Running a small business can prove a difficult challenge specifically when you see many small companies fail each week and dissolve.
It is a difficult challenge to try and increase the visibility of your business whilst ensuring you have enough cash in the bank to invest in new opportunities. Here are some suggestions to make your company more efficient.
Take Calculated Risks
If you want to stand out from the crowd and really start to bring in some credible money then you may need to step outside your normal comfort zone and take some risks. This could be to invest in a new project or similar. To do this, you may need some initial cash in the bank to help fund whatever the project plan is.
If you do not have these initial funds then you could maybe get a loan. People with business bank accounts will generally have a relationship with their bank where they have some history to show their incomings and outgoings.
As long as there is a sound stable history of payments then this is good evidence to show that you are a low risk for the bank to maybe give you a cash loan. The bank way want to understand in a lot more detail exactly what the money is for and may even ask you for the project plan.
Productivity Improvement through People
Your employees are key to the success of a business. Keep them happy and motivated and they will want to work harder for you and put in a little more effort. This may include working extra hours without you even requesting it or doing that little bit more to get that job over the line.
Treating your employees with respect and not only listening but taking on board their feedback in a constructive way will work a treat.
It is interesting to see how big companies approach this where companies such as Virgin have posted everywhere on their company statements that they value their employees but other companies such as Rolls-Royce state repeatedly they value the customer.
I suppose a balance of the two of these is needed.
The amount of inefficiency in a business is sometimes quite a surprise when identified. This could be as simple as old process’s that have not been updated to reflect modern working practices and things are completed the same way that historically has always been the same.
It is one thing identifying waste in your company but then taking the corrective action to make the change is the key action. You may employ an external person or company to help you on this – for example a greenbelt or blackbelt in lean six sigma or you may look to just empower your employees to challenge business as usual and make a change.
Some business even look to implement and improvement scheme where employees are financially rewarded for suggesting and helping to implement and activity that improves efficiency.