and how much to pay providers. Expect to make a few mistakes when you begin learning how to outsource.
In most cases you'll discover that, even when the expense is taken into account, sending work to specialist providers is a highly efficient way of conducting a business.
5. Spend Time on Morale
Dedicate time towards creating a work friendly environment in the office and with your remote teams as well. It's not always easy to see the link between worker morale and corporate efficiency. However, when you consider that fact that unmotivated people do substandard work, the idea becomes clear.
Workplaces that suffer from low morale, both on the part of managers and staff members, tend to develop all kinds of problems, from absenteeism to high turnover rates. When supervisors attend to a morale problem as soon as it appears, they can inject motivation and use standard techniques for bringing groups of employees out of the doldrums, like offering bonuses, adding pay incentives, and more.
6. Hone Your Online Image
Check your online image regularly. Some websites are technically perfect but lack personality and tend to convey a cold, impersonal image of the organization.
Hire a website expert who knows how to write great copy and design pages that exude the kind of image you wish to create.
7. Be Responsive to Customers
Some managers assume that taking time to respond to client and customer queries is an inefficient way of operating. But it's important to remember that even a customer interaction that doesn't accomplish much is still a productive one.
That's because it lets your buyers and clients know that you value their problems, questions, and time. Every interaction builds loyalty and sends a subtle message that you care.
8. Hold Short, Frequent Meetings
Avoid the urge to schedule Monday morning staff meetings. Those hour-long drones are the surest, fastest way to start the week off in the most inefficient way possible. Instead, consider holding several short (between five and ten minutes each) sessions throughout the week, preferably after lunch. If possible, use simple video technology to make every meeting fast, virtual, and productive.
9. Use Temps During Busy Seasons
If your industry has a busy season, as many do, don't give into the temptation to hire additional full-time, permanent employees during that first year of operations. Remember, they call it a season because it doesn't last all year. So, follow the lead of accounting firms, who know a thing or two about seasonal work with all the quarterly and annual tax filings they do.
Estimate how many extra hands you'll need, how long you'll need them, and then bring on a short-term crew for the duration. The advantage is that backlogs will not be a problem and all your customers will be happy.
And, if all goes well, you might end up with a decent number of new clients after the rush time is complete. The downside: expect to pay a higher wage for temps in exchange for the fact that they get zero job security and few, if any, benefits.