Every business exists to make money so it comes as no surprise to anyone that every manager is always on the lookout for how to increase the profit margins. However, employing drastic measures to increase revenue in the short term can have severe consequences, which might end up tanking profits, or even worse: sinking the whole business!
So, are there really any simple ways that you can employ to keep your workers happy and increase the profit margins in your business at the same time? That’s exactly what we are going to discuss in this article.
Do keep in mind that most of these techniques are geared towards small or medium-sized businesses. This doesn’t mean that if you are a large enterprise these points won’t really help you, but rather a simple remark that these are growing pains which bigger establishments have more or less managed to iron out on their own, already.
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#1. Increasing Worker Efficiency
Most businesses think that reducing costs has to do with raw materials and optimization of the production so that their end product can become less expensive to make. While that should be the end goal in most cases, sometimes it is beneficial to take a step back and have a look at the whole production line and figure out if some aspect of it has been costing the company a lot of resources, be it time or money.
One common flaw that you can almost always see in small manufacturers is that they cannot get the most out of their human resources because of lack of other resources. This means that there is always wasted time and labour which the company has to pay for, at the end of the day. The only way to avoid situations like these is to get an automated software that can keep track of everything going on, from raw material inventory tracking, to order fulfillment, to floor level control and team communication. We have used Katana for this in a few occasions before and have had astounding success with it handling all scheduling and inventory for our workshops!
#2. Investing in a CMMS
Maintenance is a big part of running any business, as making sure that your assets are always at the best possible working condition is the only guaranteed way to ensure a smooth production line that doesn’t face any unforeseen hiccups due to a machine malfunction. This is where installing a CMMS can help out business owners a lot, as the entire system from scheduling maintenance runs to categorising all the assets and their daily stress levels is minimised. This way, there is no chance of human error or negligence which ultimately leads to a happier and safer work environment!
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#3. Looking into Analytics
Business is all about numbers and sometimes being involved in the day-to-day production means that managers tend to lose sight of the bigger picture. This is where having detailed statistics and analytics that outline every detail of the business can prove to be such a big boon. They are useful when you want to take a bird’s eye view of your organisation and are invaluable when planning future investments and expansions.
In the end if you take our advice and can incorporate these 3 strategies into your business, you not only stand to gain in profit margins but also as a leader, since happier workers are more productive than disgruntled ones. As long as your business can take steps to ease the load off of their human resources and lean more heavily on emerging technology, you are guaranteed to be on the path towards success.
After all in the words of business magnate Richard Branson — “Train people well enough so they can leave, treat them well enough so they don’t want to.”
That is the mantra to achieve true success!!