Spring is here, and with economic indicators clearly showing the economy has slowed down, it’s a great time to roll up your sleeves and carry out a business spring clean.
With productivity being one of the biggest drags on the economy, cleaning out the things that are slowing your business down will improve efficiency, performance and get you ready for what lies ahead.
To help kick-start your spring clean, in the video below I share my top 5 spring cleaning tips.
video summary:
1. waste audit
When we’re looking to clear the clutter, improve efficiency and remove the roadblocks to success, we default to the ‘7 wastes’ from Toyota’s lean manufacturing model’. Despite this model being focused on a manufacturing environment, it’s just as relevant for any other industry and business.
The 7 wastes include:
- overproduction
- waiting
- transport
- inappropriate processing
- unnecessary inventory
- unnecessary motions
- defects
Remember, something is only a waste if the cost of doing it exceeds the value it delivers. Encourage a culture that does not tolerate waste as a way to continuously improve your business. Learn more by downloading your copy of the 7 deadly wastes in a business ebook below.
2. ditch unprofitable clients
One area of waste I see business’ address with significant impact, is unprofitable clients. Review your client base, identify those that cause the biggest headaches and balance that with understanding profit contribution. Cut those that no longer make the grade or negotiate a better arrangement to make it worth their while.
One way I like to look at this process is using a tool I call, ‘raising the bar of average’. This is a great way to pinpoint the lower contributing clients. Head to our blog about ‘raising the bar’ here, where you’ll find a video I created a while ago explaining this concept in more detail.
3. review marketing activities
Often, I see businesses continuing to execute marketing activities that were set years ago and have not evolved with the business or are no longer on point with the current state of the market.
A great way to refresh and refocus marketing efforts is by doing a deep dive into what is working and what is not. Review your overall marketing strategy so your efforts are targeted specifically to the clients you want in todays market. It’s also important not to forget to evolve or refresh your brand as the market [and maybe even the target audience] for your business changes.
4. assess systems + processes
A classic tool to find the inefficiency within your processes, is a good old fashion ‘process map’. Grab a big whiteboard or a roll of butcher’s paper and simply map one process at a time. Involve the team so you don’t miss any critical steps, and then stand back and look… the bottlenecks will be obvious.
One of my favourite applications of process mapping is when reviewing the roles and responsibilities of a team. People change and so do roles, so what is your team doing that consumes time but no longer adds value.
5. catchup on your paperwork
I am forever hearing about tasks that business owners are putting off because they are too busy, the reality is that these tasks are often important, even if they are not urgent yet. From getting your tax returns done, to getting the right legal documents in place [whether it be your shareholders agreement, reviewing the terms of trade, or updating your employment contracts], they are all important things that if you get in place can save you a motza down the track.
we’re here to help
Give us a buzz on 1300 BDEPOT or get in touch via oneplace@businessdepot.com.au to get your spring clean under way and get your business ready for whatever lies ahead. And of course, if there is anything you need help with, please reach out!
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