Time to boost up your business efficiency
Improving the operational efficiency of the business has become ever more important to support the recovery of businesses from the financial impact of the pandemic.
The pandemic has had an endemic impact on the way consumers buy products and services, the way these products and services are delivered, and related costs associated with operating the business.
This calls for a rethink on the business operations; in fact, we can say that one has to adapt the business processes to re-align with the new paradigm of customer acquisition, customer servicing, and customer retention considering cost optimizations. The choice also needs to be made on the areas to invest more time, effort, and money and areas to reduce focus to operate profitably in the new normal.
Some ideas to look for efficiency improvement can be considered to help support the financial growth of the business.
Business Planning – Consider the external factors that have changed in the market impacting your business. Understand the change in consumer preferences, buying patterns, and change in disposable incomes of your target segments and devise a plan to adapt your products and services to the needs of your target segment. It may be the case that a different product or service would be more in demand due to the financial impact of the pandemic on the economy of the country.
Marketing Spend/ Customer Acquisition Costs – While the marketing spend is an essential investment to grow sales it is important to relook and evaluate the customer acquisition costs or marketing spend for customer acquisition. It may well be the case that customer acquisition costs would increase during the post-pandemic era depending on your product/ service and target segment depending on the economic situation. In this situation, the business needs to be aware of the spend v/s return to be able to absorb these costs and effectively try to reduce any additional customer acquisition costs from other non-essential areas of business operations.
Streamline Business Process – The fulfillment and administration costs form a large chunk of expense for most if not all businesses. This aspect of the business is important to be streamlined in order to fulfill the customer needs effectively with the desired level of quality while maintaining costs as low as possible. Serious thought needs to be put into the process of re-engineering and identifying areas of inefficiency in the overall business process. Business leaders need to consider if processes can be simplified or re-aligned to reduce the time and effort required to fulfills the needs of the customers without compromising quality and service.
Workforce Planning – Workforce or Manpower is essential to any business. A careful and thorough workforce planning exercise could help the business by allocating the appropriate manpower to the focus areas of business while aligning manpower away from less profitable or non-essential areas of business operations. The current time also calls for a more flexible-workforce which can be assigned to various aspects of the business as per the needs of the situation. The need to upskill the workforce with additional skills should be considered to preserve the manpower and reduce any layoffs while improving utilization of the manpower effectively.
Alternative Financing – It may sound counter-intuitive to think that seeking additional financing can be easy during this period, however, businesses can seek alternative ways to manage cash flow requirements such as outsourcing staff payroll to a third-party vendor with a bankroll providing some relief towards cash flow requirements.
Banks and other government agencies have also launched additional initiatives to support businesses in certain segments which could be availed to finance the business operations with better terms.
With the above ideas to consider, our team of specialist consultants is able to assist you throughout your business efficiency improvement needs from advising the most appropriate approach to supporting in implementing any changes. The right approach will ensure your business improves operations efficiency, which in turn can support growth and financial recovery in a shorter period of time.