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Ways to Improve the Efficiency of Small Business

In this article, I want to show simple but real ways to improve business performance. In the article we dealt with two, it seems to me, the main factors affecting the efficiency of production in small business. Optimization of other factors is also important and requires constant attention. 

Just like if you have an email marketing agency and you want to improve its performance then we need to focus on the following factors. However, I do not want to bring the well-known commonplace about the need to save energy resources, use energy-saving technologies in production, optimize transportation costs, and rent a production room with a minimum rent.

Introduction

I want to repeat the above already repeatedly that all the funds saved from improving the efficiency of all components of the production process will replenish your profits. Therefore, you should use all possible ways to improve the efficiency of your business.

 It should also be said about the interconnectedness of many factors of cost reduction among themselves. For example, increasing the number of parts manufactured at a time, we reduce the complexity and get the opportunity to reduce the price of the material. On the other hand, by modernizing the technological process and getting rid of some equipment, we, making a profit from the sale of equipment, reduce energy consumption.

 I want to illustrate all of the above with an example from my practice. One of the enterprises that I created was a furniture factory that specialized in the production of upholstered furniture. I created it, as they say, from scratch and gradually increasing production, brought it to quite decent size and a efficient enterprise.

Ways to increase efficiency from our own practice

Initially, my business produced analogs of already known products. However, from the very beginning, the main emphasis was on the specialization of production processes. What usually consists of upholstered furniture, for example, a sofa? First, from a wooden frame, spring blocks, polyurethane foam gaskets, and upholstery from fabric or leather, armrests.

Therefore, initially, I allocated the manufacture of frames in a separate workshop and began to produce them not only for myself, but also for other factories that did not have a carpentry workshop. In addition, sometimes for other factories it produced much more than for itself. In a short time, this workshop grew from one employee to 5-6 full-time employees and was the most profitable in the entire enterprise.

I will give just a few examples that are encountered at every step and how, by correcting simple mistakes, you can significantly increase the efficiency of your business. 

Wrong or unspecified task setting for employees


Moreover, not only skilled workers. I have seen in some businesses how long and painfully the workers thought what was required of them, and then long and painfully searched for materials and tools to carry out the assignment. At least half the time spent on the task wasted idly. Moreover, how many such days are in a month? It is easy to calculate the loss for a month and for a year. In addition, if the businessperson considered this, he would not complain about the fate and inefficiency of his business.

The truth seems to be common – tasks must be issued specific and provided with the proper resources for their implementation. An employee at his workplace must fulfill his immediate duties.

Holding lengthy meetings or conversations related to production

Some executives think that by holding meetings with a sufficiently large number of employees, they increase their status and their authority. When you don’t call such a business, the answer is almost the same – sorry, I have a meeting now. I even started to think that it was an excuse that they did not want to talk. Then he was convinced that they endlessly confer. In addition, they do not get how much they lose on this. I find small business meetings a complete waste of time. As far as I remember, I have never held a meeting in any of my business. In addition, I think that I saved a lot of money on this. In small business, meetings, all kinds of meetings should be excluded.

Choose the right business name

The wrong name of a small business leads to significant losses in its effectiveness. Many believe that this is a more important issue for service businesses (cafes, restaurants, hairdressers). However, this is far from the case. Moreover, for manufacturing businesses, this question is very important. If the name of a small business that produces high-quality products fits well by ear and is well remembered, then its products are much more in demand. Sales are rising. In addition, of course, the efficiency of small businesses is growing.

In addition, a sonorous name, in addition to a quality product, allows you to create your own brand over time. In addition, branded goods and services sell much better, and their prices can be higher than that of unnamed goods. As you can see, this rather simple question can significantly increase the efficiency of a small business; give an impetus to its rapid development.

Inability, unwillingness or fear to work with partners

I do not mean partners in my own business, but partnerships with other small businesses. I do not know for what reason for the aforementioned, but the mutually beneficial partnership of small businesses has a great potential for increasing efficiency, for additional earnings.

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