Running a business involves a near-constant process of optimization.
When inefficiencies are allowed to linger, they’ll cut into your margins, and in the long run, ensure that your business fails – especially if you’re competing against more proactive entities.
Let’s look at a few of the ways in which your business might be made a little more efficient. Taken in isolation, they might be effective – but do all of them at once, and the effect might be truly transformative.
Set the right expectations
When everyone in the business understands what’s expected of them, they’ll be more likely to fulfill those expectations. What’s more, when your staff does fall short of the standards you expect, you’ll be able to refer them to the expectations you’ve already outlined.
The less ambiguity around your expectations, the more likely they are to be adhered to. For this reason, it’s worth formulating a business plan and revising that business plan regularly to take account of new developments.
You’ll also need a formal means of getting the message out. If you can distill your most important requirements to just a few core pillars of the company culture, then they’re much likelier to be actually referred to in practice.
For example, if you want to focus on the customer to the exclusion of all other considerations, you might instill that as a company mantra!
Having a plan
We’ve already mentioned the business plan. This is an important document, but it needn’t be a formal one. It should clearly outline your objectives and how you intend to achieve them.
Your goals should be outlined alongside the timeframe in which you expect to achieve them.
This will help you to present your ideas to potential investors and other collaborators.
A business plan can be used as a yardstick by which you can judge the success or failure of your business in the future. This will help you avoid the tendency to retroactively change your expectations to fit your current achievements.
Supportive management
Arguably, your management staff is the most important people in your business, as they have the greatest influence on success or failure. So, while everyone in your business has a role to play, a competent manager will make a big, big difference.
For example, a construction site manager will coordinate much, or all, of the work that goes on in a specific location. When they make errors, it’ll have ripple effects that disrupt the entire project.
They’ll have the responsibility of identifying and correcting the mistakes made by others, and of reporting on progress to more senior decision-makers.
This means you should concentrate disproportionately on recruiting, training, and retaining your management staff.
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