Business Education

7 Proven Ways Small Businesses Can Increase Their Efficiency

Efficiency is the lifeblood of small businesses. In a competitive landscape, optimizing operations and resources can mean the difference between thriving and merely surviving. Fortunately, there are proven strategies that small businesses can implement to enhance efficiency.

Effective Strategies Small Businesses Can Use to Improve Efficiency

As a small business owner, you know that efficiency is key to success. With limited time and resources, you need to be able to get as much done as possible as quickly as possible. That’s where efficiency comes in.

By implementing a few simple strategies, you can boost your small business’s efficiency and productivity, freeing up your time and resources to focus on the things that matter most. So, here are seven proven ways to increase efficiency in your small business that you can use:

1. Automate Repetitive Tasks

One of the best ways to improve efficiency is to automate repetitive tasks. This could involve using software to automate tasks such as email marketing, social media management, or customer support. You can also use tools to automate simple tasks such as data entry or scheduling. By automating repetitive tasks, you can free up your time and energy to focus on more strategic and important work.

2. Delegate Tasks to Your Team

If you have a team, don’t be afraid to delegate tasks. This is a great way to free up your time and expertise so that you can focus on the most important aspects of your business.

But, remember, when delegating tasks, it’s important to be clear about your expectations and to provide your team with the resources they need to be successful. You should also check in regularly to monitor their progress and provide feedback.

3. Set Clear Priorities

It’s important to set clear priorities for yourself and your team. This will help you to focus your time and energy on the most important tasks. When setting priorities, it’s important to consider the following factors:

Importance: How important is the task to your overall goals?
Urgency: How soon does the task need to be completed?
Effort: How much time and effort will the task require?

So, be sure to gauge its importance, prioritize its urgency, and estimate how much time and effort it will realistically take. This way, you’ll have a much better chance at success in such endeavors.

4. Streamline Your Processes

Take some time to review your business processes and see where you can make improvements. Are there any unnecessary steps that can be eliminated? Are there any tasks that can be combined? By streamlining your processes, you can reduce wasted time and resources.

5. Invest in the Right Tools and Technology

Investing in the right tools and technology can help you to improve efficiency in all aspects of your business. This could include using software to manage your finances, customer relationships, or inventory. You could also invest in hardware such as new computers or scanners. Of course, when choosing tools and technology, it’s important to consider your specific needs and budget.

6. Take Breaks

It may seem counterintuitive, but taking breaks can actually help you to be more efficient. When you’re constantly working, you’re more likely to make mistakes and get burned out. Taking regular breaks will help you to stay focused and productive. Get up and move around, take a few deep breaths, or step outside for some fresh air.

7. Create a Positive Work Environment

A positive work environment can have a big impact on efficiency and productivity. When employees feel happy and valued, they’re more likely to be engaged and motivated. There are a number of things you can do to create a positive work environment, such as:

Provide clear and regular constructive feedback.
Offer opportunities for professional development.
Recognize and reward employees for their accomplishments.
Create a culture of collaboration and teamwork.

By implementing these seven strategies, you can boost your small business’s efficiency and productivity, freeing up your time and resources to focus on the things that matter most. Efficiency is the backbone of small business success. By implementing these seven proven strategies small businesses can optimize their operations, reduce costs, and improve overall productivity.

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Request your FREE copy in any of the following ways:

Visit Waters Business Consulting Group
By phone 602-435-5474 or
By email: Steve@WatersBusinessConsulting.com

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How to Spot Bad Business Ideas to Avoid Wasting Precious Time

April 19, 2018 No Comments

Whether you’re running a business currently or looking for a business idea to get started, you definitely want to avoid bad scenarios. While there are stories of companies defying the odds and becoming successful, these are few and far between. The reality is the majority of new businesses fail. (Or established businesses trying something new that ultimately fails — think New Coke.) How to Develop Good Business Ideas Before we get into the bad, let’s take a quick look at some good ideas. If you’re already in business for yourself but want to branch out, there’s probably a reason why you feel that way. Take a little time to seriously reflect on this notion. Ask yourself if you’re no longer interested in your core product and/or service. Also, think about a product or service that can really complement your current offerings. If you want to make more money sooner as an entrepreneur, you need to learn how to spot dead-end business ideas and say no to them so you can focus on the good ideas. This is especially important when the ideas are coming from your inside your own head. It’s easy to be protective of your own ideas because they feel like your own children, but you have to learn to be more objective if you want to create something profitable. —Entrepreneur.com You can seek objective advice from your peers. Other business owners might easily spot something that’s totally eluding you at the moment. If you’re not already a business owner but want to start the process, then look to your favorite hobbies. Imagine how you can monetize what you most enjoy. Ways to Spot Bad Business Ideas If you’re looking for a business idea, you want to settle on something with real promise. But, how can you peek into the future? Well, there is no magic crystal ball to foretell precisely what will unfold. However, there are some red flags which typically accompany a bad idea: It doesn’t meet a real need. If the idea doesn’t immediately solve a problem or fulfill a need, that’s a giant warning sign. After all, how do you market a product or service that doesn’t meet an actual need or take care of a problem? It isn’t scalable to other markets. Another problematic scenario is if you can’t imagine how it will scale to a larger market. While this doesn’t mean you need to abandon it, it certainly means you need to rethink the idea. It can’t stand out over the competition. Ask yourself if the idea can compete in the real world against its closet competition. If you can’t readily answer that question, you’ve already got a big problem. It’s too complex to easily explain. Any business idea you can’t explain in an elevator-pitch style will typically experience a lot of problems. Put another way, if you can’t explain it in simple terms, consumers won’t understand what it is or how it works. How do you spot bad business ideas? What other advice do you have to avoid wasting time with different ideas? Please comment and share your thoughts and experiences! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Small Business Owners in the Trades – Should You Provide Your Techs with Tools or Have Them Supply Their Own?

October 10, 2024 No Comments

Trades-based small business owners, from plumbers and electricians to HVAC and carpenters, often ask one question that sparks debate among newcomers and seasoned professionals alike: should you provide your technicians with tools, or should they bring their own to the job? This decision is far from trivial because it can significantly impact your business’s operations, finances, and even team dynamics. On one hand, supplying tools ensures consistency and control over equipment quality, but it comes with substantial upfront costs and ongoing maintenance responsibilities. On the other, having techs supply their own tools can reduce your overhead and potentially attract more experienced professionals, but it may lead to inconsistencies in work quality and create liability concerns. With this in mind, it’s important to take a close look at the pros and cons of each approach, exploring how this choice can affect your bottom line, workforce satisfaction, and overall business efficiency. Whether you’re a seasoned trades business owner re-evaluating your current policy or even a newcomer to the industry trying to make an informed decision, this short but informative guide will help you navigate this crucial aspect of managing a trades-based small business. Tools of the Trade: Should Small Business Owners Provide Them or Let Techs Bring Their Own? When you’re running a small business in the trades, every decision counts. One big question you might face is whether to provide tools for your techs or let them supply their own. This choice can shape your business culture, affect costs, and influence your workers’ morale. So, what’s the right move for you? Well, it depends on several factors, some of which are more consequential than others. Now, let’s get into the nitty-gritty and provide a few answers. Why You Might Want to Supply Tools Providing tools shows commitment to your employees. Just think about it: when you hand over a quality tool, it sends a message. It says, “I trust you to do your best work.” Plus, you can control the quality of the gear. If you’ve ever used a low-quality drill or a dull saw, you know how much it can affect the job. When you supply reliable tools, you ensure that your team has what they need to get the job done right. Consider this scenario: you have a new tech on your team. You give them top-notch tools. They feel valued and more confident about their work. That confidence can translate into higher-quality results and fewer mistakes. When you supply the tools, you can also streamline your operations. Everyone uses the same gear, which means less time wasted figuring things out. But, don’t forget about cost factors, either. Supplying tools means you’ll have to spend money upfront. Depending on your business size and the number of employees, this can add up fast. If your workers have their tools, you can save some pretty penny while also encouraging them to bring their best selves to work. The Case for Techs Bringing Their Own Tools On the flip side, letting your techs supply their tools can encourage a sense of ownership. When someone buys their tools, they’re likely to take better care of them (and not forget them on a job site). That personal investment can lead to pride in their work. Also, if your techs have their own favorite tools, they probably know how to use them best. This familiarity can speed up jobs and enhance quality. When the tools are owned by your employees, they’re the master of their domain. No need to seek approval from anyone – not even the boss. This makes their freedom palpable. Techs don’t have to wait for a painfully slow approval process. Plus, they don’t have to suffer delays to wait for the tools to arrive. All they need is right there, ready for them to pick up and put to use. Techs who own their own tools feel empowered to work on their term. They can dive into a project without bureaucratic hurdles or logistical roadblocks. Finding the Right Balance So, where does that leave you? It’s not always black and white. Some businesses choose a middle ground. For example, you might provide basic tools and let your techs bring specialized ones. This way, you maintain quality without breaking the bank. Additionally, think about offering incentives for tool maintenance. A tool bonus could encourage your employees to keep their gear in shape, whether it’s yours or theirs. The Team Factor Now, let’s look at team dynamics, which play a crucial role in this decision. If you have a collaborative environment, having similar tools might strengthen that bond. Everyone’s working with the same equipment, which can foster teamwork. On the contrary, if your crew thrives on individuality, let them shine with their personal tools. Moreover, open communication is key. Ask your techs what they prefer. You might discover a shared sentiment that could guide your decision. Creating a culture of inclusiveness not only builds trust but also enhances productivity. Consider the Following Whether you provide tools or let your techs supply their own is a complex choice, shaped by your business goals, team dynamics, and budget. Whichever path you choose, prioritize your team’s needs and consider the long-term implications. Remember, successful businesses don’t just focus on profit; they also invest in their people. In the end, your decision will set the tone for your workplace, creating a space where everyone can thrive. Want to Accomplish More? Do you want your company to grow faster and earn more while you spend more time with your family doing all the things you started your business to do? We can make that dream a reality. Give us 30 minutes and we will show you how to get your life back. Skeptical? Good! Put us to the test. You can call us for your free appointment at 480-636-1720, or, if you prefer,

Reasons Why Small Business Loans are Denied

May 24, 2017 No Comments

Small business owners can easily find themselves in the unenviable position of needing capital, but, not having ready access to cash. It presents an age-old problem, buying equipment ties cash up, even though said equipment is considered an asset. Such assets can depreciate, which worsens the situation all the more. On the cash liquidity side, there are tax consequences to having a certain level of retained earnings. This is why debt instruments are a part of doing business. However, even profitable small businesses can be denied for a loan, and, there’s ample evidence to support this phenomenon. In the first two quarters of 2014, about half of applicant businesses received any funds, according to a survey conducted by the Federal Reserve Banks of New York, Atlanta, Cleveland and Philadelphia. Reasons Why Small Business Loans are Denied Unfortunately, present trends don’t show much improvement in the access to capital, or, in reducing operational costs. In fact, since November 2014, three out of ten businesses reported more difficulty in trying to reduce operating expenses, and, one-quarter reported unexpected expenses too hard to plan for, according to a study conducted by Nav (formerly Creditera), a business credit management company. If your company recently applied for business credit and was rejected, you’re not alone. So what can you do if your business credit application is denied? Start by trying to find out why. The Federal Trade Commission suggests submitting a written request for the reasons within 60 days of the denial, and the creditor must give you the specifics in writing within 30 days of the request. Consider discussing any concerns you have with your lender, and you may be able to resolve the issues. —Washington Post Within the same survey, about 20 percent of participant companies considered closing their doors, citing two primary reasons: lack of growth and issues with positive cash flow. These factors are likely why 53 percent of all companies applied for lines of credit or loans over the past half-decade, with more than one-in-four attempting to access capital numerous times. During the same five year period, one-fifth were denied and of those, 45 percent reported being turned down more than once. Twenty-three percent of all those denied loans or lines of credit did not know the reason why their applications were denied. So, why is this happening and what makes it appear so prevalent? There are reasons why small business loans are turned down, and, it’s actually not complicated. Here are some of the most common reasons small business loans are denied: Having no credit or even bad credit. Some business owners do not realize they have two credit scores: their personal credit and their business’ credit. What’s worse, some owners have relied on personal lines of credit and have seriously driven their DTI or debt-to-income ratio into dangerous territory. Making payments on-time, keeping a low balance, and not seeking to continually open new credit lines are all necessary to improve both personal and business credit. Too little collateral. Since most business owners aren’t willing to sign a personal guarantee, leveraging their personal vehicles and home to secure a loan, there’s little to nothing left to pledge as collateral. Lenders aren’t keen and will not provide financing that constitutes an unnecessary risk. Anemic cash flow. After all other expenses are paid, lenders want to see demonstrable proof there’s enough cash to repay the loan. Too tight a margin and banks won’t be willing to approve a business loan. Lack of strategic planning. It’s often true that business owners don’t understand the loan process, including the application itself, and all necessary documentation and that can lead to being turned down. Applicants must provide a clear forecast and show a realistic, actionable plan. Under capitalization on loan applications. There are sometimes more assets available to claim than applicants realize and as a result, their loan application makes the organization appear under capitalized. Some assets aren’t immediately clear, which means all potential assets ought to be identified. Another reason businesses might have trouble securing debt instruments is industry-specific difficulties. For instance, a construction company that’s operating in a locality where people are moving away from, or, a taxi company that’s facing tougher licensing regulations or an industry disruption as we have recently seen with Uber. The best solution in the short term is to reduce your Cost of Goods (labor and materials) to improve Gross Margins and reduce Expense Overhead to increase Net Profits which will help with cash flow and operating capital. Also, negotiating terms with your Receivables and slowing growth will allow for an influx of cash. Where possible, attempt to self fund your growth. If capital is required for growth, pursue alternative lending sources other than banks. There are several available and feel free to contact us if you are in need of alternative lending sources. Want to find out about what a business coach can do for you? [shareaholic app=”follow_buttons” id=”26833294″]