Evaluating Efficiency for Next Level Expansion

Definition of Efficient-
1. well organized: performing tasks in an organized and capable way
2. able to function without waste: capable of achieving the desired result with the minimum use of resources, time, and effort

Starting and maintaining a business is definitely a challenging task- especially in today’s economy. If your business has survived for two years or more, you deserve to be congratulated for beating the odds.

So you’re ready to take it to the next level. Now what? You want to grow your business, but how are you going to handle the work load? No matter what business you’re in, you must always be prepared to:

Evaluate
Plan
Change

Evaluating your business requires an open mind. Clearly you have been doing some things right or your business wouldn’t have survived thus far. But is your business running as efficiently as possible?

If you’re hoping to grow and take on more business, you should do an efficiency evaluation well in advance. In fact, you should do that right from start. It should be part of your overall plan.

How do you make your business more efficient?
Take a look at how your employees are doing their work and get their input. They are your best inside resource. Ask them what problems they're having and get their ideas on how to fix them. They may not all be feasible, but you won't know if you don't ask.

Consider things such as new software and equipment. What you have may be working, but there may be better options that won't break your budget. Change has a way of finding us even when we're not looking for it, but you're better off being proactive versus reactive.

Pay attention to your management team. Make sure they understand the importance of managing resources for efficiency. They should be managing resources and leading people. Perhaps training is in order.

Utilize outside resources. Go to the experts. Henry Ford once said "I may not know how to run an automobile manufacturing plant, but I can hire people who do."

Here's an example of one successful service company did. They had developed what they considered "a fine tuned system" for producing their product. The clients purchased a “package” and it was delivered in a satisfactory and timely manner about 90% of the time.

Business was good and they began to expand in another state.

The expansion challenges
They needed capital and they needed to be able to take on the additional work load. The “processing phase” although previously successful from the clients perspective, wasn’t as efficient as it could be. The busier they got, the more employees they needed, but errors were increasing with each new hire.

More employee time was being shifted from customer service to fixing errors. The cost to produce it was devouring capital in both profits and customer service time.

Simply taking out a business loan at the time seemed risky until they got things under control. So they wisely took the time to do a complete evaluation.

What they found after evaluating the process
Why the increase in errors? The same data from new orders was being entered over and over on multiple forms as well as in their database. More business meant more entries. More new customers meant more telephone calls and more distractions, etc.

They were spending an exorbitant amount of time correcting errors and unfortunately, too many of them went unnoticed.

Their solution
The did a database modification that included built in forms that pulled the information from the client’s record. This included a database generated form to compare to the purchase order to double check for accuracy before documents were actually printed. The data was now entered only once.

The process involved consulting with the company that designed their original database, but the majority of the modification was handled in house.

The benefits
The company ulitimately saved hundred of thousands of dollars in labor and materials. They were able to reduce the average processing time from start to finish from two hours down to twenty minutes with 99% accuracy (the human component).

Referral sales increased dramatically. All of those happy customers were eager to tell their friends about the excellent service they received. This company has since gone on to establish multiple affilate offices.

Your business may or may not be in the service industry, but if you’re not currently doing so, you should take the time to evaluate your business efficiency on a regular basis. If your business is going to continue to survive and get to the next level, it is a must.

Find out more about the Business Achievement Center at our web site http://www.BusinessAchievementCenter.com. Our group of Strategic Partners are here to help businesses from start-up to expansion with our experience and expertise.

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Find out more about the Business Achievement Center at our web site http://www.BusinessAchievementCenter.com. Our group of Strategic Partners are here to help businesses from start-up to expansion with our experience and expertise.

Expanding Your Business With A Virtual Office

With the downturn in the economy we've certainly seen our share of businesses come and go across the U.S. As of late there has been a surge in new businesses opening up due to several factors.

Many people who have been unable to find work are going out on their own. Others figure "Why work for $12 an hour with my college degree to line someone else's pocket when I can start my own business and reep the benefits myself?"

People are realizing they have to work even smarter than ever and they have to take their financial future into their own hands. You may want to start and grow your business, but perhaps working out of your home won't get you where you want or need to be after the first six months. That's where a Virtual office or even an Executive Suite can help.

Many Fortune 500 companies have utilized Virtual Offices or Executive Suites when they started out and many continue to do so. You've no doubt heard the expression "OPM-use other people's money", well another expression in business is "OPS- use other people's staff" as a means to a competitive edge.

For example, how much would it cost to hire a full time receptionist who can answer questions to callers about your business or products? What if you utilized a Virtual Office even on a temporary basis that had a receptionist? You could potentially grow your business at a faster rate than trying to do it completely on your own. This is also a great tool for setting up operations in another state.

We're not suggesting that you don't hire any staff at some point. Once you get to the next phase of growth, by all means hire a full time receptionist or additional sales persons. It's simply another option available for you to help you work at growing your business.

Let's do a hypothetical comparison: Consider what it would cost to hire a full time receptionist, rent an office, pay for phone service, office equipment, phone, etc. Likely it would be over $2000 a month. For 10% of that cost you can have a Virtual Office with a receptionist, shared equipment, use of a conference room, mail forwarding and more. In this example that gives you an $1800 per month savings to use for marketing, advertising, equipment or what have you to really get your business up and running.

Here at Pinnacle Executive Suites you also have the benefit of utilizing services and expertise of the Business Achievement Center Strategic Partners who work with businesses from start-up to taking them public.

For more information about Virtual Office Services or our Executive Suites, call us at (775)884-6123.

Visit our web site at http://www.pinnacleexecutivesuites.com
Follow us on Twitter at @pinnaclesuites

Find out more about the Business Achievement Center at our web site http://www.BusinessAchievementCenter.com. Our group of Strategic Partners are here to help businesses from start-up to expansion with our experience and expertise.