There is no doubt that the impact of the pandemic and the ongoing uncertainties are challenging many businesses. The stressed owners of businesses, large or small, are grappling with the personal and financial impact of this pandemic.
Survival and success in this environment can be boosted by proactive thinking and action. Identifying and reviewing costs and efficiencies in your business will help you to recognise immediate steps and to put in place long-term strategies for a more resilient future.
Improving costs in your business
Improving costs does not mean cutting spending right across the business. It means getting the most out of every dollar you spend in and on your business. To do this, there are key steps you can take to identify ways to make your business more efficient. Honing the efficiency of your business will mean that you emerge stronger, more sustainable and ready for the future.
Review your labour costs
Labour is a significant cost for many Parramatta business owners, especially for those operating restaurants and cafes. Review labour costs and consider analysing staff rosters and updating the rosters to meet the day-to-day changes required as pandemic lockdown conditions begin to ease.
You may also consider cross-training staff for specific duties to ensure you can address any ongoing changes and future restrictions.
Value your existing customers
It costs your business less to retain existing customers. Focus on ensuring that your existing customers are receiving the product or service that they need. Ensure that you keep paying attention to what your existing customers require, as their needs will continue to change, especially in the current environment. Feedback forms, surveys, phone calls and zoom catch-ups are good tools for getting feedback. Listening to and analysing responses will help you provide a superior level of customer service that promotes ongoing loyalty.
Manage and improve your supply chain
Managing your supply chain is also critical, especially in the current environment. Review your suppliers and undertake a risk analysis regarding their ability to fulfil orders, as this will ultimately impact the services you provide to your customers. This is an excellent opportunity to source a wider variety of suppliers to offset any possible future disruptions.
Explore how technology can help to create efficiencies within your business. This may relate to using cloud-based accounting platforms to monitor your business in real-time and to invoice and reconcile accounts easily. It may also relate to using cost-efficient ways to promote your business, including social media marketing and advertising.
There are many other areas of your business where streamlined strategies will improve your success. By implementing these simple tips and techniques, you turn them into cost-reducing strategies to increase long-term profitability swiftly.
Realise Business advisors have extensive experience working with a wide variety of businesses to identify and action smart processes that boost efficiency, profitability and resilience. Book your free advisory session today.