Introduction

Small business owners are busy people. They have to juggle multiple responsibilities, from managing employees and marketing to sales and customer service. One of the most significant challenges they face is finding the time to complete all these tasks efficiently. That’s why it’s essential for small business owners to focus on increasing efficiency in their business.

What is efficiency, and why does it matter?

Efficiency is about doing more with less. It’s about using resources in the best possible way to achieve your business objectives. In other words, it’s about achieving the same or better results with fewer resources. Efficiency is critical for small business owners for several reasons:

1. Cost savings: When you increase efficiency, you can reduce costs. This is because you can achieve the same output with fewer resources, whether it’s time, money, or labor. For example, if you can complete a task in two hours instead of four, you can save money on labor costs.

2. Improved productivity: Efficiency also leads to improved productivity. When you’re able to do more with less, you can accomplish more in less time. This allows you to take on more work or focus on other areas of your business.

3. Better customer experience: An efficient business can provide a better customer experience. When you’re able to deliver products or services quickly and accurately, your customers are more satisfied. This can lead to increased loyalty and repeat business.

4. Competitive advantage: Efficiency can also give you a competitive advantage. When you’re able to deliver products or services faster and more efficiently than your competitors, you can attract and retain customers.

Is my use of technology increasing efficiency?

Technology can be a game-changer for small businesses. There are many tools and software available that can automate tasks, streamline processes, and improve communication. For example, project management tools can help you manage tasks and deadlines, while customer relationship management (CRM) software can help you manage customer interactions.

However, when these tools and software are implemented without a strategic plan, they can start to work against the objectives that they were meant to solve. Software platforms are only interested in selling their particular products and many rarely take the time to understand if their solution is right for your business and what you would actually need to do in order to implement it.

Overlapping Tools and the Mirage of Tech Efficiency

Let’s see if this sounds familiar:

• Your small business uses a CRM platform that manages customer information and historical sales data for the sales team, who has been using this tool for many years

• You’re approached by a sales rep from a competing software that claims they can increase Accounts Receivable (AR) efficiency and get customers paying faster if you subscribe to their CRM that includes a payment automation feature

• You agree to implement the new tool, and pay for the year up front to get that new customer discount

• The sales reps complete the onboarding process, but the top performing one hates the new platform and will only agree to continue using the previous tool

• Not wanting to lose your best salesperson, you agree to keep the old CRM

Now you have two overlapping CRMs feeding the same information to internal stakeholders, creating a layer of confusion over the sales. Not only that, it has created resentment among the sales reps that don’t appreciate what they feel is favouritism to the top performer.

Conclusion

In the example above, a solution that should have increased overall business efficiency, has only decreased it by adding a level of confusion to a workflow that was previously adequate. At this point, many business owners have invested too much time in the overlapping solution to acknowledge that more work is required to ensure the original objective of increasing efficiency is achieved, and they don’t have any more time to spare.

This is where a digital transformation consultant like those at JAM Consulting Business Solutions can step in and provide assistance. The consultant can work through the process of removing the overlap and increase efficiency while you focus on what is important to your business. Critically, since the consultant is not trying to sell you a particular tool, time will be spent to truly understand the situation and recommend the best solution for your business.