Obsessed about business optimisation
Optimisation is an overused word that can mean a lot of things, so let me explain... can a business perform better than they currently are? Can they improve customer experience, their pricing strategy and financial outcomes to drive a better return? In most cases the answer is yes!
I'm that person at the cafe that worries about how the owners are affording to pay all their staff (overstaffed), that nail place that isn't charging enough to make ends meet, the tradie that doesn't make me pay when the service is done but a month later, the discounts in the department stores, the amount of stock on the shelves and the cashflow management of companies.
The COVID period has shown us that companies need to be:
More efficient
More commercial
Focus in on cashflow more
Get the pricing right
Focus in on customer experience
Small, medium and large businesses all have areas that they can improve. Research shows that business optimisation can improve the financial performance of your company by 21%+.
Business owners and leaders need to focus on business optimisation. What are the 4-5 things that will move the dial for your business?
Cashflow optimisation - maximising your working capital through tactical and strategic levers. Are you putting enough focus on this?
Pricing rationalisation - are you charging enough for your product and service and how you do compare to your competitors?
Strategic sourcing - are you strategic around how you manage your vendors to drive cost improvements and working capital outcomes?
Process optimisation - improve process efficiency and effectiveness by reducing complexity in the process.
Property management - lease costs cost approximately $10-12k per person per year. With the new ways of working and companies adapting to remote working, review your lease arrangements and assess whether your company really needs all that space. Can you sublet the space or hand it back to the landlord? Many companies are considering other options in relation to rental space. Are you?
One way to really reset the cost base of a business is the zero-based budget. Read our recent Whiteark article that explains why, how, and when you should use this technique. With a focus on what money is spent on and the return on investment including dollars and time to recover cost outlays, you can significantly change your cost base.
“If I had one hour to save the world, I would spend fifty-five minutes defining the problem and only five minutes finding the solution.”
Do you need to create a business optimisation plan? Let us help.
At Whiteark we have professionals that have practical, hands on experience on how to optimise business. Understanding every business is different and there is no one size fits all but we would be very happy to have a no obligation conversation around your business optimisation plan. Our co-founders have a combined experience of over 50 years’ working as Executives in organisations delivering outcomes for shareholders. Reach out for a no obligation conversation on how we can help you. Contact us on whiteark@whiteark.com.au
