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6 Tips to Improving Efficiency in Your Small Business

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efficiency in small business

One of the reasons why about 50% of all new small businesses fail within five years is inefficient business processes. Inability to identify and plug any waste of resources will bring down even the most well-executed business plans.

Small businesses are not exempt from implementing effective operations. These six tips will help you improve efficiency and make savings in your small enterprise.

1. Outsource What You Can’t Run Effectively

Your core employees are the backbone of your enterprise, and they offer invaluable service. But any auxiliary services that consume resources without significant returns should be handed over to independent contractors.

Trusted freelance service providers offer valuable expertise and can allow you to focus on your core activities. However, before engaging any independent contractor, it is crucial to lay out all the terms, including privacy concerns and retaining rights to your work.

2. Automate Regular Tasks

To save time, you need to make work easier and eliminate repetitive tasks. Today, automation accounts for many business processes and makes mundane tasks such as stock taking, accounting, and social media management less time-consuming.

Plenty of hours are lost in manual operations, and the likelihood of human error is high. Automation software and other mechanized technology can streamline processes and save you valuable time, money, and costly mistakes.

3. Fuel Costs

Many small businesses require vehicles for deliveries and other business errands.

Considering that fuel is often one of the highest recurring costs, it is imperative to ensure that wastage or pilferage does not occur. A great way of keeping tabs on consumption is to use fuel cards. As a business owner, you can monitor all purchases and even set limits as a way of curbing overspending.

Additional benefits of fuel cards include tax rebates, discounts, and automatic expense reporting.

4. Minimize Multitasking

In a world where workers maximize productivity constantly, many business owners buy into the myth that” the more simultaneous work you can do, the more productive you are.”

In a real-world setup, multitasking reduces productivity. Research proves that proficiency diminishes when executing more than one process at a time.

Instead of encouraging multitasking, you should enable your workforce to use time blocks to focus on individual tasks at a time.

You will notice a productivity improvement when you discourage focus shifts and interruptions.

5. Make Scheduling a Religion

Sometimes you may blame your employees for not sticking to a laid-out program, but you may also be guilty of altering processes at every whim.

Once you set your schedule, you need to follow it religiously. If you find yourself bending over backward for every business partner or customer, you won’t prioritize tasks, leading to a productivity disaster.

Write your schedule in stone and stick to it.

6. Listen To Your Employees

Business owners often sit in their corner offices and remain detached from day-to-day activities.

Take it upon yourself to get involved in business processes and collect first-hand information from the people on the ground. The employees offer valuable feedback that is useful in improving business processes.

Ask employees about the most frustrating part of their job and what they could change if they were capable. The answers you receive will go a long way in streamlining activities and improving efficiency. Ultimately, this will translate to an improved bottom line.


Losses are a direct result of inefficiency. Eliminate all irrelevant activities, and you’re on your way to a more productive future. Once you get all the unnecessary baggage out of the way, you’ll create a favorable working environment with more time to focus on new ideas.

When you prioritize efficiency, you can comfortably shift your business from an unlikely statistic to a flourishing enterprise.


Kossi Adzo is the editor and author of He is software engineer. Innovation, Businesses and companies are his passion. He filled several patents in IT & Communication technologies. He manages the technical operations at

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