The biggest constraint on a business is not always cash, but the
time and resources of the owner. Using your resources efficiently and effectively can make
the difference between success and failure.
Business-owners
can use their time on 'income-generating' (those matters that get work done and which you
are paid for) and 'non-income-generating' matters. Almost all business-owners spend most
of their time on income-generating parts of the business . Non-income-generating parts
include talking to suppliers and potential customers, talking to your bank manager, and
planning. Time spent on these parts is important as it is an investment for the future.
You must take it into account when you work out your pricing policy.
It may
take years before you see a result from the time you invested in non-income-generating
areas, but if it does pay off it will have been time well spent. Of course, you cannot
neglect the productive side of the business. You have to find the balance that is right
for you.
Managing your time
We have already discussed your focus and direction. The next stage
is making sure your activities take you in the right direction. Many small businesses are
'busy' but some confuse 'activity' with 'achievement'. We all have a limited time to
complete jobs - and as we have said, time is the most valuable resource. Here are some
ideas to help you make the most of your time:
1 Plan ahead
Preparing a list of jobs to complete the next day can be useful as
a way of prioritising work loads. It also prevents people completing just the jobs that
they will enjoy!
2 Concentrate on the MAIN THING
List your tasks in order of importance using the following code:
- top
priority - it needs the best use of your time.
- not
essential that day to be picked up when the As are done.
- trivial
- Sort Cs out straight away - do it quickly yourself, delegate it if you can, or put it in
the bin.
All of
us are tempted by things that are easy or interesting. That is fine if they are the main
tasks, but sadly this is rarely the case. Plan your day's activities in order of
importance.
3 Celebrate
As you work through your day's list of priorities and you finish a
task, physically cross this off your list. This does wonders for your motivation. Remember
to get the As done before you attempt anything else.
4 Make decisions
We are all asked to take on extra tasks and we always come across
other opportunities and ways of doing things - this is where we must use our judgement and
make decisions. For example:
- 'Does
this opportunity take me closer to or further from my goals?'
- 'Does
this opportunity change my day's priorities?'
If the
answer to one of these is 'no' - then say 'NO'!
5 Clear the decks
Delegate whatever you can. Say 'no' to distractions. If you find
yourself thinking about a 'distraction' too much, write it down and deal with it later.
This clears your mind to get on with the job in question.
6 Do it now
Taking too long over decisions is the biggest waste of time. If you know what you have to do - get on with it! You are then less likely to suffer from stress. The two biggest causes of stress in people are:
- Doing
things that don't fit in with your values or aims.
- Having
too much to do - and knowing you will never get it all done.
Stock and assets
Apart from your own time, the other resources in your business that
need managing are people, stock and fixed assets.
The
phrase 'stock turn' is used to describe the relationship between the amount of money you
have tied up in stock and the cost of your sales. The quicker you process your stock, the
more efficiently your investment is working for you. Remember, you usually only get paid
when you complete a job, so completing jobs and reducing 'work in progress' is essential.
In terms of managing your assets, look at the four principles of best use, efficiency, quality and waste. You will need to gather all the information on your assets (such as machinery) and decide:
- How well the production side of your business is managed.
- Where
there are key areas for improvement.
Environmental management
The environment is beginning to have an increasing effect on the
success of businesses throughout Europe. Being aware of environmental laws can help you
anticipate and reduce that effect. Managing how your business affects the environment can
help you improve your performance and reduce costs. Being environmentally aware can also
help you identify new market opportunities.
You
should not consider the environment as a separate business issue. Consider it alongside
other commercial aspects when managing your resources. In understanding your own products
and processes better, not only can environmental effects be reduced but commercial
benefits can also be achieved. For example, controlling resources by reducing waste may
give you an advantage over your competitors because:
- Using
less power and heat reduces costs.
- Using
fewer raw materials saves costs and reduces effects on scarce resources.
A
comprehensive environmental policy should deal with all aspects of your business, from
using paper through to energy efficiency and not just the final product or service. When
drawing up your environmental policy it may be useful to think of areas under the
following headings:
- Raw
materials
- Production
and packaging
- Waste
and recycling
- Premises
- Energy
and power
- Transport
and distribution
Anticipating
change helps make you more effective and competitive. Running your business in an
environmentally-responsible way can help you reduce the risks to your business. This can
not only save you money but also secure your market share with the growing number of
customers, who take account of the environment when they buy goods and services.
