Looking For More Profit....Look To Operational Efficiency
Operations Can Make Or Break Your Company
The operational efficiency of any Company is where money is made and lost. It does not matter what type of business you are in, Operations can have a huge impact on the profitability.
Whether you manufacture a product, deliver a service, or sell a product, your company is involved in Operations. This area is typically overlooked as a needed area of improvement since a great majority of business owners consider themselves to have the operations under control.
"...But I Have Been Doing This For 30 Years"
Most owners would say “How could I improve, I have been doing this for 30 years”? Most business owners get into business because of something they know or something they know how to do.
They are good at something, decide to start a business and begin doing everything themselves.
This is a description of how most entrepreneurs start out. They have a desire to do something beyond just going to work.
Through Growth, Business Get's More Complex
As the owners business grows, the ability to do everything themselves wanes away as it is not possible to do everything themselves.
At that point the owner is required to learn all of the 4 core functions of business, marketing, finance, operations and management. The role of each of the functions continues to get more complex as the business grows.
In operations, the owner now has to rely on others to do the work that he or she once did their way.
Relying on others can sometimes be a huge frustration for the owner. He or she has just a certain way of doing things. Now he has to get more business to keep everyone working, has to spend time with the bank and spends time managing the people that he has now hired because the business has grown rapidly or even over many years.
The Little Things...
As the business grows, it gets more difficult for the owner to keep the pulse on all that is going on. Little things slip by. Employees do things more and more on their own as the owner doesn’t have the time they used to have to watch every detail of the business.
Little things such as an extra half hour for lunch or maybe buying 5 items instead of the 2 they actually need to do a job take place without the owner’s knowledge.
Typically, the owner is never aware until a major event takes place; that is usually when money gets tight. That is when the owner is paying attention and starts asking questions.
The owner may find the issues that are consuming all of his money. Most get mad, yell at their employees, tell them to never do it again and move on to the next problem that plagues their day without ever documenting the corrective action. It will happen again.
Putting Out Fires...Before They Start
Most owners are just responding to the fires, those issues that require immediate attention and that typically leaves little time to develop the systems, processes and measurement systems.
They just can’t watch everything, it is impossible with the coming and going of employees and seasonal ups and downs of the business.
Today, business owners have to run their companies different, or their business will not be here in the next 3 – 5 years.
When Is The Economy Going To Improve...
The economy will not be the same again, if ever, so every business owner needs to be looking at all aspects of their business.
That is why you are reading this post, you want to improve. I want to show you a method to improve the efficiency and create the best team of employees possible.
You can do it, you might need some help, but understanding systems will be a huge leap forward in making your business the best that it can be. The economy is requiring it, the only question that remains is what are you going to do about it.
FREE Download - How To Increase Operational Efficiency - This FREE 29 Page downloadable PDF will walk you through all of the elements needed to help improve the overall operational efficiency of your business. In this economy, you have to stay focused on profits in all areas of your business.