Running Your Business Efficiently For Profitability

Restored from the Empower Network archive (2011–2017), lightly edited to meet our current advertising standards. Views are the original author’s.

Entrepreneurial profitability is the expression of the value of what the entrepreneur contributes to production. Joseph A. Schumpeter

We all have the same 24 hours in the day to get as much or as little done as we see fit. The difference between profitability and non-profitability is what we do in those hours. Whether you are working for someone else or for yourself should not effect the amount or quality of work you do, when it comes down to it I think we would all like to think we have done our best in any situation, what really gets the moula flowing is your ability to concentrate on the activities that you are most proficient at and to outsource the ones you are not so good at.

Sometimes this is easier said than done. If you are thinking about starting a business then the exercise I am about to suggest should be done before you start but if you are already in business then chances are you are reading this article because you are looking for a way to optimise what you already have so I encourage you to take the time to do this exercise NOW.

Profitability Efficiency Check List

• Make a list of all aspects of your business that must be done. i.e. accounting, staff management, taxation, insurance, stock control, marketing, customer service, emailing etc…..make sure you have everything.

• Make a list of the activities you are strongest in and a list of the activities you are weakest in.

• For the activities that are already assigned to someone else, make sure that the activity they are doing is one they are good at and that they enjoy, if it is not then put them where their talents will be put to better use and find someone that can do that activity well. It is a well documented fact that people perform better when they are doing something they enjoy and when they enjoy it they become better at it. For the activities you are not strong in, outsource them to someone who is.

Profitability in business is like a good clock

You now have the shell of your clock with the workings in the middle, you are the oil that keeps things moving well. When you concentrate on the things you are best at and trust that the people you have in place to do the activities you are not overly confident in are doing the same then all you have to do is check periodically that everyone is maintaining or improving their standard and profitability is guaranteed.

Beware though, a good clock is only as good as the parts it is made up of so being diligent in keeping an eye on all the parts and making sure they are always in good working order is essential for continued profitability. You do not have to be an expert in your field but you do have to know a fair bit and make sure you have people on the ready to fill in the gaps of what you do not know. Henry Ford was ridiculed for his lack of knowledge in his business, his answer was to have people surrounding him that could tell him what he needed to know at the push of a button, his profitability is obvious.

One last note: The business people who have the highest profitability always keep their most valuable asset in prime condition….themselves. Eat well, have good quality sleep, exercise regularly and keep a healthy weight, drink plenty of water, surround yourself with people who support and encourage you and who you can learn from, always be widening your knowledge on your chosen profession, take the time to relax and spend time with those you love and never put off till tomorrow what you can get done today!