Key To Improve Business Margin - 'Productivity & Efficiency'
Today, business is evolving, every minute and every second. Consumer demand and consumer perception plays vital role in demand which changes the style of business. To protect the consumer base, all business has been trying best to create advancement which is different, which is unique and which consumer likes. But business cannot succeed only with evolution of customer based preferences, they also need to work on improving and maintaining their margins. The one of the best way to improve the margin is improving productivity and efficiency in various aspect of business.
Improvement and utilization of rented space in better way is the ultimate requirement today. Gone are the days when space rent used to be very low and business used to offer a lavish surrounding. In past 15 years, the space rent has increased by more than 200 percent. Rent is a fixed expense and thus need to be dealt smartly. It is very important to understand what are the expected earnings per sq. ft. which a business need and accordingly, the business and business space need to be planned. A good civil architect with a good sense of facility planning plays a dynamic role in creating the space which can be smartly utilized without
Manpower productivity and utilization efficiency improvement has another great scope. What we need here is the clear processes and system to work. A proper understanding of work load calculation per hour per employee and then efficiency improvement training. Cross department or cross work knowledge training is another requirement to improve manpower productivity. Overall this type of productivity and efficiency improvement is practical and operational in nature, thus a better recruitment (right employee for right job) and continued training plays a sincere role.
New age machinery is another forward technique for business efficiency improvement. I think if machine can do the layman job where no skillmind common sense is required, then definitely machine is the better than men. But there is caution to mark that this efficiency improvement comes with large initial investment. This is what differentiates the business between large corporate and an individual business investments.
Than finally in 20th century, data interpretation, data analytics and data algorithm can help all the business to understand the lack of productivity and efficiency every second minute hour and so on. Thus these data is helping to analyse the issue instantly and act upon quickly with less reaction time. Thus postmortems can be avoided and margins can be safeguarded.
Spend enough time on strategy mapping for productivity and efficiency nurturing before start or investment of any business. Many investors or entrepreneurs take these aspects very lightly and makes a biggest business mistake.
It is quite imperative to operate all the way and approach with all techniques to improve margin by developing productivity and efficiency. Today, with so much of competition in market and with various government changing policies, there is no time to wait and grow the business ergonomically and in traditional style. Thus, it’s must that all the process and new age progressive method be deployed, operated and practised with start of business and not when business is showing stealth. These methods can be applied and deployed to any business since this is basic problem of all the business ranging from manufacturing to hospitality to service to software engineering.