The most successful businesses operate with efficiency. Regardless of the number of employees, businesses should review every process and procedure and determine how each can be made more efficient. Small business managers never seem to have enough time, are always rushed, have an overabundance of tasks that need to be completed, and constantly worry about business survival because of competition, economic cycles, lack of employees, and escalating costs due to inflation.
Creating Efficiency
Efficiency in a business is not automatic. Systems need to be established and goals established, whether a business is in the startup phase or already a mature business. Something can always go wrong in a business regardless of precautions, but the more systems that are in place, the more training that employees receive, and the more goals that are established, the less detrimental effect a mistake or misstep will have on the business. Corrections can be immediately implemented that still allow for objectives to be met regardless of stumbling blocks along the way.
Set Definite Goals
Businesses must plan. This builds a foundation and a roadmap for the future. Goals, however, must be clearly articulated, understood by everyone involved, and definitive. Increasing sales by 5% over the last quarter is an explicit goal everyone can understand. The goal of “increasing sales” doesn’t tell anyone exactly what is expected. Would the business be pleased with a sales increase of $10.00 or $100.00? Probably not, but the goal of simply “increasing sales” is not a definitive goal. Employees need to know what is expected or what needs to be accomplished to achieve the goal.
Communication and Interaction
Employees can and should learn from each other; however, communication and interaction must occur. With open communication and department and company goals established, employees can offer support and recommendations to enhance efficiency and reduce the possibility of internal mistakes. One employee or department might have experienced a particular issue that can be eliminated or minimized by another department or team just through open communication and interaction.
Assign Leaders
When no one is responsible for improving a particular process or procedure within a business, the process or procedure will likely never be improved. Assigning responsibility for various processes and procedures to different employees ensures that every critical function in a business has a gatekeeper responsible for ensuring their position runs as efficiently as possible. Constant review and accompanying recommendations become their responsibility.
Frequent Updates
All goals must be measured and assessed for effectiveness if the goals are to be relevant. A goal (or plan) without execution does nothing to improve a business and move it forward. Therefore, there should be frequent (weekly, bi-weekly, monthly, etc.) meetings and updates regarding progress depending on the importance and complexity of a particular project. If goals are not met or are currently being met, then immediate corrective action can be taken.
Operate with Efficiency
Operating efficiently does not mean keeping the status quo, which can result in stagnation for a business. Operating efficiently means changing processes, procedures, and projects after reviewing and analyzing updated and new practices as warranted. It is just as crucial for small businesses as it is for large businesses to operate as efficiently as possible. Operational improvement equates to increased profitability.
