Fast-track the Growth of your Business
Like any Business Owner or Managing Director your focus is likely to be on growth and how that is best achieved. If you are anything like me, growing a small business, you’ll be focusing on cost reduction to free up funds enabling you to reinvest into those area which will have a direct & positive impact on growth. Essentially how can I grow the top and bottom line consecutively?
How can Organisations Reduce Costs?
How can organisations reduce costs? And how do you decide where best to invest those savings. We all know the largest overhead of many organisations is the salary bill. But simply cutting staff doesn’t increase turnover, it just reduces overheads. Making quick cuts isn’t a viable strategy for growth. Before you start any sort of strategic cost reduction strategy you need to have your growth and business plans in place. Without this you may cut areas that are detrimental to your overall growth plans. However once you have your future plan in place, which of course is no mean feat, there are 3 areas to concentrate on:
Without knowing what activities directly impact growth, or don’t directly contribute to it, how will you know what to areas to focus on? Ensuring you have a forensic level of spend visibility will empower you to make the right decisions in relation to cost savings or activity investment. Sure, delegate budgets appropriately, but ensure you know where and how the money is being spent.
Namely those expenses associated with selling, administrative tasks and general activities. Of course time is money, so you will want to look at time and productivity as well as actual spend. Do you know how productive your employees are? Where are the areas that could be automated and so free up time for activities that directly contribute to growth create a competitive advantage.
Building a culture that supports growth
Without the employees of the company being on-board with your growth initiatives reducing overheads will always be a challenge. Ensuring all employees know the company’s growth strategy and buy into it will mean you have less of an uphill struggle in maintaining overhead budgets in the long term. Additionally it helps teams and individuals focus on activities that deliver strategic priorities. Fundamentally this helps employees manage change, especially that which may impacting directly on their routine.
Of course, non of these 3 points are easy to achieve, but putting effort and energy into the right areas will put you on the right path for efficiency and growth within your organisation.
Reinvest Efficiency Savings and Grow your Business
Successful efficiency exercises, aligned to strategic plans, must then be reinvested in the areas that will take the business forward and sustain growth. This will of course differ depending on the organisation but may be areas of innovation, productivity improvements, customer service or customer satisfaction, new product lines or marketing.
Companies need to focus on their core goals; funds that are not working towards those goals should be shifted into activities that drive growth. Find ways that help performance and free up the money needed to grow, money that otherwise just wouldn’t be there.
If you are MD or Business Owner of a Training Company, Learning, HR or Sales Consultancy looking to drive growth and efficiency savings through systems and process improvement speak to me, or the sales team on 01242 254 254