Did you know that many companies lose 20 to 30 percent of their yearly revenue to inefficiencies? When you’re running a small business, making your company more efficient is essential to your continuing success. Here are five ways to make running a small business more efficient.
1. Store Your Data in One Place
Not being able to find the information you need is a major source of inefficiency for businesses. Every minute you waste looking for information is a minute that you can’t use to bring in new customers and grow your company. If your business’s information is scattered between many folders on your computer or many filing cabinets in your office, you’ll spend a lot of time looking for the information you need to run your business.
To become more efficient, store all of your data in once place. Starting to use omni-channel cloud-based software is an easy way to make this change. With this software, information about your customers, orders, inventory, issues, campaigns, and other key business functions are easy to locate.
2. Improve Communication between Departments
Poor communication is another source of inefficiency in businesses. Employees need to wait for their coworkers in other departments to send the information they need, and this takes time. They may receive the information they need too late, or they may get the wrong information and work with outdated data. This can lead to costly errors, and work needing to be re-done.
To improve communication at your small business, use a cloud-based ERP system to store information from every department. This eliminates the need to rely on others to send you information, and eliminates the broken telephone effect that can sometimes occur when employees pass information between departments.
3. Automate Your Processes
When you’re running a small business, you do a lot of the same tasks every day. These repetitive, boring tasks aren’t a good use of your time or your employees’ time. When you spend too much time doing repetitive tasks, you don’t have time to focus on higher-level tasks that will help the company grow and become more profitable.
Many repetitive processes can be automated, so you don’t need to keep starting them from scratch every time. This can save a lot of time throughout your company. If you spend a lot of time trying to get payment from customers, send automated payment reminder emails, instead. If you spend a lot of time creating reports from scratch, use automatic analytics gatheringto quickly create your reports.
4. Use Scalable Technology
Choosing new technology for your business and learning to use it can lead to inefficiency. You need to choose a new program, get it set up, and teach your employees how to use it. The company will have lower productivity until everyone becomes proficient in the new technology. Since this process is inefficient, you don’t want to need to upgrade your technology regularly as your business grows.
To avoid this source of inefficiency, choose a scalable platform for your small business. As your company grows, you can keep using systems that you’re already using and that everyone’s already knows how to use. The alternative is getting a new system every year or two and suffering a drop in efficiency every time.
5. Protect Your Business’s Data
When you’re running a small business, your business’s data is incredibly valuable. Data about your customers, orders, inventory, marketing campaigns, and other key business functions is stored on your computers. If an employee loses their laptop, or if someone spills coffee on their computer, you could lose valuable data. It takes a lot of time to rebuild all your lost data, and this is very inefficient.
To stay efficient, make sure to protect all your business’s data. Using a cloud-based ERP system is an easy way to do this. Since your data is stored on the vendor’s servers, you won’t lose any essential data if your computers get lost or damaged.