How Small Firms Can Become More Efficient in 2013

Running your business in the most efficient way possible to cut costs has never been more important thanks to the current economic climate. This is especially crucial for small organisations that usually have tighter margins and less bargaining power than larger companies.
1. Move to the cloud
The advent of cloud computing is perhaps the most significant technological development affecting small businesses today. Running applications from and storing files on a virtual drive hosted on the web does away with the need for bulky, expensive servers and other IT equipment, as well as things like filing cabinets if you combine the cloud with a shift towards paperless working.
One of the great things about cloud computing is that it has become an extremely competitive marketplace, with providers jostling with each other to provide the most cost-effective service to businesses. So, you can really take advantage of this by shopping around to find the best-priced cloud solution to make your cash go as far as possible.
2. Automate processes
This is one aspect of efficiency that some business owners shy away from, due to a perceived high cost and the possibility that it may result in job losses. However, automating key processes such as manufacturing and labelling can really go a long way towards saving you both time and money, and can mean you get the initial outlay back many times over.
You needn’t think this has to be a large undertaking, either. Start by making simple changes such as moving from bottling toiletries or drinks by hand to using an electronic bottle-filling machine, and see how much of a difference this makes. If you’re happy with the results, you can go further and automate some of your business’s other operations.
3. Invest in staff training
Again, this might seem counterintuitive; how can you save money by spending cash on training staff? However, as with automating your manufacturing, the initial cost can seem like small fry compared with the benefits your company will enjoy by retaining highly-skilled workers who are happy in their jobs and feel like a valued part of the organisation, rather than having to fork out large sums to hire new staff when dissatisfied employees who think they’re not seeing enough professional development leave.
Don’t forget that the training can be as targeted as you’d like it to be to increase the advantages further. A session offering advice on time management, for example, can boost efficiency in several ways if attendees take something away from it and put what they’ve learned into practice.
4. Go green
Becoming more efficient in how you use energy will have benefits for both your business and the environment. From simple steps like recycling more and using energy-saving bulbs in your office to more complex tasks such as replacing windows and installing motion-sensitive lighting, there are many things small firms can do to save money in this respect.
To make this point clearer, research suggests that the average energy bill for businesses comes to more than ￡2,600 a year. With prices continuing to rise by as much as 15 per cent on an annual basis, it’s in your best interests to slash this cost wherever you can to avoid being among the seven per cent of small firms that are at risk of collapsing if gas and electricity become even more expensive.