Post by Trade facilitator on Mar 9, 2021 13:00:42 GMT 1
3 Critical Steps You Must Take To Make Your Business More Efficient and More Profitable
Implementing these mindsets will release you from one of the most disturbing inefficiencies in business.
By managing your business more effectively and prioritizing your business inputs, you will surely get greater outputs and greater revenue.
The whole world knows that the Covid-19 pandemic has left most businesses with financial bruises, a challenge that has surpassed what we have ever witnessed in living memory.
Businesses are daily experiencing so much external pressures, but the worst of it all is that many companies and organizations are still handicapping themselves by not building-in even the most basic systems available to them. These are basically internal efficiencies.
Let us look at the three principles for optimizing efficiency, to release your business from self-imposed constraints, in 2021.
You are not a manager, you are a leader:
Leadership and Management are not the same; the manager accepts the status quo, while the leader challenges it, according to Warren Bennis, Professor of Business Administration and an Organizational Consultant.
If you are the Chief Executive Officer of your business, you probably have managers working with you, do not expect them to confront problems, rather they will try to solve problems based on laid down rules and regulations of the company.
If any problem goes beyond that, the presence of the leader will be required. If you see yourself as a manager, you are strategically not better than simply taking what you have and preserving it. Can you see the connection? You had N2m at the beginning of the year and as a manager you will be trying to preserve the N2m, but the leader will confront obstacles preventing him from increasing the asset.
Entrepreneurship rests squarely on the foundation of leadership. The leader identifies the company’s strengths and weaknesses, implementing positive changes while taking others on the journey to success.
Develop an efficiency idea, try it, review and then roll it out for company-wide effectiveness. True leadership has a compounding effect on efficiency. If today you start looking at yourself as a leader, you will improve yourself through efficiency.
Also, if you teach your team that they are leaders too, then they will start identifying efficiencies upon efficiencies at every level in
your business.
Get Lean:
The greatest question you should be asking yourself this year 2021 is, what are the things you are doing that people won’t pay for, and why are you still doing them?
The Toyota production system gave rise to ‘Lean’ working, and when the founder was asked about lean thinking, this is what he said “All we are doing is looking at the timeline, from the moment the customer gives us an order to the point when we collect the cash. And we are reducing the timeline by reducing the non-value adding wastes.”
Invest in real business efficiency review:
To succeed in business, especially during these trying times, you must review your activities decisively. Look, you must make a conscious effort to verify all you had been doing for a week or month in order to know if you have been efficient or not.
Look at the Kevin Zhang, the eCommerce entrepreneur behind HEMPX clothing brand and the Branded Niche eCommerce (‘BNE’) approach. He has a unique way to ensure business efficiency is at the heart of his business.
Every month, he spends one-week logging everything that he did that week, hour by hour, and then closely examines any inefficiency.
He looks at his schedule and determines which activities are high value-add and which can be automated hiring new talent.
The University of Oxford identifies scalable infrastructure as one of the three key requirements for a business to move to the next level, with strong leadership and appropriate marketing.
When a leader focuses on removing inefficiencies, it is like removing shackles from a business’s potential. This requires courageous leadership and the strong ability to identify what the client needs, and supply that to them in the most streamlined method.
Implementing these mindsets will release you from one of the most disturbing inefficiencies in business.
By managing your business more effectively and prioritizing your business inputs, you will surely get greater outputs and greater revenue.
The whole world knows that the Covid-19 pandemic has left most businesses with financial bruises, a challenge that has surpassed what we have ever witnessed in living memory.
Businesses are daily experiencing so much external pressures, but the worst of it all is that many companies and organizations are still handicapping themselves by not building-in even the most basic systems available to them. These are basically internal efficiencies.
Let us look at the three principles for optimizing efficiency, to release your business from self-imposed constraints, in 2021.
You are not a manager, you are a leader:
Leadership and Management are not the same; the manager accepts the status quo, while the leader challenges it, according to Warren Bennis, Professor of Business Administration and an Organizational Consultant.
If you are the Chief Executive Officer of your business, you probably have managers working with you, do not expect them to confront problems, rather they will try to solve problems based on laid down rules and regulations of the company.
If any problem goes beyond that, the presence of the leader will be required. If you see yourself as a manager, you are strategically not better than simply taking what you have and preserving it. Can you see the connection? You had N2m at the beginning of the year and as a manager you will be trying to preserve the N2m, but the leader will confront obstacles preventing him from increasing the asset.
Entrepreneurship rests squarely on the foundation of leadership. The leader identifies the company’s strengths and weaknesses, implementing positive changes while taking others on the journey to success.
Develop an efficiency idea, try it, review and then roll it out for company-wide effectiveness. True leadership has a compounding effect on efficiency. If today you start looking at yourself as a leader, you will improve yourself through efficiency.
Also, if you teach your team that they are leaders too, then they will start identifying efficiencies upon efficiencies at every level in
your business.
Get Lean:
The greatest question you should be asking yourself this year 2021 is, what are the things you are doing that people won’t pay for, and why are you still doing them?
The Toyota production system gave rise to ‘Lean’ working, and when the founder was asked about lean thinking, this is what he said “All we are doing is looking at the timeline, from the moment the customer gives us an order to the point when we collect the cash. And we are reducing the timeline by reducing the non-value adding wastes.”
Invest in real business efficiency review:
To succeed in business, especially during these trying times, you must review your activities decisively. Look, you must make a conscious effort to verify all you had been doing for a week or month in order to know if you have been efficient or not.
Look at the Kevin Zhang, the eCommerce entrepreneur behind HEMPX clothing brand and the Branded Niche eCommerce (‘BNE’) approach. He has a unique way to ensure business efficiency is at the heart of his business.
Every month, he spends one-week logging everything that he did that week, hour by hour, and then closely examines any inefficiency.
He looks at his schedule and determines which activities are high value-add and which can be automated hiring new talent.
The University of Oxford identifies scalable infrastructure as one of the three key requirements for a business to move to the next level, with strong leadership and appropriate marketing.
When a leader focuses on removing inefficiencies, it is like removing shackles from a business’s potential. This requires courageous leadership and the strong ability to identify what the client needs, and supply that to them in the most streamlined method.
