Every business can improve its business efficiency. This is not just for manufacturing companies and widget makers. Businesses are inherently inefficient systems at converting their inputs of time, money and capital into profit. They must always be making trade-offs between their utilisation of time and money against output and quality whilst deciding who they are doing this for, why and where. And every business is a team, and teams can be hard to manage.
5 benefits of improved business efficiency
With improved business efficiency the directors of the company will achieve better utilisation of staff time and money which drives increased profitability.
Lower staff churn
Increased business efficiency will bring with it happier, more engaged staff. Their roles will be better defined, more rewarding and better understood, their jobs more secure, there can be scope for increased salaries, bonuses and improved benefits.
You can sharpen your competitive edge whether that’s focused on price, service or your product. With the additional time and cash flow created, that your competition doesn’t have, you will have an increased competitive advantage.
There is a compounding effect on profits by producing more at a lower cost. With better utilisation of time, a company can make more products or deliver their service more often at a lower cost. Selling more will increase your profits as will improving your margins.
Increased business growth
By being more efficient you can increase your market share before hitting capacity issues. Increased cash flow means you can take on new staff, develop new services and take a few more risks to help expand the business.
Improved business resilience
With improved capacity you can better withstand market shocks, competitive threats and varying customer demands. For example, if you were affected by currency fluctuations, your competition lowered their prices or released a new service your highly productive business can absorb those changes.
We can help you improve your business efficiency through our bespoke business productivity improvement programme. We'll make your workplace better, your staff happier and more productive and your business grow and increase profitability. Find out more.