How much are inefficiencies costing you?
Productivity is either one of those lofty goals or a keenly tracked focus in small to medium businesses. It can be the make or break of a lean start up, or a growing bloat in more established businesses, yet the true cost of inefficiency is rarely measured.
Because we don’t get invoiced for these inefficiencies as such, it’s easy for the bloat to eat away at your profits.
If your team members perform the same task more than 3 times per week, then it’s time to look at systemising these tasks.
In previous SMEs I have worked in, the sheer amount of manual, repetitive tasks having to be performed was enormous. The seemingly simple tasks of managing contractors’ timesheets, invoicing and managing remaining time on jobs would take me the better part of 2 weeks per month (!$#%^$E) by not employing the right tools for the business we were in.
Keeping on top of these three tasks alone was costing the business in excess of $40,000 per annum in time. And it was prone to error given the number of times having to handle the same data.
Plus, being so inefficient, it made us look disorganised.
A simple technical solution, once implemented, cost the business $1,200 per year in software fees and $4,800 per year in time to run the processes.
Additionally, it created more time in my day to deliver additional (revenue generating) services to clients;
And saved us hiring another (non-revenue generating) employee for another 18 months.
Either way you look at it, that’s an insane Return on Investment.
Many small to medium businesses still employ similar processes in parts of their organisations. Can you think of a handful of manual, repetitive tasks that are performed in your business each week?
By doing so, you are not only saving time and money, you are also reducing the risk of data input errors and improving the overall customer experience, ensuring all leads and customers are given the same level of service in the relevant areas of your business.
To help you understand the true cost of inefficiencies, identify 3 repetitive tasks in your business that are performed 3 times or more per week and run them through our productivity test.
These tasks could include following up with leads in your sales process, creating and sending proposals, new customer welcome / onboarding processes, recruitment of new staff, customer lifetime value reporting and many more.
Be bold. Make a start. Take the test and put a $ figure to your inefficiencies.