TIME to give your business the once over. Trim unnecessary costs, become more efficient and gain and retain customers.
As winter is now well and truly over - spring is the perfect opportunity to spruce up your act.
The recession hits businesses in different ways. It could be falling orders, cash flow, staffing etc... Even if demand is there, customers want 'cheaper, quicker, better 'more than ever. Can you step up to the challenge? If you don't someone else will!
With this in mind, it's more important than ever to ensure your business is fighting fit. Fitter than the competition and fitter than it was before for a competitive edge.
10 ways to spruce up your small business:
1) Review - Where are you now - where do you want to be? Where can savings be made? Be impartial with this one though - de clutter and look forward more clearly. Don't cut important corners in the process.
2) Cut supply costs - Examine the whole chain - end to end. There are massive savings to be made at the moment and even approaching existing suppliers to improve the deal you have can be worthwhile. Can you purchase strategically rather than ad - hoc?
3) Reduce spending - Look at your internal costs. Eg, IT, transport etc..Don't spend too much time reviewing costs - it could prove to be an ineffective way of actually reducing costs. Get a list of expenses and ditch the costs that you can, improve on those that are too high and keep only the essential elements. Concentrate on areas where you have the most to gain!
4) Take control of cashflow - When the going is good it's great and it's easy to forget the importance of cashflow. Tighten your credit control - get hands on. In a small business it's even more important to be cash positive. Don't let customers use your business as a credit facility!
5) Stock - stuck? - Tighten up inventory management and ratio of turnover to stock. Keep the inventory to a minimum without compromising availability.
6) Staffing - for those with a team, it is a good chance to review the balance of cost effectiveness and the ability to deliver the level of service required to keep you in the game. Tom Martin, Managing Director of Miracles says "When managing a small team it is good practice to regularly ask your staff to conduct 'Time In Motion Studies'.
It is a basic but very effective management tool. Throughout the week ask your staff list everything they are doing on a daily basis and note the amount of time each duty took to complete. The results of which have many uses, for example staff who possibly thought they were over worked are able to show just how much they are doing... or not! On the flip side the manager is able to show staff they actually are not busy every second of the day etc. But most importantly you can immediately identify staff that are doing duplicate work, or staff who could possibly lose some work and take on similar duties from another employee to better focus their position.
Conduct annual Appraisals or Personal Development Plans. PDP's can help identify staff training and development requirements..
Of course PDP's are also a great way to spend one on one time with staff. Ideas and inspiration for the business are often obtained in these situations.
7) Use efficient processes - Investing in more efficient processes will increase your businesses health. Basically it means the team can do more without actually working any harder than they already are. Look for duplications in work, lack of procedures, bottlenecks, delays and also timing of invoicing. Identifying the problem is half the battle!
8) Consider outsourcing -
Growing your business through the use of outsourcing can prove to be extremely beneficial if the relationship is managed correctly.
Using the services of a dedicated provider in areas such as call minding, finance, marketing, administration are not limited to large organisations. Owing to the fact that outsourcing providers operate on a larger scale, it gives you the flexibility to alter the level of service to fit your business requirements without having to worry about staffing issues and costs. Your business will also benefit from 'economies of scale' normally associated with processes being performed on a larger scale.
Further benefits like, consistency of workflow, best practice methods, professional knowledge all come as part of an outsourcing package.
"We are definitely seeing a trend towards outsourcing by small businesses here on the Island says David Parker of PurpleAccounts . Those businesses who have embraced the opportunity to outsource are experiencing accelerated growth due to the business owner being able to focus completely on growing the business, meeting potential clients, winning business, without becoming bogged down in paperwork. The benefits of outsourcing can be tremendous, however, a poorly managed relationship is ultimately the reason behind up to 95% of instances where the relationship does not work out. Ensure your outsourcing provider understands and fosters the importance of open and fluid communication to make optimum benefit from outsourcing."
9) Location, location, location - It's worth shopping around for cheaper premises, you may even bag a bargain at the moment with rents falling. Sometimes it's worth running an operation from home, for others, gaining a more prominent presence perhaps by sharing premises can do wonders.
10) Marketing makes money - now is not the time to cut out marketing. Those that make clever use of their budget - no matter how small will reap the rewards. Your money can go further with a review of all activity and how effective it is for you - which costs nothing. Don't forget those existing customers - they are your greatest asset!
11) Look after your clients - look after your clients - so important I've said it twice
It's far cheaper to retain an existing customer than to have to acquire new ones. Keep communicating - don't take it for granted that they will stay with you. Believe it or not it's the little things that set you apart. Quick responses, welcoming atmosphere, using the customers' name and of course deliveringon time, every time whilst exceeding their expectations. It doesn't cost anything to do something right. Do something wrong and you will pay twice over.
By looking after your business and your customers in this way, you put yourself in a stronger position when the economic climate improves.
By Helen Parker MCIM - PurpleAccounts
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