Are You Running Your Business Efficiently?

Have you asked yourself this question recently? Or – do you have a regular review in place for your business to ensure you keep your business efficient?

What does running a business efficiently mean?

It means that you have no fat in your Profit and Loss. That is – all your business expenses are kept to a minimum.

It also means that all of your systems and processes are such that the minimum amount of people hours are required to run your business: and importantly, your time spent on business administration is minimal so that you can maximise your time spent on the strategy for your business. Or – as many experts like to say – you maximise the time you spend “on” your business – and not “in” your business.

How often should you review your business’ “efficiency”?

A review of your business’ overall cost commitments should be done at least annually.

And - regular monitoring of your costs should also be done at least each month as part of the monthly review of your business’s performance.

Systems and process perhaps can be reviewed less frequently. However, their review should be part of your 5 year business plan – to ensure they are addressed and considered.

With the advances in technology we are seeing – you should always be asking the question – how can I use the advances to improve my business’ bottom line and/or gross margins?

The advances in technology we are seeing can be both exciting and alarming: it is important to always be across them to stay both efficient – and competitive.

JMLC Accountants & Business Advisors

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