29 Aug An SME’s guide to Reduce Operational Costs and Improve Efficiency
In a developing country like Philippines, micro enterprises are still faced with challenges on how to work on tight margins. Increasing revenue without overworking the employees and sacrificing the quality of the product is a difficult task especially with limited resources.
We have identified 4 key factors that can help reduce operational cost and improve efficiency:
Due to technology’s rapid advancement, it now allows SMEs to operate its business all over the internet without any need for office rental. Providing marketing and advertising solutions through social media result to significant reduction of operational cost. Also, having online communication tools can make decent savings by organizing meetings and presentations online to get rid of additional transportation expenses.
Automating repetitive tasks and low-skilled routine is one of the most efficient methods for keeping costs down. As the business grows, Customer Relationship Management (CRM) can give a business’s operational superiority in key areas such as sales reporting, accurate sales forecasting, and customer segmentation. This will reduce a lot of workload and cost of labor.
Mobile productivity can be critical to enterprises where employees have multiple roles and responsibilities. Having a collaboration tool within the organization is key to efficiency. Tools such as video conferencing and document sharing applications can help keep all employees on the same page. These will increase employee’s efficiency and production.
Outsourcing is not limited to larger companies. Due to technological innovations, SMEs are now facing a more challenging operating management leading to additional operational cost. Instead of renting or buying office space and equipment, outsourcing will let SMEs keep expenses low which makes it more attractive to investors and invest more capital to revenue-generating activities. It will also help the team focus on core business objectives.
Don’t settle for what you have, there are simple and affordable solutions that can quickly improve your day-to-day operations, saving your business time and money.