Friday, July 30, 2021

How your SME can cut out inefficiency and drive profits in 2021

Profit margins are important to any business, but particularly to new SMEs. You should be doing all you can to reduce any inefficiencies that can cut into your business’s profitability. There are many ways that you can improve your company’s efficiency, ranging from cutting costs on your office space to helping employees achieve their best in their roles.

It is essential to understand the different expenditures your business faces. This is a critical way to help you know how to best save money and cut back on inefficiency. Read on for some of the best ways to help your business flourish in 2021.

Reduce Your Office Energy Bills

This is an excellent way to both save money and do your part in reducing carbon emissions. There are many ways to improve your office’s energy efficiency, and while you may need to spend a little initially, you will soon see savings over time. You could consider updating the windows to ensure that you have the best double-glazed insulating windows and insulation in the walls and ceilings to keep heat inside over the colder months.

Go Paperless

The amount of money offices spend on paper can be significant. Filling out paper forms can also be more time consuming and prone to human error than completing forms digitally. If your business still relies heavily on paper, it is worth looking into ways to reduce or eliminate paper use. For instance, you could email receipts and invoices rather than sending paper copies and save on both postage and paper costs.

It is worth noting that making the shift from paper to digital processes may come with a significant adjustment period. You should ensure that you give staff proper training in any new methods and implement changes gradually to ensure the smoothest transition.

Downsize Your Office

Thanks to the coronavirus pandemic, many businesses are realising that their current offices are no longer fit for their business needs and are considering their downsizing options. More people than ever before are working remotely, and this trend seems set to continue beyond the end of the pandemic.

If you rented or bought your office before the pandemic with space for a larger workforce, it may help to consider your options for downsizing. The smaller the office, the lower the rent or price tag attached. It is important to consider your business’s future needs before downsizing, but if you have found that remote working has worked well for your business, this could be an ideal solution.

You should also keep in mind that your employees will still need to get to your office easily if you plan to combine remote and office work. Ideally, you should try to move within the same area or somewhere with strong transport links.

Consider Implementing Automation

Automation is an excellent way to improve efficiency in the workplace. There are many processes that have traditionally been performed manually by employees that could be done in a fraction of the time with automation. It is worth researching how automation can benefit your business practices. For instance, you could automate administrative tasks like sending out invoices or payment reminders or using automated machines in warehouses.

Use Performance Management Software

Monitoring the performance of your employees is crucial to ensuring that your business remains profitable. It can also help you get the most out of your talented employees and help them reach their potential. Performance management software allows you and your employees to keep track of what they’re spending their time on, how they can improve and where their strengths and weaknesses lie. Once you have identified all of this information, it will be significantly easier to help your employees grow in their roles.

You should ensure you choose the best possible software to help you and your employees get the most out of the experience. Check out this excellent platform from StaffCircle for an idea of the quality and range of services you should be looking for, particularly if you have a large number of people working remotely.

Buy Second Hand

When kitting out an office, many business owners opt to get brand new, top of the range electronics and furnishings. While this can be a great way to ensure you get quality office equipment, it is often not entirely necessary. There are plenty of specialist stores that offer high-quality second-hand office equipment that will help cut costs without compromising on quality.

Outsource Specialist Work

It may not be necessary for your business to have an in-house employee or team for each element of work required. For instance, outsourcing IT services and marketing can help to reduce the cost of hiring a full-time employee without compromising on the quality of work you receive.

It is worth looking into local agencies that can carry out different works for your business. Ensure that they have good experience levels and excellent reviews and testimonials before hiring any agency or contractor.

Invest In Your Employees

The employees you have in-house are the future of your company. If you want to hire the best, you will need to show candidates that you care about their professional development and happiness in your business. One way to do this is by offering an attractive salary and benefits. It is also vital to show candidates that there is a clear progression path for them in your company.

Hiring the most talented candidates can be the best way to increase efficiency. While this can mean spending more on payroll and for benefits, the impact on your business will be well worth the cost. You should also consider offering training to employees so that you can shape them into the future leaders of your business.

Discuss Cost-Saving Measures With Your Accountant

Every business needs an accountant to help them monitor their business expenditures. Accountants can do more than simply taking care of payroll, VAT and helping you stay on the right side of HMRC. They can also highlight any areas for improvement that they notice while handling your company’s finances and give you helpful advice on any changes you are considering.

It is worth discussing your ideas for improving efficiency with your accountant to get their opinion on the viability and potential usefulness of the proposal. You should do this before you spend any money as part of your due diligence.

Make Smart Use Of Social Media

Social media can be a powerful tool for businesses in 2021. It allows you to reach an enormous audience of potential customers and help get the word out about your business. You can start by having social media profiles on all the major platforms: Facebook, Twitter, Instagram and YouTube.

You should ensure you have a decent amount of high-quality content to release on your platforms and be aware that managing multiple social media accounts can be a time-consuming task. You could consider hiring an agency to produce content for your social media accounts to help combat this.

Final Thoughts

As with many things in business, there is a lot of work that goes into increasing efficiency in the workplace. It is crucial to ensure that you regularly investigate the different ways you can cut costs and increase productivity. Keeping ahead of other businesses and constantly working to become as streamlined as possible are the keys to success in 2021.

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