How to Run a Mid-Sized Business More Efficiently

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Running a mid-sized business efficiently is difficult because the easy gains of small business expansion are unrepeatable, and finding areas to improve upon is not always apparent.

In fact, the larger the company becomes, the harder it is to keep track of your employees, the efficiency of company processes, and how happy your customer base is. This is where many executives become unstuck because they are not close enough to the action to be able to make the necessary changes for greater efficiency.

However, this is not to say that the task of improving company efficiency is impossible – far from it. In fact, the secret to great business management (like all leadership) lies in basic principles that can be referred back to repeatedly.

Applying these principles can vary, but the basics of business leadership are largely the same regardless of the circumstances.

Here is how to run a mid-sized business more efficiently:

Invoice factoring can help big companies keep their cash flow circulating healthily

Maintaining a healthy flow of income is key to the success of any commercial enterprise. It is at the very core of your company, and you need to maintain it at all costs.

Of course, the larger the enterprise becomes, the larger the number of sales or orders you take on, many of which won’t be paid upfront. For instance, if you are a parts supplier, then products will cost you a great deal of money to produce, store, and deliver. Your company will be out of pocket until your client pays up, but this could be months after you originally submit an invoice.

As a result, the company could be left vulnerable to cash flow stagnation, or at the very least, suffer from unpredictable financial health. To help solve this, you could use invoice factoring so that you can receive payment upfront.

Basically, you hand over your invoice to a third party who will pay you what you’re owed straight away and then wait to collect the original payment themselves, whenever that may be.

Keep the channels of communication open

One of the best ways to improve the efficiency of a mid-sized business is to open the channels of communication between executives and other staff members and customers. Many business leaders’ common fault is losing touch with the ‘shop floor’, making decisions that are not in the best interest of their employees or customers.

What a spreadsheet tells you is not always representative of reality. It is easy to fall into the trap of following data rather than the human beings working in your organization, especially when cost-cutting is involved. To combat this, hold regular meetings with staff members at all levels of your company. Simply talking to your employees will give you invaluable information about the inner workings of the business and allow you to make informed decisions at an executive level.

Similarly, reach out to your customers and ask them about their experience. If you build a strong enough bridge of trust between you and your customers, you will likely discover new ways to improve your products and deliver a better service.

Improve staff morale with flexible working options

When a channel of communication is opened between you and your employees, you may discover new suggestions about improving staff morale. An increasingly popular option (especially in light of the pandemic), is flexible working options.

This allows staff members to choose whether they want to work from home or the office. While it sounds like a recipe for disaster, it can actually improve productivity levels. Staff members feel more independent and trusted, while executives don’t have to pay for such a large office.

Want to Achieve Excellence in Process Improvement?

Gain the knowledge and develop the expertise to become an expert in Process Improvement. Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.

Process Improvement involves analyzing and improving existing business processes in the pursuit of optimized performance. The goals are typically to continuously reduce costs, minimize errors, eliminate waste, improve productivity, and streamline activities.

As we continue to deal with COVID-19 and its economic aftermath, most organizations will prioritize Business Process Improvement initiatives. This is true for a few reasons. First, Process Improvement is one of the most common and effective ways of reducing costs. As the global economy slows down, Cost Management will jump to the forefront of most corporate agendas.

Secondly, a downturn typically unveils ineffective and broken business processes. Organizations that once seemed agile and focused during periods of growth may become sluggish and inefficient when demand drops off.

Lastly, COVID-19 has expedited Digital Transformation for most organizations. One of the quickest and most impactful forms of Digital Transformation is Robotic Process Automation (RPA). Thus, we have included numerous RPA frameworks within this Stream.

Learn about our Process Improvement Best Practice Frameworks here.