How To Improve Resource Efficiency In Your Small Business

Saturday, September 19, 2020, 6:00 AM | Leave Comment

If you run a small business, you need to be more diligent than ever. You are facing growing global competition in all sectors.

Any other company in your industry can reach the same customers you target. Therefore, any methods to reduce costs and improve profits need to be implemented to continue your company’s growth.

Positively managing resource efficiency is one of the best things you can do for your small business. However, it can seem a little overwhelming at first.

In this article, we will go over several effective ways to improve resource efficiency so that your business runs more smoothly and profitably.

Let’s get started:

How To Improve Resource Efficiency In Your Small Business

  • Go Paperless

    It’s simply not necessary to use that much paper these days. Virtually anything that you used to need paper for can now be paperless instead. For instance:

    • Faxes – There are still some documents that people prefer to send over fax. However, you can use software to receive them digitally and save a copy in the cloud.

    • Legal Documents – Legal documents might even be safer if you store them using an encrypted cloud storage service. That way, you have a backup at all times and don’t have to worry about losing the physical copy.

    • Customer Agreements – Having customer agreements online or in the cloud enables you to provide everyone with a copy. It also saves on paper costs.

    • Physical Financial Records – When you get into the habit of entering financial information into cloud software, you can do away with paper. Doing calculations, making spreadsheets, and more, also becomes easier.

    • Customer Relationship Management – Every small business needs to keep its customer-related information organized. As they progress through the buying journey, update notes and information about them in a digital system instead of relying on paper.

    • Company Policies – Have a centralized place so that your employees can access your company policies and memos.

    • As you can see above, there are numerous ways to save on paper and go digital. Brainstorm ways in which your company is wasting money right now by not going paperless, and make the switch.

  • Replace Equipment with High Overhead Costs

    If you have a small business, you likely have some ongoing expenses. If you’re not careful, these can add up. Typically, equipment tends to bring about such recurring overhead costs. Going paperless is, of course, one way to mitigate this effect.

    However, there are other items that could bring a substantial bill to your door every month. This includes equipment that is consuming a lot of energy or fuel. Consider switching to more energy-efficient models. While the initial cost might be higher, you will save money in the long run.

  • Implement Remote Work Options

    The world is beginning to embrace remote work. This is due to the rise of technology that makes it easier and more cost effective than ever before. Staying in touch with your employees no longer presents a difficulty.

    By going remote, you can save money on office space and overheads. This drastically improves your resource efficiency. Additionally, your employees don’t need to fight long commutes, meaning that they can spend more time focusing on their work assignments.

  • Reevaluate Business Processes

    You probably have at least a handful of business processes that could use improving. That doesn’t mean you run a bad business: it just means you’re human.

    To really get the most out of your resources like time, money, and personnel, you have to dive into your processes to see what needs improvement and what is just fine as it is.

  • Assess Your Supply Chain

    At every part of your supply chain, you are either gaining efficiency or losing it. This starts with your initial manufacturers and goes all the way to the delivery service you use.

    Make sure that you aren’t losing money or time anywhere in the chain; otherwise, it’s time to negotiate or find some new suppliers.

  • Keep Tabs on Your Assets and Inventory

    One of the most important aspects of resource efficiency is keeping a close eye on your assets and inventory. Far too many businesses overlook this, leading to overstocking or waste. Imagine if you had a product sitting on the shelves without being purchased and costing you more money.

    Accurate asset management is a strategy that reduces waste, as well as the maintenance costs for assets that need to be reduced, replaced, or disposed of. It also helps boost efficiency because you can leverage your time, people, and other assets better.

  • Take Stock of Intangible Assets

    There are more assets in your company than you think. It doesn’t just come down to physical assets. Be sure to take into account your skills, experience, certifications, and even customer lists. These are all assets that need to be accounted for and leveraged.

Wrap Up

With the global marketplace becoming more competitive than ever, you need surefire ways to get an edge. Otherwise, you might find that your market share is slipping while your competitors continue to evolve. Properly managing your resources is the first step in improving your overall business outlook.

There are various aspects to consider when improving resource efficiency in your small business. While you won’t see all the results overnight, you will begin to improve your profits and reduce expenses over time.

That way, you will be in an even better position to take your company to the next level.

Author BIO

Joe Peters is a Baltimore-based freelance writer and an ultimate techie. When he is not working his magic as a marketing consultant, this incurable tech junkie devours the news on the latest gadgets and binge-watches his favorite TV shows. Follow him on @bmorepeters

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