How effective are your current business processes? Day-to-day operations can make or break a small business’s ability to reach success. The mid-year checkpoints below help business owners identify benchmarks to determine if change is required to meet operational objectives.
Performance Indicators
The measurement process should begin with a review of financial and operational data. An audit of the six-month profit and loss report and balance sheet will help identify any accounting errors, as well as provide a profitability snapshot. Accordingly, a year-to-year comparison of financials should be run to pinpoint determinants for revenue growth or decline. These quantitative progress markers provide a definitive diagnosis of the financial viability of business operations.
Operational Strategies
It is important to continually tweak operational strategies to prevent small problems from grossly impacting the bottom line. Correspondingly, the small business owner should outline which steps the company has achieved so far in keeping with its operational plan. Then, create a roadmap with targeted objectives to accomplish remaining year-end goals. Throughout this process, complete strategy overhaul may be necessary to refocus on the operational plan. It is also important to lessen inter-departmental obstacles that interrupt performance harmony.
Dream Team Dynamics
Happy and healthy staff are often more productive and enthusiastic about implementing the company’s vision. Check that employees have the necessary training, tools, and incentives to reach their fullest potential. Also consider whether responsibilities require reassignment among personnel. Following up on these team variables preserves a strong work synergy which, ultimately, actualizes operational goals. If you don’t have any employees yet, consider automating or outsourcing some business activities to sharpen management efficiency.
Resource Efficiency
Reducing wasteful or unnecessary business processes is integral to stay on track with operational goals. Analyze budgeted versus actual expenses to locate any resources that may have fallen through the cracks. Additionally, protect your brand by taking stock of inventory, eliminating underperforming products, and buying in bulk or from different vendors. Don’t forget to evaluate whether time is being properly utilized; this includes the efficiency of current software for back-end operations. If technology is outdated, inadequate, or overpriced, it’s time for an update.
Ready, Set, Refocus
You have likely isolated more than a few areas that need improvement. Monitor implementation of these operational changes by breaking them into small steps before introduction. Finally, get your team engaged and on board with the company’s reconfigured strategies to successfully tackle operational goals for the remaining year.
Contributor: Alaina O and the Urban Accounting Services Team.
