A word that is often used throughout the business world, ‘efficiency’ is often given many different meanings. However, when it comes to finances, it is at its most relevant, particularly when trying to get to grips with a narrow profit margin. Businesses seeking greater efficiency can do all sorts of things to get value for money and everything is done as quickly as possible.
The first thing to consider is how much money is spent on essentials like office space, utility bills, and technology. Looking for a cheaper energy provider, for example, is useful for saving money. Around 320,000 domestic and business customers in the UK switched energy supplier in the year until January 2017. That extra money saved takes little more than a phone call or email to get done.
Money isn’t the only precious commodity to businesses. Time is just as important and is often connected to finance. A time management or project management app can help to make sure that every minute is used effectively – Clarizen, 10,000ft, and Asana are all good examples. They can be used across your business and can make communication on projects far simpler.
Speaking of time, if your business relies on the delivery of raw materials, it would be a good idea to think carefully about when you need them sent to your premises. Choosing a local supplier means that delivery times will be reduced, but if you have to go further afield, consider same day delivery from TNT. This will give you enough time to prepare your product and meet production deadlines.
When delivering products yourself, same day delivery can make all the difference where efficiency is concerned. Choosing this option will mean not incurring any late delivery charges that, when stacking up, can lead to a surprisingly large bill.
Smaller businesses may not have the resources to hire staff to work exclusively in one area e.g. finance. However, in asking whatever staff your business does have to do two jobs over the course of a week, it can lead to greater efficiency.
If, for example, you have an administrator, see if they have the skills to manage your accounts. If so, ask them if they can handle both. In doing that, you save on paperwork in registering a new employee and have a smaller, more manageable team to oversee.
Finally, think about what your business needs in relation to staff, office space, and equipment. Do a thorough inventory and see what you need to keep and what you can let go.