Are You Ready to Improve Your Business' Efficiency?
Are you ready to improve your business’ efficiency?
Why is efficiency good? There are several reasons. The goal most people start with is that more gets done with the same resources. That leads to increased cost efficiency, which improves profitability and competitiveness. Another goal is to gain consistency, which helps improve repeat business, and therefore profitability.
Standardized processes and systems are key steps toward efficiency.
Off on a tangent, many business owners think they need to stay small to be competitive, because big companies are too expensive. But big companies become more cost competitive by developing economies of scale. Where does economy of scale come from? Processes and systems plus volume.
The real point of this post is that more financial wealth comes from owning a large company than from taking income from a small company. But large companies can be harder to manage and lead than small companies due to the additional moving parts. The solution is to create processes and systems early before it gets complicated. Systemizing a $500K business is far easier than a $2Mil business, is far easier than a $5Mil business.
Try this approach going forward to be certain you are working toward your goals successfully. If you want to learn more—please connect with me.