Increasing your business’s efficiency and profitability may seem straightforward by improving your operations and obtaining as many new customers as possible. But, there are several other things to consider when your business needs a jump-start. SCORE mentors are here to help you get the information you need to make sound business decisions.
Is increasing your profitability as simple as acquiring more customers? In some cases, yes, but this may be difficult to accomplish during an economic downturn. If increasing your sales volume is your priority, one option would be to offer discounts or specials on your most popular products. You should also consider extending your marketing reach by analyzing the demographics of your customer base to broaden your sales and marketing approaches. Expanding into new marketing channels like social media is an excellent idea in today’s tech-connected world.
A very effective way to increase your business’s profitability is to decrease costs. Perform a cost analysis to identify areas of your business that may allow for a decrease in your expenses. Work with your teams to check and optimize inventory levels; review your staffing needs; analyze your rental, office, and warehouse costs; and, negotiate with your vendors to obtain the best price for your materials and products. First and foremost, get serious about tracking and controlling your costs.
For your business to become more efficient, it is helpful to develop a continuous service and process improvement mentality amongst your staff. Solicit ideas for improvement from employees to improve workflow. Although implementing new technology can be expensive, it can pay off by enabling faster data processing and task automation. Fine-tune how you allocate time, materials and people for your operations. Some additional ideas include improving supply chains; analyzing internal processes to identify areas of improvement; documenting and measuring every process and establishing baselines to go up from; and, analyzing and optimizing your purchasing and production operations. The bottom line is that you should continuously be aware of your overall financial tracking and analysis, and service offerings.
It is important to keep in mind the people in your business who will implement these changes for the better. Brainstorm with your staff and keep the lines of communication open. Involve everyone. Create a company culture of efficiency by strategizing as a team on a regular basis. Lastly, remember to regularly review your efforts to become a lean, productive and profitable business.
Create Business Systems That Increase Efficiency and Profitability
Location: SCORE Office
Westland Office Park, Building M (at the rear)
5524 Bee Cave Road
Austin, TX, 78746
Date & Time: Friday, January 18, 2019 at 10:00 AM CST
Gwendolen will discuss automation and how to partner with systems that work for you. This easy-to-follow, course is packed with actionable steps.