Business optimisation refers to the process of measuring efficiency, productivity and the performance of your business while finding methods in improving these measures. In this piece, we look at some key pointers to consider when you’re ready to optimise for expansion, growth or sustainability.

Upskilling. 

As a business owner, ask yourself the question; “Is my current skill set relevant enough to take my business into the future?”. Business owners risk becoming complacent and often rely on their experience and vested skillsets. Firstly, you need to understand what the main future trends in your industry are, and following that, you have to determine if you and your business collective will be relevant in the years to come. Of course, this may require some reinvention of yourself and your business to ensure that you are future-proof - but personal and business innovation can be exciting. When business slows down, much like right now due to the current pandemic, entrepreneurs have the opportunity to prepare themselves for the next upswing in activity as well as new prospects that have entered into the market or recently adjusted their needs.

Business premises. 

Are your business premises located close enough to your target market? Do you rent or own your headquarters? What is the best option for your business? Are your premises too large or too small for your operations? Should you consider subletting a portion of your premises to another company, if your rental agreement allows for this? If we are digital, do we need business premises at all? 

Streamlining business overheads can be daunting, but once you adjust your rein and adjust your way of thinking it can often sprout an untapped enthusiasm to support business longevity.  

Stock.

If you’re running a product-orientated business, you need to ensure that you make a concerted effort in ensuring that your stock levels are optimal as this aligns with your cash flow. Any ageing stock needs to be moved, so consider holding a sale of items. If any stock is purchased on credit, ensure that your payments are the best in terms of longer and cheaper terms.

Staff.

If business is considerably tight, as it is for some at this time, we recommend allowing your staff to work shorter shifts or decrease their hours. Another great option is to replace any staff members who resign with contract workers, which will give your business more staff capacity flexibility. Furthermore, it’s wise to use any “downtime” or a bump in the economy as an opportunity to upskill your staff members to either repurpose their focus or enable them to achieve more.

Optimise potential business opportunities.

Many business owners continually pursue new business opportunities with a small chance of actually gleaning new business. We recommend listing all your current opportunities in a ranking of the likelihood of securing new business as this can prove to be a productive plan of action in focusing your limited resources more effectively.

Optimise your upselling skills to existing clients. 

Chasing new clients is a slog that most business owners see as the biggest opportunity, however they often forget that they already have a client base to tap into. The existing client base is your biggest asset, and if they trust your services and support then they are the hottest leads that you have to upsell more services or bigger packages. So while it may seem laborious at first, we recommend accurately capturing client information at the start and continue to build on their information, so that when push comes to shove your ability to grow is already at your fingertips.

Revisit your capital structure. 

You might find the opportunity to re-capitalise your business to improve your cash flow and business growth. We recommend leveraging your assets and debtors books could possibly fund your next significant transaction or business expansion.

Speak to your network of advisors. 

Often referred to as your Mastermind Group, this includes your accountant, financial planner, bank, property consultant, business coach and other, fellow entrepreneurs. Ensure that you make proper use of their collective expertise to aid in solving your most challenging business challengers or nailing a considerable opportunity which you might be struggling with. Lastly, a sense of mutual respect and trust is of crucial importance, and often your network should be willing to repay any favours.

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